With every job comes the question of whether to hire a professional or DIY approach is the way to go. While many tax software offers year-round access to a combination of business industries and individuals, they have hardly put tax professionals out of business. So, if you need personalized services, you must find the most reliable tax preparation service provider.
Deciding whether to pay a tax preparation professional to prepare your income tax returns depends significantly on your knowledge of tax documents and confidence in crunching numbers. You may be fine forging ahead on your own if tax-related calculations are your thing, but you may need a professional to handle your tax filing and refunds otherwise.
Preparing taxes on your own
It’s tax season again, and the good news is that anyone can file their own tax return. But just because you know a thing or two about corporate taxes or have key access to bookkeeping services doesn’t mean you can prepare your own taxes successfully. A pro may uncover tax refunds, credits, and other strategies you were not aware of that could lower your tax bill significantly.
Your tax situation may be simple: Platforms like Canada.ca have made it very easy for Canadians to file income tax returns at the comfort of their homes. Just follow a few steps, and … yes! You just filed your returns or tax refunds in minutes. But this is not always the case for most people, which is why you should seek Canadian tax services.
You have the time: Do you have the time to gather your tax information, financial records and review the completed returns before filing? If so, you can handle your tax preparation activities on your own. But as you can imagine, you will take longer and probably make mistakes that could cost you money. That’s one more reason to hire tax preparation services.
When to hire a tax preparation service?
If your tax situation is complicated and you have no time to handle tax issues, hiring a tax professional is the way to go. Here are some of the scenarios that necessitate tax preparation service.
You are self-employed
When you own a business, you do not have an employer withholding taxes from your monthly paycheck. You are responsible for planning and tracking your income and deductibles and calculating tax payments. Unless you have an in-depth understanding of deductible expenses, accounting for inventory, depreciation, and tax calculations, it is in your best interest to hire tax services.
Even if you already have an independent contractor providing accounting services, payroll processing services, bookkeeping services, and other timely services, you still need a tax preparation service to handle your corporate tax function effectively.
You had a big life event recently.
Getting married or divorced, starting a business, getting a child, and other major life events can significantly impact your taxes. These events directly affect the number of tax deductions, type of deductions, tax refunds, and other aspects of your taxes. In this case, you need a tax preparation service to figure out how any of these major life events impact your tax status.
You own a rental property.
Generally, a tax return with rental property income can be tricky. Special tax rules govern depreciating rental assets and the entire process of claiming losses from rental properties. Tax pros provide accurate services to help their happy clients claim rightful deductions.
You have foreign investments or foreign bank accounts
Foreign investments and foreign bank accounts can trigger more complex tax filing rules, even when you aren’t earning from such accounts. There are also penalties for not adhering to those regulations, not to mention more penalties for failing to disclose such investments and bank accounts.
You plan to save money
It is tempting to forego tax preparation services to save money. But what if such services could save you more money?
Well, you can easily drop numbers into an online tax software or any other DIY software. But a tax pro can successfully analyze your tax situation, look for various tax planning opportunities, and help you claim the biggest refund or maximum refund possible. So, a reliable tax preparation tax provider can do more than beef up your financial bottom line.
You made errors on your previous tax returns.
With the ever-changing tax regulations, anyone can make errors on tax returns. If you notice the mistake before CRA does, it is time to consult with a tax professional. PersonalBanker is only a phone call away to help you address your tax-related issues.