Is It Time to Have an Accountant Manage Your Taxes?

Most individuals can file their taxes on their own, somewhat easily and without help from a professional. However, this isn't always the best choice, even if you've been filing your own taxes for many years now. Note when and why it's good to think about hiring an accountant for your personal taxes.

1. You've heard of changes in tax laws

It's often very difficult for an individual who is not an accountant to keep up with changing laws regarding taxes, and it's also not uncommon to misunderstand certain changes in those laws and how they affect you. These laws may extend past just your tax bill; for instance, changes in whether or not you can deduct healthcare, moving, and education costs can all affect how you file your taxes and what you include as deductions. Rather than trying to track down those changes and understand how they affect you, it might be best to hire an accountant whose job it is to keep up with those laws.

2. You've had a significant job or wage change

If you've gone from being on someone else's payroll to being self-employed, or vice versa, or have had a significant change in your wages, this can greatly affect how you file your taxes and the tax bill you might expect. Additionally, you may be accustomed to claiming certain deductions when you're self-employed but now you cannot take those deductions when on someone else's payroll, or may be overlooking deductions as a self-employed person. An accountant can walk you through all these areas of your taxes that are different now that your employment situation has changed.

3. You want to lower your overall tax bill

Don't assume that your simply "stuck with" the amount you typically pay in taxes every year; you may be overlooking certain financial strategies that could lower that bill, even significantly. This might include moving certain monies to a trust rather than another type of savings account, filing separately from your spouse, or deducting items you're overlooking and didn't realize you could claim on your tax returns. An accountant can also work with you to develop a long-term strategy for lowering your tax bill over time, or help you prepare for when your tax bill may become higher, such as when your children become of age and their expenses can no longer be claimed as deductions. Keep in mind that an accountant can help with your tax situation overall, not just file those taxes every year, and work with them when you want to improve your entire financial situation.