Many of us dread tax season. Filing our taxes can be daunting and time-consuming, whether you’re an individual or a business. You need to pay close attention to detail, as the last thing you want to do is make a mistake that might have significant repercussions. While you may be able to find websites to help you, the best way to ensure your taxes are filed accurately is to work with an accountant. Working with an accountant will not only guarantee your returns are error-free but may help you get more money back.
1. Complex and Confusing Tax Laws that Vary Geographically
Tax laws are complex and vary from state to state and sometimes even from town to town. Online tax software might hint towards the regulations in your state, but an accountant will follow those requirements. They will also explain them to you so that you have a better understanding of the process moving forward.
2. Reduce Your Chances of Errors in Your Filing
Not only are laws complex, but they also change frequently. Accountants are experienced in navigating these laws and will ensure that your documents are accurate, minimizing the chances of errors, mistakes, or penalties. If your forms are inaccurate and you pay less than you owe, you’ll receive the dreaded notification that you owe back taxes, interest, and penalties. These are serious concerns, as in 2020, the IRS reported that Americans owed over $114 million in back taxes, interest, and penalties.
3. Avoid a Stressful and Time-Consuming Process
Time is one of our most valuable resources, and filing your taxes will take up a significant amount. Taxes can require hours of research, filling out forms, and crunching numbers. With your busy schedule and limited free time, devoting the necessary time to filing your taxes will bring additional stress and exhaustion. When you hire an accountant, they carry that burden for you.
4. Discover Tax Benefits You Didn’t Know Existed
Do you work from home? Do you drive an electric vehicle? Do you pay for child care? Are you a student? Working with an accountant can also benefit you financially. Not only are there many tax rules and regulations, but there are benefits and incentives that you might not know exist. It’s never a bad idea to double-check with an accountant what you qualify for.
5. Tax Benefits for Your Vehicle
Many people don’t realize their vehicle might be eligible for tax benefits if they drive an electric car. As of 2022, there are about 1.466 billion vehicles in the world. With such a vast number, our planet is feeling the impact of it more than ever before. Therefore, the tax benefit incentivizes people to make more eco-conscious purchase decisions.
6. Eligible Business and Maintenance Expenses
Your business expenses are also eligible, whether you’re filing an individual return or a business one. For example, you can claim fees for equipment you use, mileage, running your home or business office, and many more. Your accountant can guide you through everything you need to claim those things and what specific benefits are available.
It’s no secret that over the past few years, there have been a lot of price hikes on things that many of us consider necessities. You may be in luck if you’re a business owner feeling the financial strain. You should be able to claim general maintenance and wear and tear, which you’ll appreciate now more than ever. According to Fleet Equipment Magazine, in 2022, maintenance costs rose 3.7% in the fourth quarter and are up more than 10% from the previous year.
Why spend the time and energy trying to comprehend your area’s long list of tax laws when you can hire a professional? Hiring an accountant when you file your taxes may help uncover tax benefits you didn’t know were available and, most importantly, guarantee an accurate tax return.
