From the new IRS “Free File” software, to the plethora of online tax filing companies, it’s easier than ever for you to file your taxes from the comfort of your own home. In 2019, more than 57 million returns were filed using online or using downloadable tax software. Just because filing online is easier than ever, it doesn’t make it the most cost-efficient choice. For small business owners, entrepreneurs and investors, it’s likely that working with a certified public accountant (CPA) who truly understands tax law and how to use it to your benefit will save you more money as well as your sanity.
Know the deductions you qualify for
The Tax Cuts and Jobs Act of 2017 was the biggest tax reform the U.S. has had in the last 30 years and people are now seeing the effects of the new laws. Luckily for you, CPAs live and breathe tax law and know how to utilize the deductions you qualify for. For example, if you’re self-employed you can write off your home office, car registration fees, airline baggage fees, tax preparation fees and more. Tax breaks add up and can create big savings for you on this year’s return.
Avoid mistakes that cost you
Filing your own taxes can lead to mistakes that many CPAs are trained to look for. Whether you’re missing out on deductions or credits, using outdated write-offs, or filing the wrong forms, these errors could be causing you to pay unnecessary taxes. CPAs will work with you closely to review that your returns are accurate and mistake-free.
Create a long-term plan for ultimate tax savings
Tax planning is a critical component to save on taxes and create wealth. By getting a full picture of your current situation and future goals, you reduce impulse decisions that could add to your tax burden the next year. In addition, identifying upcoming changes in your life or business and strategically planning around them allows you to legally reduce taxes and reap the rewards.
Taxes can make you rich or they can make you poor. Utilizing tax law to your advantage can provide huge savings that can be put toward creating wealth. Try working with a CPA this tax season and experience the benefits firsthand.
Tom Wheelwright is a CPA, CEO of WealthAbility, Best-Selling Author of Tax-Free Wealth (Rich Dad Advisors Series), Speaker, Entrepreneur and Host of 2 popular podcasts: The WealthAbility Show with Tom Wheelwright CPA and The WealthAbility for CPAs Show.