Tax accountants are professionals trained and certified to help ordinary people like us with our tax needs. But then, you don’t have to be a tax accountant to file your taxes. All you need is a little knowledge.
Some people know a little more than the rest of us. They are the family members we turn to when Tax Day approaches. You might just be one of them! If you possess one or more of these signs, you may just be on your way to expert status.
You know all the requirements.
The hallmark of a proficient tax preparer is knowledge of the process. You may know about all the forms and how to fill them, all the possible exemptions, and even how to extend your submission date. You may also be aware of the requirements most people seek professional counsel for, like how to claim tax deductions and get cashback. If all this applies to you, you may just be a tax accountant in the making!
You’ve explored additional resources.
If you’re expanding your knowledge with free or paid resources, you’re definitely on the expert fast track. The Internet is filled with resources, from blog posts like Small Business Taxes for Dummies to tax calculators and PDF guides.
You may also be taking some IRS-endorsed courses created for taxpayers to broaden your understanding of the tax process.
You’re ready weeks before Tax Day.
If you frequently procrastinate filing your taxes, you’re just like everyone else, so don’t worry. But then, if you’re one of the few who are ready long before Tax Day, you may be more skilled at taxes than you thought. For many people, filing their taxes requires more than just desire; they also need know-how.
Your readiness shows that you have both these factors and more. It also shows that you’re organized enough to keep your receipts and essential documentations. Of course, filing your tax early could also mean that you have someone doing it for you, in which case, it doesn’t count.
You know how to avoid getting audited.
Most people won’t get audited in their lifetime, especially individuals who earn a modest income. This assumption is based on studies showing that individuals/households who earn more than 1 million USD annually are much more likely to get audited.
But then, you probably already know this statistic. The numbers suggest that high-income earners tend to lie and cut corners on their tax returns. These are all practices that raise red flags at the IRS. You probably also know what these red flags are, and you’re very capable of avoiding them.
You have rich contacts.
You may have heard that it’s not about what you know, but who you know. This saying rings true when applied to delicate matters like filing taxes. All of the above points may apply to you, or none of them. But then, as long as you know who to call when you’re in trouble (getting audited, can’t find your receipts, can’t make it on Tax Day), you’re an expert.