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Taxes Do Not Have to Break Your Bank

As Dave Ramsey says in this video, and you may have seen if you follow our page on Facebook, cheap and easy tax software tends to cost people additional $700 on their income tax bill than those who use a tax professional.

Why does a tax professional save you money on your taxes? There are multiple reasons that a tax professional saves you money on your taxes.

  • Understanding Write-Offs – A tax professional helps you ask the right questions to understand whether an expense, donation, or volunteer activity is part of your tax equation. When you are doing tax preparation on your own with software, you do not know the questions going in to determine whether certain things should be reported on your tax return.
  • Strategic Tax Thinking – Are you currently thinking about the depreciation costs of your computers? Your cars? Are you thinking about the tax benefits of maintenance on a home office? On a required work vehicle? Understanding a good strategic approach to taxes is something a professional does every day of tax season, and even throughout the year at Little Giant Tax Services.
  • Understanding Wages vs Tips vs Business Income – If you are not studied on the rules the IRS puts in place, it can be very difficult to accurately claim your various types of income. This in turn can cost you more in taxes as expenses are included in your tax equation at different points depending on the type of income you are claiming.

So, if you are going to use a tax professional, what should you look for in your tax pro?

  • Location – Your cousin’s sister-in-law may be starting a tax service, and you may be willing to sit with her at your kitchen table, but you will not get the advantage of a seasoned tax pro. Look for tax preparers who have their own house in order first, including a physical location.
  • Experience – An established business in a consistent location logically has experience to back it up. But, you should double check the qualifications of your individual tax pro as well as the experience of the business.
  • No Warning Signs – As we discussed about the IRS’s tips for choosing a tax pro, there are several warning signs that mean you should avoid when selecting a tax professional. Read the linked post for more information on the warning signs you should avoid and how Little Giant Tax Services provides peace of mind.
  • Specificity – If you are a medium to high income earner with some investments on the side, a small-business tax pro may not be the best fit. Your tax preparing professional needs to have general experience as mentioned above but also have specific experience related to your unique business needs.

Tax preparation services must provide a unique, customized, professional product for every employee who walks through our door. Is it any wonder that Dave recommends you use a tax pro?

Come by our office at 303 Black Street or give us a call to set an appointment with your experienced tax pro today.