When to Hire a Tax Accountant for your Personal Tax Return
Like many working professionals today, you may feel undecided about hiring an accountant for your next personal tax return. Perhaps you are persuaded by the convenience of a professional taking care of your taxes, but also feel you can handle the task on your own.
Just because you can file your own taxes does not necessarily mean you should. The good news is you are not alone in the uncertainty. Continue reading to learn about the particular situations when hiring a professional accountant for your personal tax return may be in your best interest.
You are self-employed
Filing a personal tax return becomes much more complex when self-employed earnings are involved. Which deductions can be claimed? How do you best separate personal expenses from work? Allowing a professional to file your taxes not only eases the burden, but can also assist you in organizing your files for next year.
Your family structure has changed
Did you get married or divorced this year? Perhaps you welcomed a child into the family? These major life changes can result in significant implications for your next personal tax return. Marriages and separations often involve the transferring of funds and assets, which must be noted on your return. And as you continue to grow your family, further tax credits may become available to you.
You are planning ahead for retirement
A good tax accountant can also help you manage your money in planning for the future. You’re working hard for your retirement–why lose more income than necessary come tax season? Learn how to invest your earnings wisely and take best advantage of your RRSP contributions for your golden years.
You purchased, sold, or renovated property
Did you renovate or buy a new home this year? Did you sell an investment property? A trained accountant will help you take advantage of tax credits and minimize the capital gains on your sales, while assisting you in planning for the years to come.
Rental properties are also considered personal income and must be included on your personal tax return. Whether you operated at a profit or a loss over the year, a tax accountant can identify opportunities for reducing your taxable income.
You don’t have the time to do it right
Let’s face it, we all have something better we can be doing instead of filing our taxes. As the Canadian tax laws are constantly shifting, staying up-to-date on regulations is critical. A qualified tax accountant is aware of the current laws and credits to maximize deductions and ensure the most successful return possible.
Unlike tax preparers who are often disappear at the end of tax season, a qualified tax accountant will be with you all year. In the unlikely event of an audit, you can rest assured knowing your accountant will stay by your side.