If you’ve been in the workforce for any time, you are probably familiar with the importance of personal tax accountant service near me. They’re not just there to lend a hand if you get audited or to prepare your taxes during filing season; they can provide essential guidance throughout the year regarding your business or just what kind of deductions and benefits you are eligible for.
The Value of a Personal Tax Accountant Near Me Services
While any business owner needs to have an accountant service near me or a tax professional on their team, this is especially true for freelancers. Here are just a few reasons why:
1. You can save money in the long run.
A good accountant can help you ensure you’re saving money throughout the year in ways you might not even realize, such as helping you establish a retirement plan and direct-deposit your taxes.
2. They can help you avoid costly mistakes.
As a self-employed individual, there are a lot of forms and paperwork that you have to fill out throughout the year. While you might want to be thorough, operating haphazardly can make significant mistakes. The last thing you want is an audit or an investigation into your tax returns because they don’t make sense.
3. They can offer significant tax benefits.
Given the unique tax requirements and laws associated with the self-employed, freelancers should consider going the extra mile and working with a tax professional. That can help you avoid costly mistakes and comply with the IRS.
4. You can avoid future tax problems.
Personal Tax Accountant Near Me services may cost you a little money now, but they can save you a lot in the long run. A good tax professional can help you navigate complex tax codes and ensure that your business operates within the law’s confines. Even the slightest mistakes with your taxes can lead to an audit or investigation. That alone makes it worthwhile to hire a professional who knows what they are doing.
5. They can help answer your questions.
While you might feel confident asking your accountant questions as an individual, you’re probably not entirely comfortable doing that as a freelancer. You might have different types of taxes to worry about, or perhaps you have specific tax needs that you need to address. You don’t want to ask the same question multiple times throughout the year, so it’s essential to stay on top of those details from the beginning and not just when things start getting out of hand.
6. They can help you preserve and use retirement funds.
As a self-employed individual, you may not be eligible for a 401(k) plan or other retirement account options for which you could make tax-deferred contributions. That is why it’s essential to work with a trained accountant service near me to set up plans that comply with the IRS and ensure that your clients are doing the same.
How you’re classified for tax purposes
As a small business, your responsibilities differ slightly from those of traditional employees. As a self-employed individual, your earnings are not reported to an employer to pay Social Security & Medicare taxes. Therefore, your tax withholding rate is different from that of traditional employees.
How you’re taxed on your income
Self-employed individuals pay their income taxes. Depending on the nature of their operations. They may have to pay self-employment tax in addition to federal and state taxes.
What deductions and expenses can be deducted or saved on your tax returns?
If you are a freelancer, you must keep a detailed record of your business-related expenses. An accountant service near me can offer guidance when it comes to reporting these expenses. It would help if you also spoke with your tax professional to track any charitable contributions during the year.
How you’re taxed on fringe benefits
Non-cash fringe benefits, such as paid vacation and company vehicles, are taxed differently than income. A Personal Tax Accountant Near Me can help you keep track of this type of income and know the value that needs to be reported on your tax return.
How you’re taxed for the use of your home office
If you are a freelancer who does business from your home. The IRS allows you to deduct a certain percentage of the expense of using this space as an office. That can be a critical deduction for many small business owners.
Any additional tax breaks that you might be eligible for
Freelancers and small business owners should take advantage of any tax breaks. The more deductions and credits available, the more money stays in your pocket.
The Bottom Line: Freelancers Need Personal Tax Professionals Too!
Freelancers and small business owners don’t get many tax breaks. Perks that are available to other taxpayers, in contrast to regular workers. That can make it difficult for them to stay on top of their taxes. A personal tax accountant near me can help self-employed individuals and small business owners reduce the amount of tax they have to pay by providing insight into what deductions might be available and the value of various business expenses.
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