Ten Reasons Why You Need a Certified Public Accountant for Your Tax Returns

Tax Returns can bring quite a hassle if not done properly. Here are the top ten reasons why you need the help of a Certified Public Accountant.

 

 

Certified Public Accountant Has a Big Network

Certified Public accountants have a big network at their disposal and can work together with them to advocate in place of their clients. They maintain and develop a sophisticated level of professional connections and knowledge to assist you in achieving your goals.

 

Your Tax Return Can Be Much More

Your tax returns are not just forms that are used to compute your due taxes. Only a CPA can help you understand how your tax returns can provide you with complete directions to your finances and how you can use these directions to achieve your financial goals.

 

You Can Avoid Mistakes on Tax Returns

Since a single mistake on a tax return can cost you a lot, your CPA can help you in reductions of your mistakes. Even if you do make a mistake and get penalized by IRS, your accountant can help with reductions in your penalties.

 

Tax Returns Regarding Individual Retirement Agreement

There is a rise in the levels of contribution cap levels of both Roth IRA and traditional IRAs every now and then. Only a Certified Public Accountant can help you comprehend how to decide whether a Roth IRA or a traditional IRA works best for you.

 

Dealing With Tax Returns and Incentives

Tax incentives are applicable whenever you purchase equipment, plant or property for your business. A certified public accountant knows all the laws and regulations that help you with either immediately writing off your purchases or taking a fifty per cent bonus in depreciation deduction.

 

 

Dealing With Net Investment Incomes

There is a new tax in the market termed as net investment income tax. An extra 3.8 percent of tax is levied on certain investment incomes when certain thresholds are exceeded by adjusted gross incomes. CPAs know how and when this additional tax might be applicable on you and can help you with it.

 

Reduction in Long-Term Capital Gains

Long-term capital gains have also increased in the market with the top rate exceeding twenty percent. However, these gains can be lower for taxpayers and people with ordinary income. Your CPA will be aware of your investments that might fall under the gains or different rates from different assets.

 

Dealing With Tax Returns and Affordable Care Act

The Affordable Care Act might be affecting your tax responsibility related to Medicare and Social Security. CPAs know how they can apply the guidelines provided by IRS to help you reduce the additional taxes. They can help you properly classify different sources so as to avoid additional Medicare and Social Security taxes.

 

Assistance with Alternative Minimum Taxes

Only a certified public accountant can help people with middle income in determining whether they have to pay Alternative Minimum Taxes and how much do they have to pay. The rate of exemption for the taxpayers is different for married people, divorcees and widowers.

 

Dealing with Tax Deductions

The missing available deductions are becoming more costly every year with the increase in the top brackets every now and then. A certified public accountant can help you recognize the deductions that you might need to reduce your overall tax bills.

 

 

 

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