The tax filing deadline has passed, but if you want to pay less taxes next year, you still have to take care of some things. Use this time to organize your taxes so that you only have to pay limited amounts next year. We suggest that you should hire a reputed South Orlando accountant who will provide you with valuable advice in this regard. For right now, we do have some strategies for you, but hiring a reputed South Orlando accountant is the only way to ensure you are getting some tax benefits.
Save for retirement
Saving for retirement is a great idea. Not only will it secure your future, but you will also be paying limited amounts in taxes the next time you file your return. While doing so, maximize your contributions to your retirement account which can either be the 401(k) plan or an IRA account. For the formal of these, the maximum tax deferral amount is limited at $17,500 and for the latter, it is fixed at $5,500. If you are over 50 years of age, both plans allow you to contribute more. The limit is then increased by $5,500 for the 401 (k) account and by $1,000 for the IRA account.
Go for HSA and FSA
HSA and FSA can be used as deductions if you are eligible for them. If you are contributing to a health savings account, the amount is deductible even if you do not itemize it on Schedule A. If your employer is contributing the amounts, then also they excluded. In case, the amount is not deductible, it is carried forward to the next year. There are contribution limits for both the accounts. For single individuals, this is $3,300 and for families, it is increased to $6,550. For FSA, the limit is $5,500.
As for withdrawals, they are also tax fee.
Donate to charity
Do you care for the needy? Help and you will be helping yourselves as well. All amounts can be deducted from your taxes. Even if you are not making the donations in cash, you can still reduce the amount equal to the value of the goods. For this deduction to be applicable, the charity to which you are donating must be exempted from taxes and hold the 501(c)3 status. If this is not so, you might not be able to deduct the amounts.
Analyze your investment portfolio
Are you a regular investor? While this does not provide you with a deduction, you can still make sure that you are not increasing your tax bill. Go through your portfolio and reduce your gains. Municipal bonds, issues by a local or state government, are exempted from taxes. The same can be said for master limited partnerships, addressed as MLPs.
As long as you are eligible, tax credits directly reduce your taxable amount. This is why they are more useful than deductions. All energy efficient purchases provide you with tax credits. Same is the case if you are hiring someone to take care of your spouse, child or another dependant.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.