Tax planner vs tax preparer
Hello everyone,
I currently have both W-2 and 1099 income, and my 1099 income has increased significantly recently. I’m looking for someone who can help me proactively plan a tax strategy to minimize my tax liability to the IRS.
Up to now, my tax preparer has mainly just reviewed the information I provide at year-end and filed the return, without offering much input or planning guidance. Recently, I consulted with the well-known CPA firm. They mentioned that with the right planning, my overall tax liability could be reduced quite a bit. Their fee is around per year, and they’re projecting potential tax savings of $40K–$50K annually.
Does this seem like a worthwhile direction to pursue? Are there better or alternative options I should consider for proactive tax planning?
Thank you in advance for your insights.
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Comments
CPA here. It's difficult to determine if the quote is reasonable since we do not know the scope of the proposed service. But you made a very good point. You are looking for a tax planner and not just a tax preparer. There is definitely a distinction. I am happy to answer any questions you have as you search for a tax pro. Feel free to send me a connection request and we can chat offline.
Hi Jill,
I have also sent you a connection request.
What is the annual fee that they mentioned?
8000