As an accounting firm in Orlando we ask our clients the following question. How often or seldom do you think about taxes? Right before April 15, sometime sooner or throughout the year? The IRS claims that most people start preparing for taxes in February or March, around 25% of them delay it until April, and the remaining few plan the whole year through.
Taxes can be quite complicated and if you do not handle them well, they will stress you out. Hire a reputed accounting firm Orlando, maintain your books properly, manage your finances and you will get through it. But before you start filling up those forms, go through these steps to simplify the process even more.
Find out the amounts you owe
Visit the IRS website and view their Withholding Calculator, which you can use for free. Provide answers to the questions that are displayed; these cover many things such as your dependants, filing status, income levels and deductions. Your last salary slip will show you your exact income, and you should enter this amount in the required field. If you are self-employed, you can estimate your income by adding up all your earnings for the whole year. Though your income levels might have changed, your deductions will be pretty much the same as last year if you did not make any major financial decisions. View your last year’s return form as a guide or take help from your chosen accounting firm Orlando.
Though it is not necessary, try to provide the exact figures so that the calculator can give you an accurate estimate of the amounts you owe. It will also provide you with suggestions for adjusting your withholdings for the remaining year. You will either have to make up for the difference or ensure that you do not pay more taxes than necessary.
Accounting Firm Orlando Help You Take the Necessary Action
Once you know the amounts you owe, you can proceed to planning the way you will manage your taxes. Change your withholdings by submitting an updated W4 form to your employer.
If you owe taxes
If you still have to pay taxes for the year, let deductions benefit you. Here is what you can do in this regard.
- Pay your mortgage payment for January in the month of December, which will increase the mortgage interest amount, providing you with a greater deduction.
- Try to prepay the taxes on your property.
- If you contribute to an IRA plan, do so before the 15th of April.
- Purchase equipment which you can use for business purposes such as a computer or laptop. You can use this as a deduction.
If you expect a refund
If you have overpaid your taxes and expect a refund, here is what you can do so that your tax liability is shifted forward.
- Review your portfolio and see if you can use your refund for another investment.
- Try to file as early as possible.
- Opt for home improvement and you will even be able to utilize it as a deduction the next year.
If you need more information about our Orlando accounting and tax services, please contact us at 407-502-2400. 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, and Hunters Creek, 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 status applications.