Now that tax season has begun, many people are considering whether or not they should hire a Certified Public Accountant (CPA) to help them get more from their tax returns. And with good reason, CPAs can provide valuable assistance during this time. Here are some ways that a CPA can help you to maximize your tax refund:
Claim Your Credits
Tax credits are a dollar-for-dollar reduction of taxes that you owe. Most people who have a moderate to low income may qualify for the Earned Income Tax Credit. There are some requirements that you must meet to be eligible for this credit, and to get it, you must file a tax return (even if you don’t owe taxes.) While this may seem complicated, a CPA will be able to help you claim these credits.
Determine Whether You Qualify for Deductions
It is vital that you don’t miss any tax deductions, as finding only one missed deduction can make a big difference. In fact, if a CPA can find a large enough deduction, it might just be enough to cover their fee. The more deductions they can find, the higher your return will ultimately be.
Help You File Your Income Taxes
A qualified CPA will be able to help you determine the best filing status. Choosing the best filing status for you can significantly impact how much your refund will be. The status you choose will determine your standard deduction, filing requirements, the credits you qualify for as well as your tax refund.
Correct Any Errors.
Having a CPA on hand can help you avoid any mistakes or commit unintentional fraud. Besides this, they can also help you create a budget plan if you have unpaid taxes. This will help you work out a payment plan with the IRS for your taxes to save more money. Ultimately, your CPA will be able to keep track of costs and financial planning so that you don’t have to.