Today on MP, I’m sharing my personal tax experiences in my 20’s, which have been confusing, and why you need to hire a tax pro.
Photo by Elliot Janssen
Taxes can either be a great thing or they can suck, if done wrong. If you follow me on Instagram, you know I’m super Type-A and organized about finances – especially preparing for things like tax season. My file cabinet and my binder are my BFFs and I have envelopes with receipts to save all year for my business expenses, etc.
The Tax Reform that was just passed has already started to make a small impact, so it’s important you understand what’s going on – even if you’re in your early 20’s. Things that you’ll need to think about for next year are deductibles (bye itemizing), what you paid income tax on; did you buy a new car, house, etc. and even charitable giving.
Although next year will be more confusing because of the Tax Reform changes, this year is still equally important. You might think you’re golden to go on Turbo Tax and fill everything out – and you may be – but I value my tax appointment greatly. I actually figured my taxes myself before going, and although my mom and I were $10 off (killin’ it on the financial game), I didn’t figure state income tax and my tax lady was able to get me a few hundred dollars more back.
If you’re questioning making a tax appointment, here are five reasons why you should hire a tax pro:
- Income from multiple states. When I moved back from Chicago, I had income from both Illinois and Nebraska. It was confusing and state income tax rules are different in two places.
- You bought a house and you have no idea what you can take off your taxes. Your tax pro will help you know how something called points works and what you paid to the bank vs what you didn’t. This still doesn’t make sense to me.
- Funds. Did you take out of any funds or have an increase in any investment accounts? Did you inherit anything?
- Tuition. Are you paying tuition of any kind? Do you know how to handle it on your taxes?
- Your tax pro can estimate what you need to do differently next year with the new tax laws. If you don’t want to worry about learning them yourself, a tax professional can look at this year’s income and returns and tell you what sections you can change or what your return will look like for 2018 taxes. This, to me, is the biggest benefit.
So, if I haven’t convinced you now, be sure you research that you’re inputting everything correctly on your own. You may spend $150+ having your taxes done, but your return/understanding will be greater!
ALSO – GIVEAWAY
Head over to my Instagram to win TWO VIP Tickets to Omaha Fashion Week!