Some New Yorkers are hesitant to hire an accountant for tax preparation. While it’s sometimes possible for Americans to prepare and submit their own tax returns with little difficulty, this is only the case for people who have simple, straightforward tax situations. Read on to find out about a few circumstances where it’s almost always better to hire a professional for Income Tax preparation in Manhattan.
The IRS is more likely to audit taxpayers who make more than $100,000 per year. Anyone whose income exceeds this amount should hire a professional accountant to ensure that everything is in order. Hiring a pro will also give them independent representation if they get audited.
Complex Tax Situations
Anyone who has a complicated tax situation that involves large capital transactions, gifts of appreciated assets, or a K-1 from an S-corporation or a partnership should seek professional help with Income Tax preparation in Manhattan. The average taxpayer doesn’t have an accurate understanding of the relevant regulations that apply to these situations, but the average accountant does.
Those who are self-employed should always hire accountants to do their taxes. More often than not, self-employed taxpayers will save money in the long run, since accountants know about all relevant deductions.
Lack of Knowledge
Tax preparation requires specialized knowledge. Few consumers would try to fix their own cars if they knew nothing about mechanics, yet many taxpayers assume it’s possible to just wing it and still come out ahead. This is almost never the case, so just hire an accountant to ensure that everything is in order.
Lack of Time
Not all New Yorkers have extra time on their hands to sit in front of a computer struggling with tax software. There’s nothing wrong with hiring an accountant just to avoid having to waste precious time.
The Bottom Line
Most taxpayers are better off hiring an accountant to prepare their taxes than filing independently. Unless taxpayers’ financial situations are very straightforward and haven’t changed at all in the last year, they can usually save time, money, and hassle by calling a pro. Contact Robert A. Woloshen CPA PC to get started today.