With the advancement of technology over the last few decades, many people are now deciding to do their taxes on their own, with the help of online software. While this is a great way to save money, online software is not absolutely free of problems. If you are someone who usually does their own taxes, this might be the year when you hire someone else to help you. There are a few situations that can make the process extremely complicated, and you may appreciate the expertise of a certified tax preparer. In an effort to help you avoid the headache of trying to figure out your tax situation, here are a few tax situations in which you may want to hire a professional for tax preparation.
Buying/Selling A House
Buying and/or selling a home can be tricky situations to get right on your taxes since several things involved are tax-deductible. For example, your mortgage interest is tax-deductible. Your real estate costs and moving costs may be deductible. You may get a tax credit for buying a home. In addition, you may or may not have to pay taxes on the proceeds you get from selling a house. The value of the home you buy or sell also comes into the equation. For these reasons and more, you may want to just get some help.
Itemizing Tax Deductions
If you have a tax deduction totaling more than $24,800 (in 2020) you should do an itemized deduction schedule to save the most money. However, many people have a hard time with the itemized deductions form, so they miss out on the savings.
If you have recently retired, congratulations! Now you need to figure out how to do your taxes. If you have a social security distribution, you will need to figure out how to fill out the appropriate paperwork. In addition, your 401(k) distributions require a special form to be filled out. If you retired this year, you will also still need to pay your taxes on the income you made. While retirement is exciting, there are also hassles that come from finally finishing work.
In conclusion, big life events can be hard to get right on your own, tax-wise. If you have gone through one of these complicated processes, you may want to talk to a tax consultant or preparer so that you can get the tax breaks that you deserve. There are many companies in each state that offer tax prep. Talk to one of them to get started on saving your hard-earned money. Good luck!Share