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The 12 Tax Tips of Christmas:
#12 Hire a pro

December 24, 2009

Ta-da! We're reached the end of our tax carol! I've enjoyed all the voices that have joined this little choir and I hope you've found some good advice for this and future tax seasons.

We wrap up The 12 Tax Tips of Christmas with a final suggestion: hire a tax professional.

12 drummers drummingOK, don't go hire one today. You probably can't anyway, as most are likely taking a break before the 2010 filing season chaos begins.

 But at least evaluate your tax situation and determine whether you're going to need some help. That mock tax return you did (per tip #5 ) should give you an idea of just what kind of hassle you'll be facing when it comes time to fill out the real forms.

Now I'm not saying that software and all the information you get online won't get you through tax season just fine. For many folks, that's true.

And some of the tax and money blogs are written by folks whose paying day jobs are as tax and financial pros. But they'll also be the first to tell you that every taxpayer's situation is unique and, to paraphrase Animal Farm, some are uniquer than others. You may have some wrinkles that need ironing out by someone who is formally trained to do so.

So now, before tax season is in full swing, is the perfect time to consider whether you will need some tax help, both when it comes to filing your 1040 and setting up a tax planning strategy; for example, you have estate issues to consider (and Congress is still screwing around with estate tax laws) or your own small business with all its special tax needs. Of maybe you just don't want to mess with all the new laws that went into effect for the 2009 tax year.

Regardless, you need to start making tax pro plans early.

First, you need to take the time to figure out just what kind of professional tax help you need. You have lots of options, based on your personal tax circumstances, as well as your price parameters.

A few quick comments here. Don't pick a pro on price alone,. And definitely don't hire someone whose fee is tied to how much of a refund you'll get. That sort of pro is why the IRS is going to set up some tax pro regulations in the near future.

Once you decide on the type of pro, you need to find the specific preparer sooner rather than later. The best in the business book up early. You won't be able to wander into an office on April 13 and get the help you need, at least not at the price you can afford!

So next week after the Christmas guests have left and before you party too hearty on New Year's Eve, give some thought to your tax professional needs. When it comes time to sign your tax return next spring, you'll be gland you made some plans now.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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