Want to pay lower amount in taxes? Yes, deductions are it, but there is just one problem. Most of the people miss out on these because they have no idea what is considered as a deduction and what is not. Before you file that tax form of yours, be sure to let your accountant in Orlando so that they can ascertain you are cashing onto all eligible deductions. For right now, let us take a look at the ones which are so often missed.
Ever contributed to charity? Doing so does not mean that you are helping the poor, you are helping yourself as well. Charitable contributions can lower your taxable amounts. And by the way, it is not just about cash. Even if you donate some goods to charity like shoes or clothes, you will still get a deduction that is worth their price.
Fees and Tuition Deductions
Are you studying or maybe your child is? In both cases, you can get this deduction without any regards to what discipline you are obtaining a degree in or from which college you are getting it. The same goes if your spouse is getting a degree. If your program is full time, you may want to receive benefits via the American Opportunity for Tax Credit. Your accountant in Orlando can provide you details about this. The tuition fee deduction is also applicable if you just took one course or class to improve your career prospects.
But there is a limit on the deduction amount. It cannot be more than $4,000, and this insides eevryutung such as the fees, books and other educational supplies.
Local and State Sales Tax Deductions
If you are a tax payer, you can deduct state income taxes. However, if you just do not have these taxes, what will you deduct then? In such a case, you can deduct sales taxes which you pay on purchases. And this deduction is not limited to only these people. Even if you have paid income taxes, you can still get this deduction if your made some major purchases. Discuss the matter with your chosen accountant in Orlando, and they will guide you more.
Earned Income Tax Credit
If your income level, is low, you taxes should not be that great, and you can bring them down even further with the Earned Income Tax Credit or EIC. The maximum limit of this credit is $6,044, but this varies with the amounts you earn and the number of dependents which you have.
Job Search Deduction
Have you been looking for a job lately? You must have spend some amount in printing your resume, paying fees for consulting firms, emailing your CVs, and the like. At times, you may even have had to travel and this would have incurred addition costs. Itemize all these expenses and get them deducted.
Retirement Saver’s Credit
If your income is less than $29,500, you can avail this credit. The maximum limit is $1,000.
Common Errors Made by Tax Payers
Have you ever made an error on your tax forms? If you avail the services of a reputed accountant in Orlando, this will not be so. In all other cases, there is a good chance that you may make an error on your form. So which of these are the most common ones? Let us take a look.
Want to avoid all of the above blunders? Being careful will help you do this, but a more effective solution is to hire a reputed accountant in Orlando for the job.
Delaying your filing
There are so many people who delay their taxes? Are you one of them? Maybe, just like the rest of them, you think that the later you file your taxes, the better it will be. Actually, it is otherwise. The earlier you get done with your taxes, the better it is. Do you know why? Because your application will be processed eelier and you will get your refund in a shorter time.
Moreover, when you start your tax process early, you have more time to take care of issues that can arise along the way. Plus, you also have more time to ascertain that you are properly utilizing all tax deductions and credits for which you are eligible.
Paper filing your taxes
This is the digitized era. Though paper taxes are still applicable, consider them out and switch to e-fling instead. There are so many benefits of this, and one of these is actually reduced errors. Another great benefit is that it takes a lesser amount of time, and not to forget the fact that you will het your refund quicker.
So this year, make sure e-file your return. If you have any confusions, discuss the matter with a reputed accountant in Orlando, and they will offer you valuable advice.
Not updating your family status
Was the year meaningful for your family and changed quite a lot of things? Maybe you got married or maybe you had to go through a divorce. What if you have a new baby to take care of or id your children have moved back into your own home? In all these cases, there is a good chance that your filing status is no more the same, and you will have to figure out a new one for yourself. Once again, any accountant in Orlando will be able to help you out with this.
Please note that if you file your taxes with the wrong status, you may actually be paying more amounts than necessary.
Not deducting enough expenses or deducting too many of them
Deductions are a great way to bring down your taxes, but make sure they are classified as a deduction, and you are eligible for them. Some people fail to utilize all of their available deductions, and others just consider every expense as a deduction. In one case, you may be paying more taxes, and in the other, you will be underpaying them and may have to bear penalties later on.
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, Hunters Creek, Lake Nona, and Celebration, 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.