It’s that time of year again, when tax documents land in our mailboxes and ads for tax software litter our email inboxes and social media feeds. If you’re wondering whether you should do your own taxes or hire accounting and tax professionals, the answer (as with most financial decisions) is: It depends on your situation. Generally, the more complicated your return, the better off you’ll be going with a pro.
Following are the scenario when you should you hire tax professionals in California:
When you own a business, you don’t have an employer withholding taxes from your paycheck each month. You’re responsible for tracking income coming in and deductible expenses going out, as well as for making estimated tax payments every quarter.
You own rental property
A tax return with rental income can get tricky. Special rules govern depreciating rental property and claiming losses from rental activities. A tax pro can help you claim your rightful deductions.
You’ve had a big life event
Major life events such as getting married or divorced, having a child, moving out of state, starting a business, buying or selling a home or investment property, or receiving an inheritance can have a significant impact on your tax situation. These events can affect your filing status, the number or type of deductions and credits you can claim, and the forms you need to attach to your return. These are good times to seek out expert advice.