Every year, millions of people in the United States weigh the costs and benefits of using a CPA for tax preparation and planning. Many of them eventually opt to use less comprehensive services or even to take on the task of preparing their own taxes, but for some Americans, using a CPA is the best path to the most cost-effective tax position. If you’re considering whether it’s worth finding a certified public accountant for your tax preparation this year, here are three reasons they can save you money. Not every reason applies to every person, but if all three apply to you, it’s probably a good idea to invest in a CPA’s tax services Santa Ana CA.
1. Help With Small Business Tax Reporting
If you own your own small business or you’re part of a partnership with others, you’ve got a complex tax situation, because your income taxes need to report the profits you make from the business as personal income. That means paying additional self-employment tax on them, but it also opens up a range of deductions and savings that can be quite difficult to parse on your own. A CPA is uniquely suited to find you the best tax position for your business income.
2. Tax Planning for the Next Year
If your tax situation is complex due to multiple lines of investment income, business ownership, or complex itemized deductions, tax planning can help you make each year’s return easier to file. CPAs offer not only preparation services, but full range tax planning, which means that you can use their help throughout the year to have an easier time with your taxes every April. They can help you find ways to set up your accounting practices and document expenses that just make everything easier to figure out.
3. Find Every Deduction on Your Personal Taxes
Even if you didn’t think to bring a CPA onto your team early enough to do advance planning for this year’s taxes, CPAs have the training to get you all the deductions you deserve from the range of personal itemized deductions, or to determine the standard deduction is your best tax position. Eliminate the guesswork by letting an expert help.