Right now, everyone is scrambling to file their taxes in hopes of getting the largest refund possible. If you work a normal job, with no extra income sources, you’re likely filing your return with TurboTax. If you have a slightly more complex situation, like a business owner or homeowner, you may be struggling between hiring a CPA to help file your taxes and just doing it yourself. The CGS Team is sharing a few perks that CPAs can provide to help you make that decision.
You Need a CPA if You Earn over $200,000
Most of us may not be at that income level just yet (if you are, kudos to you), but income that exceeds $200,000 is more likely to be audited by the IRS than lower income levels. In this situation, it’s best to move forward with a professional who can give you the best advice, and ultimately file the best return so that an audit doesn’t turn out bad.
You MAY Need a CPA if You Have Multiple Income Sources
The more income sources you have, the more complicated your tax return will be. If you are a simple W2 wage-earner, there’s not much to it – simply report the income that shows on your W2. If you have rental properties, self-employed income from a side hobby or small business, make money in the stock market, or have any other form of income, it may be best to consult a CPA to ensure you are filing appropriately and taking advantage of any tax perks that apply to your situation.
You MAY Need a CPA if You Owe Back Taxes
Remember that year in college where you made no more than $10,000 and didn’t file your taxes? It’s likely that situation, or something similar, came back to haunt you in the form of a rude letter from the IRS. If you owe back taxes, a CPA can help you work through it and get you on the track to paying it off as quickly as possible. Sure, you can call the IRS yourself and see what repayment options that may have for you, but those hold times are no fun! Also, if you don’t know what to say, you may not get the most accurate information.
You MAY Need a CPA if You Have a Special One-Time Situation
Did you inherit a large sum of cash or property? Did you receive a settlement? Are you giving someone a large financial gift? Certain instances that require large amounts of cash or assets that are worth a lot of money may result in you paying more taxes. If you aren’t sure how a situation is going to affect your tax return, seek the help of a CPA.
You MAY Need a CPA if You Got Married or Have Kids
Marriage and kids can certainly change how you pay taxes and how much money you can get back from the government. If you are newly married or a new parent, it may be best to consult a CPA to find out the best way to file. You don’t have to keep using the CPA year after year, especially if you’ve learned what you need to do to maximize your return.
Related: 4 Personal Finance Accounting Systems to Try
As we get older, our situation will inevitably look different. If you are unsure, it’s always best to seek the help of a professional. It’s no fun to owe the IRS money, or anyone for that matter! Do you file with a CPA? What made you choose a CPA over a DIY system like TurboTax or TaxAct? Share your tax-filing experiences below by leaving a comment!
1 thought on “Do You Need a CPA?”
My tax situation has changed quite a bit over the years, but I’ve found that TurboTax is helpful – I just hope I’m not missing out on anything big! Anyone have good experiences with CPAs?