Do you need to hire a tax professional in Essex County (Northern NJ)? Do you prefer someone local? If it's your first time using professional assistance for your taxes, you may be overwhelmed by your options. There are hundreds of choices, from certified professional accountants to national tax preparation chains to small, individually-owned tax planning businesses.
Which one is right for you? The answer largely lies in your tax situation and your specific needs. You can also narrow down the options by asking important questions to determine if a tax professional seems knowledgeable and trustworthy. It shouldn't be hard to find a tax planner in Essex County, but you want to take the time to be sure you've found the right one for you.
Follow these steps to drill down on a handful of potential tax planners.
1) Start early.
Remember, the goal of tax planning is to help you make informed decisions to reduce your tax liability. There's very little planning that can be done if you wait until the last minute to meet with a planner. Ideally, you'd meet with the Essex County tax planner at the beginning of the year to outline action items to prepare for your tax return at the end of the year. If you meet with a planner right before you file your return, there's little planning that can be done.
2) Determine what kind of tax planner you need.
There are several different types of tax planners. If your situation is fairly basic, then you probably just need a tax preparation professional. A tax preparer is someone who isn't a full accountant, but rather only focuses on preparing tax returns. A simple situation would be one that doesn't involve business ownership, complicated deductions, or complex investments. You have straightforward W-2 income and simply want to maximize your refund or minimize your liability.
If your situation is more complicated than this, you may need a certified public accountant. They can review your income, expenses, and assets to minimize your tax obligation. They also may be able to provide consulting services on your business or investments.
3) Ask for referrals.
There are lots of ways to find a tax planner in Essex County. You can search online or simply open the phone book. However, one of the best ways is to ask your friends, family, and colleagues for referrals. If you work with a financial planner or an attorney, they may be the best referral source as they likely work with tax professionals as part of their ongoing business.
4) Schedule a time to talk.
Once you've narrowed your list to three or four tax planners in Essex County, schedule time to speak with them. This would probably be better to do in person, but it's possible to do it over the phone. Remember, do this early. If you try to schedule these conversations in the middle of tax season, they may not be able to fit you in.
Questions to Ask a Tax Planner in Essex County
When you meet with a tax planner in Essex County, you'll certainly want to ask questions about your specific situation. What deductions and credits are you eligible for? What changes should you make to your benefits at work? Are you filing under the right status?
However, there are also questions you should ask so you can make a judgement about whether the tax planner is qualified and knowledgeable. While most tax planners are competent professionals, there may be some who either aren't trustworthy or aren't competent enough to handle your situation. These questions will help you get to the bottom of those concerns.
1) Do they have a PTIN?
A PTIN is a preparer tax identification number. It's a number that signals that the tax planner has been authorized by the IRS to prepare tax returns for the benefit of others. If the tax planner doesn't have a PTIN, that's a sign that they may not be on the up-and-up. You don't want to discover this after your tax return has been filed.
2) Do they have experience planning taxes for someone in your situation?
Are you a business owner? Do you own rental properties? Are you in the middle of a divorce? There are endless unique situations that could make a tax return very complex. Make sure the tax planner has experience working with people who are in the same financial boat as you.
3) When will they provide you with a copy of the return?
When tax time comes around, you may not get a copy of your return as soon as they prepare it. That's fairly common as the tax planner may need time to put the return together. However, they should be able to tell you when you're going to get a copy of it. If they can't, you should look for a different planner.
4) Will they sign the return?
All tax planners and preparers should sign the return. That makes them just as liable as you for any mistakes. If they're not willing to sign the return, that could be a sign that they're not completely professional.
5) How do they determine their fees?
Be careful with this. Don't ask what the fees are. Rather, ask how the fees are determined. If they say that fees are based on a percentage of your refund, that could be a warning sign that they have incentive to be too aggressive in their planning and tax preparation. They should be able to give you an exact fee based on your description of your situation.
6) What happens if you're audited?
Finally, the tax planner should stay involved if you're audited. Know exactly what the process is and how the tax planner will be involved. If they're not willing to help with any audits, you may want to find another planner.
It's not difficult to find a tax planner in Essex County. There are hundreds of them. However, you want to find the right planner. They should have experience handling your situation. They should be knowledgeable and trustworthy. And you should feel comfortable discussing your tax situation with them. If you follow this process, you'll no doubt find the perfect tax planner in Essex County, NJ.
