When to Hire a Tax Professional
How to Determine if You Have a Complicated Tax Situation
The struggle is real!
Doing your own taxes that is… ;)
Listen, if you have a straight-forward tax situation (W2 only, no dependents, etc.), then DIY tax preparation software can work for you. As long as you have the time and good attention to detail.
That’s a matter of IF you want to do your own taxes.
Now, let’s talk about SHOULD you do your own taxes.
At what point in your life does it make sense to hire a tax professional (like us)?
As you venture through life, stuff happens. These life events sometimes make your tax situation more complicated and move you into a place where professional help is warranted.
We put together this comprehensive list to help provide clarity on when you should hire a tax professional.
Hire a Tax Professional If You...
Always owe the IRS or state tax at tax time
Own a business, or are self-employed
Have income over $200,000 per year
Had a major life event: change jobs, marry, divorce, have kids, adopt kids, buy or sell a home
Have complicated investments, like investments in partnerships or trusts, or do a lot of stock trading
Receive a large inheritance
Buy energy efficient appliances, home improvements, or electric vehicles
Borrow money from a retirement account
Trade cryptocurrencies
Have questions you can't answer
Just want to relax and let someone take something off your plate :)
Beyond just tax preparation, the right tax professional will offer other, deeper benefits as your partner.
Tax Professionals Offer More Bang for Your Buck: Strategy and Assurance
Year-round tax advice and tax planning
Optimize your tax situation and lower your tax burden
Make sure you're taking all the credits and deductions you qualify for
Record keeping of complicated investments
Assistance during an audit by the IRS
Strategize on business structure to lower or avoid taxes over the long-term
Help calculate quarterly tax payments to help with level out your cash flow
What do you think? Do you fit the bill?
Would a tax professional provide a level of support that you need?
Did we mention that every Blue Fox client gets 1 hour of free tax planning pre-tax season (September or October) to strategize on maximizing their tax refund? This is particularly helpful for individuals who are self-employed.
If you and/or your family could use a tax professional this year, our team at Blue Fox is delighted to speak with you.
Schedule a free consultation using one of the buttons below that most closely represents your tax situation.
If you’re not ready yet but want to keep in touch, subscribe to our newsletter! We’ll make sure you’re in the know on important tax deadlines and updates as they are announced.
More about Blue Fox: In addition to tax services, Blue Fox provides social impact organizations (nonprofits and social enterprises) with back-office solutions including accounting, bookkeeping, payroll, HR, tax preparation, and financial coaching.
Here are some other articles you might enjoy reading:
How to Handle Taxes For Your Side Hustle
Humans Doing Taxes? Yes, We're Old School!
Personalized Tax Services For Independent Contractors and Sole Proprietors
