Dave Ramsey Says You Must Ask Your Tax Preparer These 8 Questions

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Put them on your list before you get too far into the filing process. 

Filing taxes is something many people opt to do on their own. But you may be stressed out about the idea of having to tackle your tax return without any help. And if you’re self-employed or own a small business, it’s really important to enlist the help of a tax professional, since that person may be able to eke out savings and deductions you wouldn’t know you’re eligible for.

But if you’re going to work with a tax preparer, it’s important you choose the right person for the job. With that in mind, here are eight questions that financial guru Dave Ramsey suggests asking your tax professional.

1. What’s the process like?

Each tax preparer has their own system for getting taxes done. Maybe yours like to do things remotely and you prefer to do things in-person. It’s important to ask that question to make sure you’re both on the same page.

2. What tax help can you give me?

You want a tax preparer who will do more than just copy numbers from forms into a software program. Ask your tax preparer what they bring to the table. Can they help you identify credits and deductions you may not have known about? You’ll want to make sure you’re getting good value for your money.

3. What tax info will I need to provide?

The sooner you know what tax documents your tax preparer will need from you, the sooner you can get organized. These documents may include a W-2 from your employer summarizing your wages and 1099 forms from your bank and brokerage account showing how much income you earned from things like interest and dividend payments.

4. How can I improve my tax situation?

Your goal may be to pay the IRS as little as possible, both now and in the future. A good tax professional should be able to offer you customized advice based on your specific circumstances.

5. What should I do this year in light of my tax situation?

Maybe you underpaid your taxes in 2022 and now owe the IRS money. A tax preparer might suggest you take steps like maxing out your IRA account (which you can do up until the tax-filing deadline) to lower your tax bill for 2022. It’s good to have that conversation upfront in case the suggestions your tax preparer has take time to put into place.

6. Can I call you throughout the year for advice?

Taxes are something you pay year-round, so you should have access to tax help and support year-round. It’s a good idea to hire a tax preparer who’s available 12 months a year, and not just during the filing season.

7. How will my side gig affect my taxes?

If you picked up a side job in recent years, you’re in good company. But it’s important to understand the tax implications involved. Not only must you pay taxes on those added wages, but they might bump you up into a higher tax bracket. So it’s a good idea to strategize around that.

8. What other services do you offer?

Your tax preparer may do a lot more than just submit returns to the IRS. Maybe they can help you organize your small business accounting or set up a small business if that’s a route you’re looking to take. It pays to find out what options are available to you.

If you’re going to work with a tax preparer, it’s essential that you find the right person for the job. Following Ramsey’s advice could help you feel more confident about the tax professional you’ve chosen to sign up with.

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