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3 Good Reasons to Hire a Tax Consultant
Are you one of the over 144 million individual taxpayers in the United States?
For the average taxpayer, doing taxes isn’t a complicated task. If you have all the necessary information, filing your tax return won’t take you longer than 30 minutes.
However, taxes tend to become complicated as soon as your financial situation gets busier. Perhaps you now have multiple sources of income. Or maybe you inherited life-changing money, and you’re suddenly wealthy.
If you’re considering hiring a tax consultant to help you work out your new tax situation, you’re making a smart move. Read on to learn how exactly a tax professional will help you.
1. You Need Proper Tax Planning
The U.S. tax code is vast. If you’re anything like most people, you really don’t have clear information about your tax obligations, especially if you’re self-employed or always have someone else preparing your returns.
As such, if you want to ensure you’re paying only what you owe and making the most of your deductions, it’s important to get professional tax help. A tax consultant will assess your financial situation, including income, loans, and charitable giving, and develop top tax strategies aimed at lowering your overall tax liability.
Without proper tax planning, you could end up paying a lot more money to the government than you’re legally required to.
2. You’re Facing a Divorce
Divorce doesn’t just bring a marriage to an end. It also has implications on your finances and tax situation.
If you’re employed, for example, your employer will need to adjust the tax amount they withhold from your paycheck. This requires you to file an updated W-4 form with the employer. Other aspects of a divorce, such as property division, alimony, and child support can also have a big impact on your taxes.
Divorces are rarely a walk in the park. Especially if yours isn’t an amicable divorce, you probably aren’t in the right headspace to figure out your changing tax situation.
In this case, hiring a tax consultant is a prudent move. They’ll advise you on everything you need to do to not only be tax compliant but also make the most of tax breaks that apply to the newly divorced.
3. You Relocated Abroad
If you recently relocated abroad, maybe for work or even to start a new life, it’s easy to forget about your home country’s tax laws. After all, you’re now living in a new country. Why should you care about what’s happening back at home?
Unfortunately, as long as you are a U.S. citizen, you still have tax obligations regardless of where you live and work. However, the tax regulations do change. In most cases, people living abroad are taxed at a lower rate and are entitled to several deductions and tax credits.
You probably don’t have the time (or enthusiasm) to research your tax obligations. It’s advisable to hire a tax consultant to help you figure things out and keep your taxes in order.
It Pays to Hire a Tax Consultant
Hiring somebody to do a task you can do on your own isn’t an attractive prospect for most people. However, when it comes to your taxes, you better heed the advice and hire a tax consultant. This professional will give you tax advice that will benefit your personal finances.
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Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
