Tax season is just around the corner, and as your financial history evolves, there comes a time when an online tax filing service isn’t sufficient for your needs. To assure the information you file to the IRS covers every aspect of your life, you can enlist a CPA to handle a variety of life events. 

Times When a CPA Can Help

1. You Have a Small Business

CPAs receive their license through a comprehensive exam, and a considerable part of this test is knowledge of the tax code. As your small business grows, you will want to have this professional assistance by your side when tax season comes so that you avoid the risk of an audit from the IRS. 

2. You Earn More Than $200K Annually

Top earners are more likely to get audited due to the breadth of their financial portfolio, and CPA can help you avoid this hassle. If you do have to handle an audit—or even just a substantiation of expenses from the IRS—a CPA will know how to navigate a claim from this complex government agency. If you hand the IRS the wrong information, a simple inquiry can turn unnecessarily into a big deal. Their expertise can help streamline this issue. 

3. You Have a Multiple Income Streams

When you have multiple sources of income to report, it’s essential to have a tax expert at the helm to assure you avoid any issues. If you’ve recently acquired a rental property in the last year, for example, it can be tricky to work out what deductions you’re entitled to from this new income source. A CPA can work out how this piece fits into your taxes for your first year as an owner and beyond. Investments are another source that requires thorough reporting in your tax filing. 

4. You Are Interested in Estate Planning

When planning your will, a CPA can be a useful addition to your estate planning team. While an attorney can work out the legality of this important document, a CPA will use their tax knowledge to predict how much your beneficiaries will pay in taxes and whether you’re capitalizing on all available tax deductions.

5. You Have a Child Going to College

When you’re planning for your child’s future, a substantial expense can be their college fund. A CPA can help you structure the savings for this expense in a sustainable way.

If your child also plans on using FAFSA to help pay for college, there are a few assets that could hurt their chances for federal aid if it lies in their name. If they have a 529 plan or are a co-owner in your family business, you will want to contact a CPA to understand the financial implications of these ties. 

A CPA’s licensed credentials set them apart from standard Enrolled Agents, which makes them more qualified to handle your taxes and more complicated financial tasks. In Texarkana, TX, residents have trusted Selph and Friday, CPA, for over 30 years with their accounting needs. From tax preparation to IRS representation, their team of Texas-licensed CPAs will simplify these stressful processes and deliver the best possible outcome. For more information about their full range of accounting services, call (903) 792-0281 or visit them online today.