It’s never easy to do your own taxes even as software becomes more user friendly with each passing year. Financial status grows to become more complex as you age, buy a house, get a promotion, invest, start a family, etc. As each scenario adds a level of difficulty to your finances, so too it effects your ability to file your tax return with the best possible outcome while avoiding audits. Here are a few tips to help you if you are experiencing any of these scenarios and wonder if you need a person to do your Houston taxes.
Did you start a business?
Those who have started a business are in for a world of tax regulations. Even the new tax law will not help you. Many items must be claimed, filed for, and done so with perfection. This includes reporting all income from sales in cash, credit card, checks, wire transfers, and other forms of payment.
Filing your taxes becomes even more complex when taking all of your expenses into account. Each one has its own rules, the breaking of which can be serious. Legitimate business expenses include but are not limited to:
- Property expenses including rent, mortgage, closing costs, property taxes, etc.
- Payroll for all full time and part time employees.
- Pay for contractors.
- Expenses for supplies including building materials, rentals, inspections, and more.
- Office equipment expenses such as desks, computers, cabinets, printing paper, and just about anything you can buy at Office Depot.
- Software for email, scheduling, etc.
- Operating expenses such as electricity, water, phones, internet, etc.
- Many other deductions.
2. Did You Buy a Home?
Tax laws allow for substantial credits/deductions for those who have purchased a home. First time buyers may get an even bigger return. Those who have bought a home before can still enjoy many benefits if having their taxes filed by an expert who knows them. They can tell you what options are available, as well as how to maximize their results. In many instances these savings can cover the cost of preparing your taxes.
3. Did You Retire This Year/ Do you Plan to Retire This Year?
Like the above, many tax benefits are available to current/potential retirees. A tax preparation professional can tell you what those are and how to get them. Those who plan to retire in the coming years can also get a more accurate financial outlook on their future than any piece of software could give.
4. Are You Audit Prone?
Those who have a significant amount of credits/deductions may be at a higher risk for an audit by the IRS. The risk rises even further if this is the first time you are filing for a new credit. Those who file with inconsistencies, such as higher expenses than income, can also be at risk for audit. The cost of an audit can be disastrous, making it more cost effective to have a person do your federal and Houston taxes.
5. Is it Just You and the 1-2 incomes?
Single filers with income coming from one employer are least likely to need a person for their taxes. In some cases, only a couple of documents are used to do so. A few deductions are even still available to filers who use the short form. The basic standard deduction still applies ($6,350 for individuals in 2017), as do several others including:
- Contributions to a traditional IRA.
- Moving expenses (if job related).
- Alimony.
- Students may deduct their loan interest, tuition, and fees.
- Educators may deduct expenses related to their work.
More on Do You Need a Person to do Your Houston Taxes
If you live in the area and need a person to do your Houston taxes, feel free to contact us for to learn more on how we can help.
