Signs It May Be Time to Hire an Accountant

Posted on: 19 April 2016

Handling your own taxes is typically legal and acceptable and is perhaps even the most popular choice for many individuals in many areas. While you might think it's the best option since it means saving the cost of hiring an accountant, sometimes it's better to rely on the services of a professional. Not only can you be assured that your taxes are done right, but you might actually wind up saving more money in the long run! Note a few signs that it may be time to hire an accountant to handle your taxes every year.

1. If you have income from more than just a standard job

Do you regularly or did you recently earn income from capital gains, investments, spousal support or even gambling? Are you self-employed or do you run a small business that isn't incorporated or a partnership? If so, it can be difficult to know where and how to claim these things on your taxes.

Not only do you need to know where and how to claim these forms of income, but you also need to know how to claim other types of deductions. As an example, if you had large earnings from gambling, you may also be able to claim any losses you had at the casino. If you need to claim income from investments, you might also be able to claim investment losses as deductions. An accountant can go over all those details with you and ensure you know what income to claim and how to claim it properly, while also ensuring you're taking all the deductions that go along with those forms of income.

2. If your personal situation changed significantly in the past year

If you went from single to married this year, your taxes may not become overly complicated. However, do you now share custody of your children after a divorce? Did you lose custody of your children altogether? Did you have a marriage annulled? Did you split your time between different states or even live in another country for many months out of the year? Did you move permanently from one area to another?

These situations can be complicated to understand when it comes to how they affect your tax situation, as it may not be as easy as simply changing your filing status. If your personal situation changed significantly at all this past year, it's good to have an accountant do your taxes; they can explain how these changes affect your tax returns so you can know how to handle your taxes in the coming years.