Hiring a Tax Expert during Divorce

The fees you pay a tax preparation specialist will be determine by what tax returns they help you complete and what forms actually need to be filed. How you opt to receive your tax refund will also impact your cost.

H&R Block and other well-known tax preparation services with retail locations nationwide often distribute money saving coupons, which you should utilize to save you extra money. To save $15 on tax preparation help from Jackson Hewitt, visit www.jacksonhewitt.com/?Coupon15Off to download a free coupon. A $30 off coupon from H&R Block can be downloaded from www.mommysavesbig.com/111hrblockcoupon.gif.            

Before your appointment with a tax preparation specialist, make sure you have all of the necessary paperwork, financial records and tax-related information gathered and ready to present. This includes a photo ID (passport or driver’s license), copies of your tax returns from last year, your Social Security number, the Social Security numbers of your dependants, and W-2 and/or 1099 forms. Additional paperwork you’ll need includes:  

1. Details about your investments

2. Details about your real estate holdings, including mortgage information pertaining to your home that show interest and points paid, along with the real estate taxes that have been paid

3. Retirement plan information

4. Records of charitable donations

5. Information pertaining to other potential deductions, such as education expenses, vehicle and other property taxes you’ve paid, and a summary of your debts
 
The H&R Block Web site offers a free online tool for helping you determine what you’ll need to bring to your appointment with the tax preparation specialist who will be completing and filing your state and federal tax returns.

If you’re wealthy, have non-standard sources of income, or have complicated personal finance or tax issues, including financial accounts that are still considered joint-accounts with your former spouse, you may benefit by hiring a full-service CPA to assist you with your tax planning, as well as preparing your tax returns.

Unlike a tax preparation specialist, a CPA is licensed to provide advice and guidance on a wide range of personal financial issues, including tax planning and investments. If you’re interested in developing an ongoing tax plan and need additional guidance with personal finance matters, as well as help completing your state and federal tax returns, hiring a CPA will be beneficial.  


THE ABCs OF CPAs, PFSs AND CFPs  

A CPA is a state licensed, professional accountant who understands tax-related issues and tax law. CPAs have different specialties, including personal financial planning, so it’s important to find someone with an expertise in the areas you require.

A CPA can earn the added accreditation of Personal Financial Specialist (PFS), if they are an active member of the American Institute of Certified Public Accountants (which binds them to a Code of Professional Conduct), and they have a minimum of 1,400 hours of financial planning experience. They must also pass a rigorous exam. A CPA is typically paid by the hour for their services.

Not to be confused with a CPA, or a CPA with a PFS, a Certified Financial Planner (CFP) is someone trained and licensed to help people manage their personal finances and investments, but who is typically not a CPA. Thus, a CFP does not specialize in tax-related issues. An Enrolled Agent is a tax professional who is licensed by the IRS.

An Enrolled Agent can be most helpful during an IRS audit, for handling complex tax issues, or for helping you deal with tax collectors after a problem arises with the IRS.