Got Your Federal Tax Return Covered? You Might Still Need an Accountant for This Reason

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Don’t assume you can go it alone. 

At this point, we’re coming up on the tail end of the 2023 tax-filing season. And if you’re at the point where you’re almost done filing your 2022 tax return, you’re in great shape.

Many people wait until the filing deadline (which, this year, is April 18) to get their taxes done. But if you’re about to submit that federal income tax return, you’re probably feeling nice and confident. And you may be feeling great about the fact that you were able to tackle that return on your own, thereby avoiding an accountant’s fee.

But while you may be okay to file a federal tax return solo, you should know that different states have their own rules and nuances when it comes to taxes. So it could pay to hire a professional to assist with your state tax return.

The rules aren’t all the same

The federal tax code may be complicated in its own right, but at least it’s uniform. State tax laws, however, can vary a lot from one state to the next. And if you don’t seek help in filing your state tax return, you could wind up making a mistake that costs you money.

To illustrate how different the rules are from state to state, each state sets its own income tax rate. And some states don’t have an income tax at all.

New Hampshire, as an example, is a state that doesn’t tax wages from a job. But if you have dividend income in your brokerage account, that income is subject to taxes, as is interest income.

Because state income tax rules are so diverse, it’s generally a good idea to get help from someone who knows the laws of your state inside and out. So even if you’re convinced you don’t need help with federal income taxes, you may want to pay a (potentially smaller) fee to get help with your state tax return.

You should also know that if you live in one state but work in another, you may need to file a state tax return in both states. Again, that’s the sort of thing you may want help with.

Also, since so many people are now working remotely, it can be unclear as to which state you owe money to. But an accountant can help you navigate those questions and ensure that you’re paying taxes to the right state.

Get peace of mind

Hiring an accountant for tax help could give you the reassurance that you’re not about to make a huge tax-filing mistake. So even if you don’t think you need one for your federal tax return, you should strongly consider getting help with state taxes. This is an especially good idea if you live and work in separate states, or if you split your time between multiple states.

And if you’re a business owner, it’s definitely a wise idea to get help with your state tax return. There may be certain incentives available to you through your state that you wouldn’t know about without the help of an accountant, and some of those could be huge money-savers.

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