When it comes to filing taxes as a 1099 contractor, it’s essential to choose the right tax professional to ensure that you get the most out of your taxes and don’t end up owing Uncle Sam more than you should. It’s always a good idea to stay on top of what you owe, whether you pay quarterly taxes or wait for your annual tax return. This will ensure you don’t end up like millions of Americans stressed out because they’ve accumulated back tax debt.
A tax professional covers any professionals working in taxes, such as CPAs, accountants, tax attorneys, and enrolled agents. The type of professional you hire depends on the type of help you need.
For filing tax returns, you would likely consult the help of an accountant, whereas if you need assistance with resolving tax debt or preparing for an audit, you will consult a tax attorney or enrolled agent. And lastly, CPAs can help with tax advice for complex business planning and structure.
Need help with filing taxes or resolving tax debt now? Contact us to speak with one of our reliable and experienced tax professionals today.
Let’s explore why hiring a tax pro is beneficial, plus some tips for choosing the right one for your 1099 tax filing needs.
Why Should You Hire a Tax Professional?
As a 1099 worker, you face a unique set of challenges when it comes to filing your taxes. You may find yourself juggling multiple income sources and deductions, you may not be sure what tax forms to use or how to report your income and expenses properly. If this sounds like you, then it might be time to consider hiring a tax professional.
A tax professional has experience and knowledge in filing taxes. They can provide the guidance you need to ensure your taxes are done correctly and on time. Here are the top reasons you should hire a tax professional if you file a 1099 tax return.
A Tax Pro Has Knowledge and Expertise
A tax professional has the knowledge and expertise to help you understand the complicated tax laws and regulations associated with filing taxes as a 1099 worker. They can advise you on how to take full advantage of any deductions or credits available to you and can ensure that your taxes are filed accurately with the correct tax forms. If you’re preparing for an audit, have fallen behind on your quarterly or annual payments, a tax pro can help get you back on the right track.
Hiring a Tax Pro Saves You Time
As a 1099 worker, you may juggle multiple income sources and expenses. This can make filing taxes a very time-consuming task. A tax professional can help you save time by handling all the paperwork for you and ensuring that your taxes are filed correctly and meet the specified deadlines.
A Tax Pro Helps You Avoid Penalties
Filing taxes incorrectly or late can lead to hefty fines and penalties from the IRS. With a tax professional, you can avoid these penalties because they know the IRS guidelines and stay up to date on any changes. Unfortunately, it is a common occurrence that many Americans fall behind on their payments every year and may face harsh penalties. Hiring a tax pro can help you reduce or avoid such penalties.
Hiring a Tax Pro Will Give You Peace of Mind
Knowing that your taxes are in the hands of a professional can give you peace of mind. You can rest assured that your tax pro will tell you exactly what you need to file your taxes accurately, prepare for an audit or resolve tax debt. This way, you can return to focusing on your family and work.
Helpful Tips for Choosing the Right Tax Professional
Know Your Tax Needs
Before you start your search for a tax professional, take the time to assess your tax situation and determine what you need from a tax professional. Do you need help filing your returns, understanding the tax laws, or someone to help you resolve tax debt? Knowing exactly what you need will help you find the right tax professional.
Take the time to research each tax pro. Visit their website, read online reviews, and see if they are a member of any professional organizations. This will help you get an idea of their qualifications and experience.
Look for Specializations
When you’re looking for a tax pro, it’s important to look for someone who specializes in the area of taxation you need help with. For example, if you’re a 1099 worker, independent contractor, or self-employed, you’ll want someone who specializes in this area since the tax return process is much different than W2 income. Or maybe you have unresolved tax debt and need a professional who works directly with the IRS to help you avoid penalties, wage garnishments, or bank levies.
Once you have narrowed your list of potential tax professionals, it’s time to ask questions. Ask about their fees, their experience, and the services they provide. You should also inquire about their availability, as some tax professionals may be unable to provide you with the help you need during tax season. It’s an even better idea to start your research 3-6 months ahead of tax season. Summer and fall would be the best time to start contacting them.
Check References and Testimonials
Ask the tax professionals you are considering for references from past clients. This will give you an idea of their level of service and how satisfied their clients were with the services they provided.
Once you have done your research, it’s time to decide. Choose a tax professional who checks off all your boxes, and you feel comfortable with.
Choosing the right tax professional can make the difference between a successful tax season and one that leaves you feeling overwhelmed and uncertain. Take the time to do your research and ask the right questions, and you’ll be sure to find a tax professional that can help you get the most out of your taxes as a 1099 contractor.
At Justice Tax, we have helped thousands of hardworking Americans with their tax needs and tax issues. We specialize in tax preparation and tax relief for 1099 independent contractors, self-employed individuals, and owner-operators. Contact us today for a free consultation.