Reasons Why First Responders Need an Accountant

Are you a first responder? If yes, then you’re a modern-day heroes, especially during this pandemic. First responders are just a phone call away, coming to the rescue to help families and communities who are in crisis. Whether you’re a healthcare worker, a fireman, or any other type of first responder, you can benefit from accounting services to ensure your taxes and finances are in control. 

In this article, you’ll learn the important reasons why first responders need an accountant.

Help You Buying a House

You’re always under extreme pressure and stress, so you need a great home to relax and unwind in. Accounting services can help you in checking the best mortgage programs for first responders to ensure you get the right deal you deserve. An accountant can help you check if you’re qualified for lower interest rates, grant money, rebates, closing credits, and other discounts.

Help With Your Taxes

Taxes will always be a part of everyday life, and accounting services include handling tax returns. An accountant can help you feel confident every tax season. There are taxation situations that are interesting and unusual, and accounting services can help shed light on them.

Here’s how a tax accountant can help you:

• Main Responsibilities: The main responsibilities of a tax accountant include preparing your state and federal taxes, filing property taxes and licenses, preparing tax forms, filing employment taxes, and assisting in tax audits and legal disputes. 
• Tax Planning: Tax accountants are highly knowledgeable about tax codes. A tax accountant can advise you on how to manage your financial assets to reduce tax liability. 
• Others: Tax accountants can check available tax breaks and incentives for first responders. They organize, collect, and store tax-related documents, including receipts for all tax-deductible expenses.

Get Expert Advice on Retirement Planning 

First responders need an accountant because accountants can help in retirement planning. Accountants or financial advisors can help first responders draw their Social Security benefits and teach them how to start a distribution from their pension plan. This way, you can structure your individual retirement account (IRA) to maximize your savings.

If you have an investment property, you can use it as a source of income during your retirement years. However, the income you can get from it can complicate tax situations. You do need to pay taxes on rental income. Plus, it may also affect your Social Security benefits. An accountant can provide expert advice on how you can manage your rental property income during retirement. 

Remember that managing rental properties is a form of business. Hence, it involves income, expenses, and liabilities. Accounting services can help you file your local, state, and federal taxes properly for your rental property income.

Get Expert Advice on a Health Savings Account

Many first responders work in healthcare so they should be familiar with a Health Savings Account (HSA). A Health Savings Account (HSA) refers to a tax-advantaged account that allows you to save for various medical expenses. It means you don’t have to pay tax on HSA contributions or earnings for paying qualified medical expenses. Accountants can help first responders understand all aspects of HSA and is a reason why first responders need an accountant.

Help Plan Future Child Education Costs

Another reason why first responders need an accountant is becuase they can offer assistance on how to save for your children’s education. You’ll be given expert advice on how to take advantage of the recent changes in the child tax credit.

The American Rescue Plan, under President Biden, raised the Child Tax Credit from $2,000 to $3,000 for each child over 6 years old and from $2,000 to $3,600 per child under 6 years old. The age limit also increased from 16 to 17 years old. All working families, including first responders, will get the full child tax credit if they make up to $150,000 filing jointly or $112,500 for families with single parents (or filing head of household).

Accounting professionals can help first responders and their families by advising them on how these recent child tax credit changes can affect them. In this way, first responders can evaluate their financial objectives and how they can take advantage of tax credits to save up for their children’s future.

Why First Responders Need an Accountant – Summary

First responders should seek accounting services to guide them in making financial decisions. Accountants can help first responders with taxation, retirement planning, planning child education, and offer advice on fully utilizing an HSA.

If you’re a first responder, don’t hesitate to consult an accountant to ensure you make well-informed decisions. Consider the ideas mentioned here as you seek accounting services to secure your financial future!