Does it make sense to hire a CPA to do your taxes?
If you have form 1099 income of self employment where no withholding was taken out, it important to remember there is not only income taxes but more importantly self employment taxes. The income taxes are not usually so high. It is the self employment taxes or social security taxes on top of everything that costs. And your business expenses come off of this income, dollar for dollar. You can itemize these and also take the standard deduction on your tax return.
Don’t be confused thinking you just get the standard deduction. You get both when you have to report business income.
So it makes sense to hire a CPA to help you get every one of these business deductions, that often often others miss.
If you have rental property, it can be complex and easy to miss many deductions. Consider using a CPA to get all of your deductions.
If you have a business, it often makes sense to look at incorporating and often only a good CPA can advise you of which type of business and make the proper election correctly. Many businesses making a net income of over 25,000 net per year can save lots of social security taxes.
Got a problem a problem, or a question? Call a good CPA for the best answer.
