4 Advantages Of Using A Tax Preparation Service When You're Self-Employed

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Many people do their own taxes, which is every American's right. When your taxes are straightforward and simple, doing your own taxes can save you money. However, some tax situations can be complex, and if you do them wrong, it could cost you far more than what a professional charges. For example, people who are self-employed often have a complex tax situation. Here are four benefits of using a professional tax service when you work for yourself.

1. A Professional Tax Service Provides Security

Math is not everyone's forte. If you make one computational error while doing your taxes, every figure is wrong. When you use a professional tax service, you don't have to worry you messed up somewhere along the way.

While the IRS may be forgiving of simple math mistakes, they'll let you know if you made a mistake to your advantage and will expect their money pronto. Conversely, if you overpaid, don't bet on receiving a refund for your mistake.

2. A Professional Tax Service Knows What Deductions You Are Entitled To

Self-employment taxes use a complicated formula to determine your tax liability. And like any business entity, the government provides certain deductions that help business owners offset the cost of doing business. Trying to figure out which deductions someone who is self-employed is entitled to can be difficult and frustrating, however. When you use a tax professional, they take care of this for you.

3. A Professional Tax Service Can Make Sure You Plan for Your Tax Bill

People who are employed by a company don't need to worry about their tax liability at the end of the years. Payroll deductions are automatically taken out of your paycheck every week or two.

When you work for yourself, you are expected to determine and make the deductions yourself. This is easier said than done, and even if you do set aside enough money, it can be tempting to not use it when emergencies arise or business is slow.

A professional tax service will set you up on a schedule to pay your self-employment taxes quarterly, which is what the federal government expects but many fail to do, waiting until the end of the year instead. This can result in people being short, a dangerous game to play with the Internal Revenue Service.

4. A Professional Tax Service Could Be Deductible

Business owners and self-employed people are allotted miscellaneous deductions. One of those miscellaneous deductions could be the price you pay for using a professional tax service. Receiving expert tax advice and being able to deduct it from your tax bill is a no-brainer.

Take advantage of tax preparation services near you.