What is a tax preparer?
A tax preparer is an individual who is highly qualified in the area of tax laws, procedures, and the practices of filing taxes. Typically, a tax preparer will charge a fee for their services and this fee will vary depending on how simple of complex your tax situation may be.
The Internal Revenue Service (IRS) issue the guidelines that govern how your taxes need to be prepared. The guidelines from the IRS are complex and even change yearly depending on the complexity of your tax situation.
If understanding these difficult guidelines is something that you struggle with, it is highly encouraged that you seek out help from a professional tax preparer.
Who needs a tax preparer?
A tax preparer can be beneficial to so many different individual situations. Whether you are short on time, overwhelmed by the process, do not understand the tax guidelines, or have a complex tax situation, hiring a tax preparer will lead you in the right direction.
There are certain groups of individuals who should seriously consider requesting the assistance of a tax preparer.
- Individuals who are self-employed & business owners
This group involves people who are freelancers, small business owners, consultants – any career option that created a need to pay self-employment taxes. Individuals who work for salary and choose to start a small side business to bring in extra cash may have to pay self- employment taxes on top of their salaried tax. This is why it is crucial to understand the tax preparation process and the guidelines that the IRS has put in place. There are also deductions that can be made and certain write-offs that can be put into place that a tax preparer’s expertise can help you identify through your expenses.
- Individuals buying or selling a home
When going through the process of buying or selling a home, a slew of tax issues can arise. Homeownership brings about a new method of tax preparation, and with the right worker deductions related to certain homeowner expenses can even be made. Engaging the help of a tax preparer will offer you the expertise you need to navigate the tax process smoothly.
- Individuals who sell stocks, business holdings, or other large assets
In tax preparation there is an umbrella term called capital asset transactions. This is defined by the sale or exchange of stocks, securities, bonds, or any other investments. While this seems concerning to most, these transactions are actually taxed at a lower rate. Preparation for these types of taxes requires extensive knowledge of the long list of rues that need to be followed to make sure that it is done properly. There is a separate form to declare capital assets on and there are guidelines regarding deductions that many people misinterpret. When it is time to report capital assets on tax returns, the best possible option is to hire a tax professional to guarantee that it is done without fault.
- Individuals who provide financial support to someone else
If you provide financial support for somebody, there is a high likelihood that they are considered a dependent and can be claimed on your taxes. There are exceptions to the rule. If you are supporting a friend or a relative that is not in your immediate bloodline, you may not be able to claim them. If you need help understanding how to navigate the exceptions reach out to a tax preparer for further explanation.
Tax Preparation Coral Gables