As tax time dawns, everyone gets so busy with tax preparation Kissimmee as they try to pay the lowest amounts possible while maximizing their refunds. Needless to say, you should do this extremely carefully and in a proper manner so that you do not overpay any amounts to the IRS. Gather your documents, sort out your finances and figure out the answers to the questions below. Doing all this will simplify the process of filling out your tax forms.
Do you need an accountant for tax preparation in Kissimmee?
Before you get involved in tax preparation Kissimmee, decide if want an accountant or not. If your finances are in order, you may not need professional help, but in most cases, hiring an accountant is a good choice. An accountant can really help you with your taxes and ensure you pay the least possible amounts.
Should you increase contributions to your retirement funds?
In one word, yes. The greater your contributions are, the lesser your taxable income begins and the lesser tax amounts are incurred. And this is not just because of taxes. If you save more now, you are just securing your retirement and later on in life, you will not have to go through tough financial situations.
The maximum amount you can contribute to a 401 (k) plan is $17,500 and $5,500 for IRA accounts. Try to contribute this much, or at least something that is close to this value.
Should you convert your traditional IRA account into a Roth IRA account?
Taxes have to be paid for both traditional IRA and Roth IRA. With a traditional IRA you can get an immediate deduction but when you withdraw, taxes will be incurred. For a Roth IRA, you have to pay taxes when you contribute, but later on all your withdrawals will be tax free.
So back to the question, can a conversion provide you with more benefits? If you want our advice, you should convert. Yes, you will have to pay taxes right now but the taxable amount will probably be less than the taxable amount incurred a couple of years from now. Take pains now and leave the gains to be enjoyed later on.
Should you sell your investments?
Investments are an important consideration for tax preparation Kissimmee. If you can hold them for anything longer than a year, avoid selling now. The profit that you earn now will be taxed at a higher rate. However, if you keep it with you for more than a year and then sell it, a lower tax rate is applied.
For investments that do not appear profitable, you can sell them because there is just no point in holding up to them.
Should you make a move that can increase or decrease your income level?
As long as you are an employee, this question is not of concern to you. If you are a self-employed, this can provide you with tax advantages. You can bill your clients right now if you think your tax bracket will rise next year. Similarly, you can delay your income, if you tax bracket will be lower next year.
If you need more information about our Kissimmee 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, 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.