Doing your taxes can be confusing. With constant tax law changes, evolving filing requirements and an increasingly complex financial landscape, it’s no wonder many taxpayers experience fear trying to navigate the process alone using tax software or DIY methods. However, there is another appealing option — hiring a certified public accountant (CPA).
While partnering with a CPA may seem expensive, their financial expertise and knowledge of the tax code offers unique money-saving opportunities that individuals can miss when preparing returns themselves. By honing in on often-overlooked deductions and credits, protecting against audits, and planning tax minimization strategies year-round, CPAs frequently save clients their fees and more. For those looking to legally reduce their tax obligations as much as possible, a qualified tax professional could be an excellent investment.
Here are five of the top financial upsides to working with a CPA on your taxes.
Maximize Deductions and Credits
CPAs stay updated on the latest tax laws and know where to uncover hidden deductions and credits the average filer doesn’t recognize. As specialists, they audit your unique financial life for tax-reducing opportunities.
Should the Internal Revenue Service (IRS) target you for an audit, rest assured a seasoned CPA has the experience to professionally communicate with agents on your behalf. They intimately understand your return and can persuasively defend each line item if necessary.
Year-Round Tax Planning
Tax software is simply for return preparation, with no forward-looking guidance. Alternatively, CPAs assess tax consequences of major financial decisions across the full year to minimize future obligations in legal ways that individuals would have a difficult time doing themselves.
Whereas retail tax programs have limitations, CPAs utilize pricy industry-specialized software with advanced capabilities, unlocking convoluted savings strategies. This sophisticated technology allows them to dig deeper into nuances and exposures regular filers don’t have access to on their own.
A CPA provides reliable counsel not just during tax season, but year-round for key money decisions around investing, charitable giving, selling assets, estate planning and much more, through a personalized lens. This helps further lower future tax bills — and maximize your money in other ways, too.
Without expertise, it’s impossible for taxpayers to uncover the spectrum of available deductions and credits on their own. CPAs intimately understand the intricacies of tax code to deliver significant and legal tax savings in both the short and long-term — easily justifying the cost.
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