Tax preparation can seem like an easy enough task to handle on your own, especially if you have basic knowledge of the tax code. However, there are a few key situations when it's worth hiring a professional tax preparer. 

Here are two life events when professional help might be a good idea.

You've Recently Gotten an Inheritance

If you've recently come into a large sum of money, whether it's through inheritance or another windfall, you'll want to consult with a tax preparer. Tax laws regarding inheritances can be complex, and you want to make sure you're taking advantage of all the deductions and exemptions available to you.

When you inherit property, the tax basis of that property gets a "step-up." The tax basis (what you would use to calculate capital gains tax) is reset to the market value of the property. So, if you sell the property soon after inheriting it, you may not have to pay any capital gains tax at all.

However, if you don't sell the property and it appreciates in value, you'll be responsible for paying capital gains tax on the increased value when you do eventually sell it.

A tax preparer can help you understand the tax implications of your inheritance and plan accordingly. They can also help you navigate the implications of your newfound wealth and make sure you're not overpaying on your taxes.

You've Had a Divorce

If you've recently gone through a divorce, your tax situation has likely changed. When you file your taxes, you can only choose one filing status from the list: single, head of household, or married filing jointly.

If you're divorced (or legally separated), you can only file as single or head of household. This may mean a higher tax bill for you, as the tax brackets for those filing singly are generally lower than for those filing jointly. In addition, you may no longer be able to take advantage of certain deductions and exemptions that you could when you were married.

For example, you can no longer deduct your spouse's medical expenses or claim them as a dependent. This can be quite a hurdle, especially if you have young children. A tax preparer can help you understand how your divorce will affect your taxes and help you take advantage of any deductions or exemptions you may still be eligible for.

You might also want to consult a tax preparer if you have any questions about your filing status. While it's generally straightforward if you're single or married, it can be more complicated if you're filing as head of household.

To qualify as head of household, you must meet certain criteria, such as being unmarried or "considered unmarried," having a qualifying child or dependent, and paying more than half the cost of maintaining your home.

If you think you might qualify as head of household, it's worth consulting with a tax preparer to make sure you're taking advantage of all the benefits available to you. Head of household status can save you a significant amount on your taxes, so make sure you're good and ready before you file.

Contact a local tax preparation service to learn more. 

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