Showing posts with label tax time. Show all posts
Showing posts with label tax time. Show all posts

Thursday, May 14, 2020

Are You Paying Too Much in Taxes?


Is tax time something that you absolutely dread? Do you always know that you’ll be saddled with a big bill? If so, then there’s a chance that you might be paying too much in taxes.  


While it’s true that some people do ultimately owe large amounts to the IRS each year, other people really are overpaying without realizing it. If you think you’re one of them, here’s what you can do about it.

Hire An Accountant . . . or Fire Your Old One

First, if you’re not currently working with a professional accountant, start doing so right now. Many people who overpay on their taxes are people who file them all on their own without any professional guidance or input.

If you do have an accountant and you’re still overpaying and swimming in tax debt, then it may just be time to hire a new one. After all, not every tax professional is the same, and some work more in your best interest than others.

Take Advantage Where You Can

The tax law changes all the time. Sometimes, this doesn’t work in your favor, such as when a credit or a deduction you once relied on goes away. Other times, however, it does. A new deduction might pop up, for example, or there might be some new incentive to take advantage of.

However, you can’t enjoy any of these things if you don’t know about them. Thus, keep yourself educated on and interested in the latest tax news. Sure, it might not be your idea of a great time, but it could save you some big money come tax time.

Plan Early

Are you one of those people who waits until the absolute last minute to file your taxes? If so, that could be your problem.

When you procrastinate on your taxes, you often rush through your returns, just trying to get them done and not really focusing on how it affects what you’ll owe. Then, if there are changes that need to be made, you don’t have the time to make them, so you just file and promise yourself you’ll do better next year.

If that sounds like you, why not finally make good on that promise? Do better, and do yourself a favor by planning and preparing your taxes early, ideally with the help of a professional, so that you’ll have time to make changes that could help you out.

No one should have to struggle to pay their taxes. If you’re struggling, chances are that you’re doing something wrong, potentially something that could easily be fixed with the right help. So, stop complaining and start doing. It all starts with finding a qualified accountant to work on your behalf, so take that first step today.

Monday, March 7, 2016

How to Choose an Accountant

Tax time is coming! And, unless your taxes are super simple, it’s probably in your best interest to hire an accountant to act as your tax preparer. In fact, even if you think your taxes are easy enough to do on your own, hiring a tax preparer is a wise decision. These experts can ensure you get the maximum savings possible when you file.



However, it’s important to understand that not all accountants are created equally and that you’ll want to be selective about who you hire. You need to find someone you can trust and someone who knows the ins and outs of tax law. Fortunately, finding that person isn’t as difficult as you might, not if you know how to go about it.

Credentials Count
To begin with, you absolutely want to choose an accountant who has all the right credentials. Look for an accountant who has a “preparer tax identification number” (PTIN) that has been provided by the IRS. The IRS requires all people who offer tax preparation services to apply for one of these identifying numbers, so if your tax preparer doesn’t have one, run away!

As for other qualifications, you’ll want to make sure that your tax preparer is, at the very least, “registered,” which means he’s completed basic training, or, even better yet, an “enrolled agent.” This second qualification means the tax preparer has passed an IRS exam and is regularly educated in relevant areas. You can also, of course, go with a certified accountant who has received his certification by completing all of your state’s requirements.

These credentials can really tell you a lot about the quality of the tax preparer or accountant you are thinking of using, and by checking up on them, you’ll protect yourself from getting scammed or dealing with a tax advisor with a bad track record.

Be Wary of Inflated Costs
Every tax preparer or accountant is going to charge you a fee for his or her services. That’s normal. However, some people are all about the money and will attempt to get as much as they possibly can from you. Obviously, you want to avoid an accountant who cares only about money and doesn’t really put your best interests first.

Do your research and educate yourself on the going rates of accountants in your area. That way, if you get quoted a heavily inflated price, you’ll know it and can go elsewhere.

Also, bear in mind that the IRS advises against using tax preparers who base their fees on your expected tax refund. They’ll often report false information in an effort to make your refund and, thus, their paycheck higher!

As you can see, it’s very important to be careful when it comes to choosing an accountant and/or tax preparer. Your best bet is to choose a financial advisor or accountant you can rely on and build a trusting relationship with all year long. That way, when it comes tax time, you’ll already have someone you know you can count on- there won’t be any scrambling to find someone good. If you are currently looking for a tax preparer, though, these tips will help you greatly in your search.