The 2019 tax season is the time where Americans file their 2018 tax year. It is where the major tax legislation, Tax Cuts and Jobs Act of 2017 (TCJA), goes into effect when they file their 2018 taxes by April 2019. It made several significant changes but it’s not all good news for taxpayers. Will it make your tax simple or just more complicated? Well, maybe it’s already the time for you to hire an Enrolled Agent to help you in your tax.
Below are 5 situations that will help you decide when to hire an EA.
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You’re Self-Employed
According to Cambridge Dictionary (2019), Self-employed is defined as:
- having your own business and working for yourself rather an employer;
- not working for an employer but finding work for yourself or having your own business.
Thus, you would not be withheld taxes from your paycheck because obviously, you don’t have an employer. You, as a self-employed, would be responsible on the cash inflow (income) and cash outflow (expenses) on your work or business and also making estimated tax.
If you don’t have a good understanding and knowledge about your taxes, its deductible expenses, accounting for inventory and etc., maybe you should hire an Enrolled Agent who does know and will surely make your life less stressful.
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You’ve had a big life event
Let’s enumerate some big life events that will need the attention of needing the help of an enrolled agent:
- Changing address
- Getting married or getting separated/divorced
- Arrival of children
- Starting your own business
- Buying or selling property
- Having lots of investments and etc.
Having these big life changes could also mean big tax implications. Hiring an expert will not only point out taking advantages of valuable deductions and credits you can claim but also determine the best way to keep tax trouble at bay.
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You own a rental property
Some people often rent out their property as a source of income and sometimes gets tricky when associated with the tax. There are also special rules that govern rental properties in depreciation and also claiming losses. An Enrolled Agent will help claim your deductions and avoid sweat at a tax time.
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You have foreign bank accounts, investments, or income
Foreign businesses may be taxed differently in the U.S. Foreign bank accounts and investments sometimes require more tax-filing requirements. As a US citizen or resident, you are required to report all your income within and outside the country. And investment income has many complex federal and state rules and treatments including the claiming of foreign tax credit paid in other countries. Following the rules and treatments are very important in order for you to not be penalized. If you have a financial foreign interest, or you earn income from other countries, it is good to work with someone who has expertise in handling these situations. Think about the greater benefit you’ll get.
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You are being audited/made a mistake on previous tax year
It is inevitable to make mistakes with today’s complicated tax rules. With a simple mistake, you can file an amended return using the Form 1040-X. However, if you are too late and caught by the IRS, there are penalties you need to pay. Even IRS makes mistake, so help from an EA will confirm whether the IRS’s assessment is correct and help you respond appropriately.
However, if you received a notification from the IRS that you are going to be audited, don’t panic. Help from your trusted EA will help you put at ease. Are you still wondering when to hire? While the question depends on each situation, hiring an enrolled agent will provide you peace of mind.
If you are thinking of hiring an enrolled agent, contact us today at admin@fas-accountingsolutions.com or (832) – 437 – 0385.
