Should You Hire an Accountant for Income Tax Filing?

Individuals filing a form W-2 or a simple 1040 tax return form can probably complete the tax filing process on their own. There are many tax prep software apps that can simplify the procedure, but if you are filing a complicated tax form or more than one form, it makes sense to leave the job to someone who specializes in this field. An accountant knows the ins and outs of the tax return regulations and all the IRS tax forms 2022. Below are some good reasons you must hire an accountant for this tax season.

You do a Side-Hustle

Self-employed individuals need to file 1099 tax forms. If you have a side hustle, you must file multiple tax forms showing your income from different sources. Having a professional on your side is quite a relief, as they can handle your taxes seamlessly. You may not know about the standard and itemized deductions, but a professional does. They can explain the benefits of each and help you choose the most appropriate deduction.

You get a Notice from IRS

If the IRS contacts you with a notice regarding missing information or incorrect filing, it’s best to work with a professional to handle it efficiently. Even if they are just asking to send the receipts for the donation you made or your utility expenses, having an accountant handle it is the best decision. If the IRS’s notice is handled incorrectly, you will end up in big trouble and probably a bigger penalty. An accountant knows how to deal with these notices, so you can have peace of mind knowing that there's professional handling all the IRS tax work.

You are Switching Jobs

The first thing you should do after getting a promotion or switching your job is to send your employer a W-4 form (employee’s withholding certificate). This shows the amount you want the employer to withhold from your annual tax. It’s important to ask your employer to send a form W-2 to you and the IRS to show that the tax is withheld from your quarterly paychecks. To draft this form, you can take the help of an accountant. They will ensure every detail is filled as needed.

You Earn from Real Estate Investment

Handling the return on your estate investment is not easy. A professional accountant can help you decide what deductions you can take. Without professional help, there is a good chance you might miss out on the important deductions, which could have saved you tons of money on your annual tax returns. You should consider professional help, at least for the first year of owning a rental property. Getting advice from a professional is highly recommended.

You Don’t Have Time

Doing annual tax takes time. You need to understand different tax forms and deductions and follow the latest IRS guidelines to ensure that your tax is filed and sent as and when required. If you don’t have time to do it manually, hire an accountant. They will simplify the tax filing process.

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How to use Flyfin AL’s self-employed quarterly tax calculator:

The IRS has set up a new mechanism for self-employed people, freelancers, who must pay their taxes. You must pay your taxes four times a year as a self-employed individual. Estimated quarterly tax payments are what these taxes are called, and the total of them must equal your tax liability for the year. To remain on top of your taxes, you must pay your quarterly estimated penalties and keep track of your business spending. For instance, you must pay estimated taxes if you anticipate owing more than $1,000 in taxes, approximately $5,000 in self-employment income. The straightforward self-employed quarterly tax calculator can assist you in determining how much you should pay. What is the best method for paying quarterly taxes? The pay-as-you-go tax system in the United States essentially implies that you must pay your taxes as you earn them. The majority of taxpayers, particularly W2 employees, are unaffected since their employers deduct money from their paychecks to pay their taxes.

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