Tax time is just round the corner. Are you done with filing your return, still working on it or have not even started? If you have not already done so, we suggest that you should hire an accountant Orlando, and he will guide you through the process. Whenever you do your taxes, make sure you are utilizing as many deductions as you can. This will lower the amount you will be paying to the IRS. Obviously, the more expenses you can deduct, the better it is. But did you know that not every expense is deductible?
Deductions should be as many as possible, but make sure the IRS allows them to be used as deductions. There are so many people who believe certain expenses are deductible, whereas actually they are not. We will go through over the most common ones here. Deduct any of these, and if the IRS catches you, you are going to be in trouble.
Interest on your Personal Credit Card
Yes, we know you are paying quite a significant amount as interest on your personal credit card. The IRS is also aware of this, but they do not allow you to deduct this. So why do people still think they can deduct this interest? Because once upon a time the IRS was okay with it. Later on the laws changed, and now this is not considered a deduction anymore. The reason behind this modification was that deducting interest encouraged them to use their credit card, and they overspent it.
So what can you do about this interest? As an Orlando accountant I try to avoid it as much as you can by most of your credit card balance or using your card in dire circumstances only. One more thing: this holds only for your personal credit card. The interest on your business credit card is deductible.
The only interest that you can deduct from your taxes is the one you accumulate on your mortgage.
The Cost of Your New Work Clothes of Interview Suit
Another common misconception which people have. The costs of your professional attire are not deductible. Why? Because it is not completely professional. You can always wear it to a party, date, wedding or anywhere else that is suitable. What about your ordinary clothes? You cannot deduct those as well.
Any deduction which you can enjoy in place of this? Actually, yes. The expenses which are incurred when you apply for a job are deductible such as the costs of getting your resumes printed or while traveling. If you have to go out of town, you can even deduct the accommodation costs.
Again a no. the cost of traveling from your residence to your workplace is not deductible. But there is one exception. If you have to work at two different places on the same day, whether for your employer or some other one, you can deduct some of the expenses.
If you have any confusion as to what you can deduct or what you cannot, be sure to ask your chosen
Income Tax Facts by an Orlando Accountant
How often do you worry about taxes? Ever year as the deadline draws near, people get caught up in finance records, accounting programs and tax returns. There is always so much to do and often not enough time. Want help? Hire an accountant Orlando, and they will be able to solve most of the issues that arise. Taxes may seem difficult, but if you are aware of what needs to be done, you will be able to get through them.
Here we present you some interesting facts about the deadline and all that is involved.
The story behind the deadline
Do taxes always have to be paid before the 15th of April? No, previously this date was the 1st of March, which was decided when the 16th amendment came into being in the year 1993. After that, in the year 1918, the date was revised to the 15th of March. Some years later, in 1955, 15th April was decided as the deadline.
So why was a deadline later in the year decided rather than the earlier? Many experts think this was beucase the government just wanted some more time to hold onto the amounts which they owe to the people. Taxes are not only about what you have to pay to the IRS. In some cases, people are entitled to a refund, and the government pays them back.
Tax was introduced after the war
They first time people paid taxes was after the American Civil War. In the year 1861, an act was introduced that was aimed at gathering finds for an expensive conflict. This went on till four years, and do you how costly it was on a daily basis? A huge $2.5 million for every single day.
The tax code takes up 70,000 pages
How long have you been paying taxes? Even if you have been doing this for a couple of years now, do you know all the laws by now? Of course you do not. There are just so many of these. For most people, it is difficult to read through the entire document, forget retaining it in the mind.
When tax was first introduced, the laws covered over 400 pages. Today, this number has reached 70,000, which makes it mandatory for you to hire an accountant Orlando if you want your taxes to be easy for you.
Americans take around 7.6 billion hours
For what? Doing their taxes. Every year, all the Americans put in over 7.6 billion hours for just taxes. How much is this value for a single individual? It is somewhere near 24.4 hours, more than a day. That is the amount of time you give to taxes every year.
89% do not want to cheat on taxes
Did you ever cheat on taxes? Chances are very little because over 89% people think it is no okay to cheat on taxes. Why? Because if you are caught and have to face an audit, that is a huge trouble in other words.
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.