Tax season can be a stressful time. The pandemic challenges of 2020 bring additional nuances to this tax season. The numerous state and federal relief packages that passed directly impact taxes for individuals and businesses. Given these special circumstances, you may want to consider hiring a professional. Here are some considerations.
Are you leaving money on the table, or — in this case — in the pockets of Uncle Sam?
Lawmakers constantly change the tax code by offering incentives to spur the economy. To benefit from these incentives you must know they exist and how to take advantage of them. To optimize your potential tax savings, it is best to develop a tax strategy before tax-preparation season. A CPA is equipped to design that strategy.
Does your business structure minimize your tax liability?
Single-member LLC, Partnership, and LLC electing S Corp status are pass-through entities that provide different tax liabilities for owners. Many of the wealthiest individuals and corporations pay minimal taxes. Proper business structure could save you thousands of dollars.
Are you equipped to prepare your own taxes?
The plethora of self-service tax preparation tools are useful for those who are versed in the tax code, have minimal income, or are okay with paying the customary tax rates. If you own a business, own real estate, invest in the stock market, or want to minimize your taxes, a CPA can provide greater insight.
Plans go wrong for lack of advice; many advisers bring success.Proverbs 15:22
For more information that directly relates to your personal needs, I’m happy to help. Visit the Joy of Taxes website.