Tax Season 2024: Why TurboTax Isn’t Enough & How a Pro Saves You Money
It’s that time of year again. Tax season has officially arrived! While some people tackle their returns head-on with DIY tax software, others enlist the help of a trusted professional to make sure everything is filed correctly. This year, there are even more reasons to strongly consider using a professional, especially if you own a small business.
This blog post will show you why hiring a qualified tax professional who can expertly navigate the complexities of tax preparation in 2024 is essential.
Let’s Talk TurboTax
Many people use popular software like TurboTax because it seems simple and cost-effective. But as I have explained in my previous videos and posts, it’s important to understand the limitations of DIY tax software, particularly in the current tax climate.
If you did not know, this current tax climate is characterized by many changes or acts/laws that the government has passed. First, it was the Trump Administration laws that are still in effect, and second, the Biden administration changes that are still trickling in and affecting your taxes.
With the ever-changing tax laws, new credits, and deductions implemented in response to the COVID-19 pandemic and beyond, simply filling out forms in tax software could mean leaving hard-earned money on the table.
Filing your own taxes also increases the risk of errors, which can lead to audits and penalties down the road.
Changes In The Past Years: What You Should Know
Here’s where a tax professional like me can be a lifesaver. They stay up-to-date on all the latest changes in tax law, and here are just a few things to consider this year:
- COVID-19 Checks: Many small businesses qualified for certain tax credits/checks if they were negatively affected by COVID-19. These payments were, in some instances, mishandled or illegally obtained. As a result, it impacted some of the businesses, and some are still filing back taxes to fix their mistakes. If not handled properly, that could result in penalties, such as those associated with mishandled Employee Retention Credit (ERC) applications. A professional like me can help you clean up this mess during this tax season and get a chance to start on a clean slate.
- Sales Tax Deadlines: If you’re a business owner, you must know your state’s deadlines for sales tax, as they vary widely. This is crucial, given that this month’s deadlines fall in the middle of a federal tax season, thus stretching business owners with little to no knowledge of taxes.
- Audits on the Rise: The IRS is stepping up its audits, particularly on small business owners. Protect yourself and your business by ensuring your taxes are done right.
The Benefits of Using a Tax Professional
- Maximize Your Refund (Or Minimize What You Owe): Professionals understand the nuances of the tax code, helping you claim every deduction and credit you’re entitled to.
- Peace of Mind: Sleep soundly, knowing that your taxes have been prepared by an expert who is accountable for their work.
- Year-Round Support: A tax professional isn’t just there for tax season. You can tap into their expertise throughout the year for other financial decisions.
Click below to watch my full video on YouTube Video: Navigating Tax Preparation Services and Why You Should Use a Trusted Professional.
How to Choose the Right Professional
Finding the right tax preparer is essential. Here’s what to look for:
- Credentials: Check their credentials on the IRS website. Do they hold a CPA, EA, or other recognized professional designation?
- Expertise: Discuss your specific tax situation and ensure the professional has experience in relevant areas (business ownership, crypto, etc.).
- Communication: Choose someone you feel comfortable communicating with and who is responsive to your questions.
Don’t Wait!
It’s best to get a head start on your taxes. Don’t risk missing important deadlines or getting caught in the last-minute rush. Contact a tax professional sooner rather than later.
Need Help?
If you’re looking for a trusted tax professional, My team and I can help! Visit my website or call (202) 618-1295 to discuss your needs.
Frequently Asked Questions
1. I’ve always used TurboTax. Why should I switch?
While TurboTax is convenient, it might not be the best choice in the current tax landscape. Tax laws change frequently, and new credits might be available. Without expert knowledge, you could miss maximizing your refund or minimizing your tax liability. A professional can ensure you get every dollar you deserve.
2. How much does it cost to hire a tax professional?
Costs vary depending on the complexity of your return and the preparer’s experience. It’s an investment: A pro might cost more upfront, but they potentially save you much more in the long run by optimizing your taxes and preventing audit issues.
3. What if I own a small business? Is a tax professional even more critical?
Absolutely! Small business tax returns are more complex, with additional deductions, credits, and specific deadlines. A tax pro with expertise in small business tax laws can be a huge asset, saving you time, money, and stress.
4: Can a tax professional help me year-round?
Yes! A good tax professional isn’t just there for tax season. They can offer guidance on financial decisions throughout the year, helping you make smart choices and plan for the future.
