In the age of DIY and free tax software, it can be difficult to see the value in hiring a tax service to help you when it comes time to file. Many of us are of the mindset that there’s no good reason to pay someone else for something we can do ourselves.
While this philosophy makes sense for something simple, like washing your car or mowing your lawn, tax preparation is an entirely different beast. There are a lot of inconveniences and unexpected issues you may come across filing on your own, especially if you’re a self-employed or even an incorporated day trader.
Instead, consider these benefits to hiring a professional tax service to maximize your trading dollars for you!
Tax experts will save you money.
If you’re not familiar with the latest tax codes or tax strategy specific to trading, there are a lot of potential credits, deductions, and elections you may overlook when you file by yourself. A CPA who specializes in trading will be able to identify those credits, deductions, and elections you may have missed and help you with the claiming process. This is especially important if you’re in a more complicated tax situation, such as owning your own business or having multiple dependents.
Depending on your income, you may even be able to claim the tax preparation fees you pay to your service as a deduction.
Self-filing is time consuming.
Did you know that the IRS estimates people who self-file their taxes spend about 20 hours completing the process? If you’re dealing with a special situation or more involved scenario, attempting to navigate the system on your own can take even longer.
In the corporate world (and, let’s face it, most of society) time equals money. Save yourself valuable time to use elsewhere when you hire a professional to handle your taxes.
Tax professionals are equipped with advanced training and experience.
When you enlist an expert to handle your taxes, they’ll make sure it’s done right. Making mistakes when you file your taxes can be costly, or sometimes even lead to an audit.
Save yourself that money and the trouble of dealing with the IRS by allowing a trading tax specialist to take the reins. A CPA will be informed on the latest changes in tax law that affect day traders and prepared to maneuver complicated situations, so you can make it through tax season with peace of mind.
Filing your own taxes is a hassle.
Avoid the stress of getting your taxes done and anxiety over doing something wrong when you get professional help. A tax service is a reliable, convenient option to ensure everything is taken care of properly and on time.
You may be tempted to just use a self-filing software instead, but these can be just as much of a hassle as going through the paperwork yourself. There are a lot of issues that can occur with automatic programs, and gaps in knowledge or information that can lead to problems or delays with your return. Especially when you’re in the trading industry, it’s important to work with someone who knows the ins and outs of trader tax filing.
Start planning ahead.
Not only can a tax professional help you get the most out of your current tax return, they can advise you on strategies to use year-round and save in the future. They’ll give you important information and point out opportunities for you to maximize credits and deductions throughout the year.
A CPA who specializes in trading can work with you to design a tax plan specific to your situation as a trader, meaning next year’s process will be more efficient and more profitable.
If you’re a day trader looking for tax help, you need a professional who specializes in your industry.
At Trader’s Accounting, we’ve made it our life’s work to devise and implement tax strategies specifically for active traders. Our services strive to maximize efficiency, reduce liability, and identify and take advantage of all opportunities to build your wealth.
Contact our team today for your free consultation!