2. Am I planning to itemize for the primary time?
Should you’re new to itemizing — say, you simply purchased a house in 2020 so it is the primary tax yr you are not claiming the standard deduction — then it may pay to herald an expert this time round. A tax preparer may also help just remember to declare the entire tax breaks you are entitled to, all of the whereas ensuring you do not erroneously declare deductions that do not apply to you.
3. Did my monetary circumstances change considerably in 2020?
Many individuals have been impacted financially by the pandemic final yr. If that is the case for you, then this could possibly be a great yr to get outdoors assist.
“I urge taxpayers who’ve had any form of life change to work with an skilled tax skilled this yr,” says Mark Steber, Chief Tax Data Officer at Jackson Hewitt. This consists of individuals who acquired married, acquired divorced, or misplaced their jobs and picked up unemployment advantages.
Those that took a CARES Act withdrawal from a retirement savings plan must also take into account consulting with a tax skilled. Usually, withdrawals from a tax-advantaged financial savings plan taken previous to age 59 1/2 incur penalties. These penalties have been waived final yr for these impacted by the pandemic, however there are nonetheless tax implications concerned, and an expert may also help navigate these.