Should I Hire Someone To Prepare My Taxes?

The New Laws Have Made Tax Preparation More Difficult

If doing calculations is not your talent, it is a good idea to hire some professional tax help -or a CPA (Certified Public Accountant)-to do the calculations for you. However, even if you are talented at doing those calculations, it’s a good idea to keep a CPA on speed dial anyway. Tax calculations are expected to get more complicated as time goes on.

Unfortunately, the Tax Cuts and Job Act (TCJA) of 2018 has made some significant changes to the tax codes. For example, it doubled the deduction standards, which has been making itemizing less attractive. SALT (state and local property tax deduction) is now collectively limited to $10,000, deductions for theft and loss has been repealed, and personal exemptions have been eliminated.

Utah Part-Time and Non-Residents Tax Preparation Salt Lake City

Even if you are only a part-time resident of Utah or stayed there for less than 183 days for a work project, your income is still taxable in Utah. So even in those cases, it’s good to have a Utah CPA on speed dial. Unless your company who is a LLC, trust, partnership, or S-corporation is a K-1 only company, you are required to file for a tax return.

Utah non-residents must report all income from all sources, report the total portion of that income, and calculate the percentage to find the tax due. If the non-resident’s primary state happens to tax his or her income earned in Utah, that state will likely give credit for the taxes paid in Utah.

In the case of part-time residents, on the contrary, all income from every state is taxable in Utah. The only exception is specific exemptions. The calculation process is similar to the non-residents. The individual first puts in the total income, then calculates everything as if it was all earned in Utah, and then calculates the percentage of the income. However, then he or she must calculate the Utah tax percentage and then file for the other state’s part-year return and go through the reporting and calculation process on that.

With the new laws in place, however, the exemptions can be difficult to determine these days. As stated above, your deductions especially can be very difficult to calculate. If you’re a part-time or non-resident, you may want to be especially cautious about deciding to itemize. Remember that there are no personal exemptions involved anymore so you can’t rely on any leeway there, either.

Utah Tax Preparation Has Some Unique Exceptions

If you earn less than $54,000 a year, it is possible to get help with free tax preparation Salt Lake City or anywhere else in Utah for free. Some CPA’s actually volunteer their time for people who might not otherwise be able to afford them. Which now with the new laws in place, is more essential than ever.

All you need to do is bring a photo ID, social security cards, W-2’s and any other necessary income forms, a 1095-A for if you’re on Obamacare, last year’s tax return form, your tuition form if you’re a student, and bank information from direct deposit. You will need to bring those documents for yourself and your spouse or anyone else in your household who will be receiving a return. There are at least 11 sites to work with a Utah CPA for free within 25 miles of Salt Lake City.

Conclusion

Whether you are a resident of Utah or not, it is important to keep in mind that all income earned in Utah is taxable. Especially as a result of the new TCJA, getting tax help from a CPA is a real time saver.