Many people can get by doing their own taxes or using an online program that simplifies the process. However, in some cases, this may not be the best option. This is often the truest when you have a more complex tax requirement. This means it is more likely a mistake will be made, something that an Indianapolis tax accountant can help you avoid.
Here are some reasons you might need to hire a tax accountant:
If you earn over $200,000 a year, it’s smart to have an accountant. This is because your chances of being audited go up exponentially when you make at least this amount. Dealing with an accounting firm is preferable to dealing with the IRS if something is flagged. This is one of the instances where a tax accountant is a great investment.
You should also consider an accountant if you receive K-1 forms. Some of these are simple to add to a tax return, but others are complex and require extra care. A tax accountant can easily add these to your tax paperwork and make sure it’s done the right way.
For those who are subject to the Alternative Minimum Tax (AMT), a tax accountant will simplify things. This requirement makes your taxes more complicated, and most of AMT payers choose to use a professional.
If you have what is known as material foreign source income, you should consider the accountant. This can apply to you even if you don’t know it, such as if you own foreign mutual funds, ETFs, or stocks. Some of these you may not even realize are foreign without the input of an accountant.
Those who are self-employed, own rental properties, or own a business should also consider the option. This is because an accountant will be capable of finding ways to minimize your taxes using depreciation of real estate or business assets.
Another reason to hire a tax accountant is if you anticipate a large capital gain tax. The accountant can help you minimize the taxes using various methods that you may not know about if you do your taxes on your own.
OnTarget CPA in Indianapolis offers tax accounting that you can trust. They also have bookkeeping, planning, and consulting services. You can sign up for a free consultation on their website or call their office at 317-536-3104 to ask questions and get more information.