The tax services you receive don’t have to end in mid-April. Long Island accounting firms offer many types of tax help that extend above and beyond traditional tax preparation. This growing trend has caught on, because it saves individuals time and money.
The Benefits of Year-Round Tax Help
Many taxpayers procrastinate until April, and then scramble to make up for lost time. This is a recipe for disaster.
If you were to hire a Long Island tax accountant all year long, they could assist with these types of important tax issues:
- Reducing taxable income
- Lowering your tax rate
- Identifying and claiming available tax credits
- Limiting the effects of the Alternative Minimum Tax
- Avoiding common tax planning mistakes
5 Situations Where you Need Year-Round Tax Services
A lot can happen in the course of year. Whether it’s good news or bad, it can impact how your income tax return is prepared.
1) Relationship Changes
If you have recently tied the knot, you will benefit from receiving tax help. At the very least, you will need to switch your state and federal income tax status from “single” to “married.” Depending on you and your spouse’s income levels, there may be tax advantages to filing a joint return.
Divorce is another time to revisit your income tax status. Since you will file an individual tax return, you may need to adjust items like your dependent exemptions, credits and deductions.
2) A Growing Family
The birth or adoption of a child is another situation where you could benefit from tax help. Each time your family grows you must claim that child as a dependent in order to receive tax benefits like the Child Tax Credit or the Earned Income Tax Credit.
3) Buying a House
Homeowners are uniquely eligible for certain tax breaks, including the home mortgage interest deduction. If you are buying a house for the first-time, accounting professionals can help you receive a bigger tax refund with a detailed itemized return.
4) Changing Jobs
A job change is another milestone in life where revisiting how you approach your annual tax return will pay off. A Long Island accountant can help you adjust your withholding status, unemployment payouts and calculate the tax impact of job loss or relocation.
5) Retirement Planning
If you are planning for retirement (like you should), it’s always smart to understand the tax implications of all the financial decisions you make. Tax pros can help you decide whether 401(k)s, IRAs, Roth IRAs or Roth 401(k)s are best for your unique situation.
Whatever your life situation may be, hiring an accountant before tax season hits will allow you to get the most bang for your buck.