Taxes are complex, which is why many taxpayers cannot do without the aid of a tax preparer when filing their returns. It is however, not wise to assume that the preparer can handle everything for you; you should ask questions and seek clarification on tax related matters that might appear unclear.
Asking your tax preparer tax related questions can help avert later complications that might arise with your taxes. They can be simple informative questions or inquiries on the coming year’s returns. A serious tax preparer must always have the time and ability to answers all the burning questions with ease.
To begin, ask general questions to get a broader picture on your taxes and future. You can later ask more specific questions. Listed below are some questions that any serious taxpayer will seek answers for from his or her tax preparer:
Retirement Related Inquiries: Are there are any proposed changes on your retirement plans for the following year? When do you think you will start drawing your securities? Generally, find out if retirement is in the following year’s tax plans from the preparer.
Divorce, Marriage and Children: Divorce or marriage can affect any anticipated refunds; find out how by asking your preparer. Are you planning to have a baby? What effect will a baby have on your taxes? What if your child eventually goes off to college or finds employment? These are issues that will alter your tax filing the following year and must be clarified.
Any Plans to Start a Business? – If you have plans to set up a business, what tax-related records are essential for the preparation? Further information can always be sought later during the implementation of the business idea.
Tax Consequences of 401K or IRA withdrawals: Do you plan to make any of these withdrawals the following year or taking a loan from your 401K? If yes, then you obviously would like to know how your taxes will be affected.
Any Credits and Deductions You Qualify For? – Have you seen any tax credits in the news and you want to know whether you qualify for any? Ask whether you qualify or not. Remember any tax credit helps bring down your overall taxes.
Your Tax Return Questions: Read through your returns and seek clarification on issues that are not well projected as they should, or appear complex to you.
Paying Any Penalties? – A penalty can be triggered by a huge balance due. Do you have to alter withholdings or make any estimates?
The only way to stay informed about your taxes is by asking your tax preparer any questions that you have. As much as good tax preparers try to clarify issues they deem important without being asked to, there is no way one can read what is in your mind. Make your tax preparer’s work easier by asking questions.