Self Employed? – Here’s 5 Reasons Why You Need An Accountant

For the self-employed, tax time can be an entirely different experience than for those who are either employed by another company or own their own business. Being self-employed means that you are technically both an employer and an employee, and are at times responsible for paying taxes on issues that affect both.

Taxes are already complex enough for the average individual, but that situation is exacerbated by your current status. As a result, it may be wise to talk to an accountant, as they can not only find special deductions and benefits, but save you the time and anxiety of having to figure out your tax status.

1. Special Rules

In the United States, every working individual is responsible for paying tax for Social Security and Medicare. However, the amount of tax paid is typically split between the employer and employee, whereas with a self-employed person they are responsible for both. This is just one of a number of different rules and forms that change as a result being self-employed. Having a certified accountant will help you sort through the brambles and not have to worry about an audit.

2. Loopholes and Tricks

Regardless of what type of situation you are in, it’s never a bad idea to consult an accountant as they are far more educated on how to maximize your tax return. Every year the government passes legislation or makes changes to the tax code that affects businesses of all types. Special credits and other tax friendly programs may also be introduced but not publicized to the general public.

Accountants are paid to keep abreast of such situations and how they apply to their various clients. In fact, many of the special tax benefits and tricks apply specifically to those who own a business, and having an accountant experienced with the self-employed may end up saving you far more than the cost of the hiring one.

3. Time

Even if you are willing to sift through the morass of new forms, rules and special deductions and exemptions, the one thing you will inevitably lose is time. Paying an accountant to do your taxes will save you time to concentrate on running your business. Depending on how much income you can generate with that time, it may be that it’s more cost effective to earn money to pay for an accountant than do your taxes for free.

4. Advice and Audits

Accountants can also be relied upon for advice as to how to avoid certain tax penalties or qualify for specific deductions or exemptions. For example, as you can deduct equipment purchases over a single year or over a extended period of time, you can consult them on which deduction works best for your business. If you are by chance audited, a qualified professional can assist you with the process.

5. Online Alternatives

For some self-employed individuals, it can be very difficult to pay for an accountant given their limited financial resources. Relying on an accountant, however, doesn’t necessarily mean relying on a living person. Accounting software can be just as adept at finding the best deductions provided you give it the information they require.

As a result online software is best reserved for those that have relatively simple situations, especially self-employed individuals who will likely be using the standard deduction for much of their taxes.

John Hill writes on behalf of Public Liability Insurance dot org an online resource for business insurance including childrens liability insurance.

Saving Next Year’s Taxes with the Help of This Year’s Taxes

Saving Next Year’s Taxes with the Help of This Year’s Taxes

Are you getting angry after filing an extension or paying taxes? Be smart man; you can save some money on this for the coming year!

Many people consider filing taxes and their preparations as a painful activity. There is no fun in it. Ah, it’s not enjoyable either. One reason may be that you somehow find a part in the process which could possibly lead to more credits or deductions. What you realize is that you should look into your finances carefully to minimize some expense areas; mind … Read more at 2009 Tax.

Saving Next Year’s Taxes with the Help of This Year’s Taxes

Are you getting angry after filing an extension or paying taxes? Be smart man; you can save some money on this for the coming year!

Many people consider filing taxes and their preparations as a painful activity. There is no fun in it. Ah, it’s not enjoyable either. One reason may be that you somehow find a part in the process which could possibly lead to more credits or deductions. What you realize is that you should look into your finances carefully to minimize some expense areas; mind you, there is a chance for you next year. But after about one month or so, you will see this hope starting too faded off. However, you should prevent it from happening.

Now is definitely the best time for you to plan for saving on your taxes next year. After getting done with your tax filing, you will come to see the areas that need more attention. Even if you couldn’t figure it out, you would definitely feel like paying more than what you should have paid. A little bit of tax planning is necessary for in order to avoid this.

Relax and stop moaning. It might feel boring, but tax planning is very exciting once you start taking it in the right manner. Will it be exciting for you to know that a trip to Vegas can actually bring in $ 2000 to your account? Definitely it would, right? Well, tax planning does exactly this. It helps you to focus on the money that you will be saving.

You need one proactive accountant to start your tax planning. Even though they are expensive, they will help you save a lot in the long run. It always creates a win-win situation for you and your business.

You always want a proactive CPA. Their job is to look at the tax return and suggest where you can save more money as per IRS guidelines. Then you want to know what your savings would have been last year, had you followed the same steps. This can definitely be very painful, but at the same time it is motivating once you start focusing their plans.

No doubt, paying taxes was not a good experience for you this year. By analyzing it carefully and finding out as much information as you can, next year will definitely be better.

Hire a Lawyer, not an Accountant, to file Income Tax Returns

Hire a Lawyer, not an Accountant, to file Income Tax Returns

Failing to report under the table business income is likely to make one feel uneasy, or even guilty. It is also possible that you skipped filling your income tax returns even though you are aware of the legal responsibilities in respect to this. To rectify the situation, you might be considering hiring an accountant.

While it is appreciable that you are on your way to set things straight, stop and think whether or not you are making a big error by getting an accountant to help you deal with … Read more at 2009 Tax.

Hire a Lawyer, not an Accountant, to file Income Tax Returns

Failing to report under the table business income is likely to make one feel uneasy, or even guilty. It is also possible that you skipped filling your income tax returns even though you are aware of the legal responsibilities in respect to this. To rectify the situation, you might be considering hiring an accountant.

While it is appreciable that you are on your way to set things straight, stop and think whether or not you are making a big error by getting an accountant to help you deal with the issues of delinquent taxes. The reason for this is that tax evasion is considered a criminal offence or felony. Defaulters might find themselves faced with civil action as well.

Would you consider getting an accountant to defend you if you got caught robbing a bank? I’d venture to say you most definitely would not. A much wiser decision would be to invest in the services of a capable attorney.

One advantage of hiring an attorney in this context is that they have solicitor-client privilege (alternatively referred to as attorney-client privilege or legal advice privilege). This implies that the information with regards to income tax returns or delinquent taxes that the client divulges to his lawyer remains strictly between the lawyer and the client and cannot be used against the client. Written records are also included in the gamut of solicitor-client privilege.

Comparatively, if you hire an accountant to help you deal with matters of delinquent taxes, he might, at some stage, be compelled to testify against you and is obliged to hand over a complete of the records he possesses pertaining to the case upon request.

Your lawyer also has the ability to create a legal document that would protect you. Since you are coming clean, the tax authorities may refrain from slapping criminal charges on you and might even waive or decrease penalties or tax liability.

If your accountant, on the other hand, attempted to achieve the same end, every bit of information about you might need to be divulged. Your accountant would not come under the protection of the solicitor-client privilege.

If you hire the help of an accountant, the tax authorities might charge you with tax evasion even if you are trying to set things straight by filing your tax returns from, say, ten years back.

In fact, concealing your delinquent taxes might place the accountant in a precarious situation. The reverse is true when you choose to let an attorney handle this for you. Your lawyer cannot be legally forced to give testimony against you, thanks to the solicitor-client privilege protection. It is highly possible that your lawyer would have his personal accountant to help deal with the concerned issues.

Since you would hire a lawyer specializing in criminal and tax law, he would be cognizant with the process of negotiations with the tax authorities before filing your tax returns.

If you feel that there is a good chance of you being charged for a criminal offence owing to delinquent taxes, it is better to steer clear of accountants. Alternatively, hire a lawyer who is highly knowledgeable in these matters when you set out to file or amend tax returns.