3 Reasons Self-Employed People Should Pay For Tax Services
Doing your own taxes is generally a hassle, but it can be even more difficult and time-consuming when you're self-employed. Self-employed people have to pay income tax as well as self-employment taxes. Unlike employees, when you're self-employed you are supposed to file your taxes quarterly. In addition, self-employed people should take advantage of tax write-offs to cover some of their business expenses. This all leads to a more complex tax situation.
Professional Tax Services Can Save You Money
One thing tax services companies are very skilled at is finding ways to save you money. They will know all of the business expenses you can write off, as well as any tax credits, deductions, or refunds you are eligible for. They are up-to-date on any new tax benefits passed by the government. Your tax professional will also ensure your quarterly taxes are always filed promptly, which can prevent you from having to pay late fees and other penalties.
Professional Tax Services Can Protect You Legally
Self-employed folks are at a higher risk of being audited by the IRS, which can lead to a lot of stress as well as financial penalties if the IRS discovers discrepancies in your taxes. Hiring a professional tax preparer protects you in a couple of important ways.
For one thing, your tax preparer is an expert on all tax regulations and will file your taxes accurately and thoroughly. This means if you are audited it can go smoothly. In addition, most tax services companies offer free audit assistance to their existing clients. In the event that you are audited, your tax accountant will manage the process for you, submitting all necessary paperwork and ensuring you avoid fines and other penalties.
Professional Tax Services Save You Time
Being self-employed means you are likely always busy, especially if your business hasn't yet grown to the point of being able to hire employees. The average person spends more than 20 hours working on their taxes, and this number is likely even higher for the self-employed since their taxes are more complicated.
By handing off your taxes to a trained expert, you can save yourself many hours of work and stress, and put that time back into your business and personal life instead.
Hiring a professional tax service to handle your taxes for you will give you peace of mind, save you time and money, and leave you free to focus more on your business endeavors.