Congratulations, you are done with your taxes for this year. What should you do now? Start preparing for your next year taxes, and make sure you pay lower amounts than the one you did this time. Hire reputed tax services Orlando, and they will help you with this. For right now, we have some great suggestions for you.
Did you have to pay more taxes than you wanted to do this year? What’s been done is done, but you can make sure the same does not happen next year. Try adjusting your withholdings and more money will be deducted from your pay. You might think you will be making less this way, but it is not like that. When it is tax time, you will have made more.
In case you owe money to the government, you can also try paying estimated tax amounts on a quarterly basis. This means that you will have to pay a lower amount in April.
Strategize your charitable donations
When you do contribute to charity? Towards the end of the year is not a great time, despite the fact that most people opt for it. You should start planning this right now, and try to ascertain you are paying the maximum possible amounts. What about your payroll deductions? This is offered by many employees and every month, you are allowed to make small contributions. As the end of the year draws near, these contributions accumulate to a big amount and you will be able to avail a larger deduction.
We also suggest that you should contribute appreciated stock. Hold onto this for around a year, and you will have to pay no capital gains in it. After some period, you can contribute it at its market value.
Related to charity, there is one more deduction which many people miss out on. Even if you are attending a charitable event, you are allowed to deduct the costs which are incurred in traveling.
Utilize employer sponsored accounts
Some employers offer Flexible Spending Accounts or FSAs. These are a great option, and you can contribute money for some qualified expenses such as medical care. But there is a limit, and you cannon contribute more than this.
Contribute to a 529 plan
You can also think about contributing to a 529 plan, which is meant for educational expenses. Please note that this plan matures tax free, and so you will have no deduction on your return at that time. However, the contributions can be utilized as a deduction.
Plan out your investment
Do you have an investment advisor? If not, sign up for one and discuss your portfolio with him. He will help you in strategizing your timing sic that it has the least impact on your taxes.
Winy any more advice on how to do you taxes for next year? Hire a reputed tax services Orlando and they will guide you more.
Tax Advantages Enjoyed by the Rich
What is your income level? Is it towards the higher end? Like so many others out there, you might have the misconception that you get to enjoy reduced tax advantages. The truth is it just that: a misconception. There are tax advantages for the rich as well, and only you can utilize them. Want to more about these? Hire reputed tax services Orlando, and they will help you with it. For right now, we will quickly go over the main ones.
Home Sale Gain Exclusion
If you are unmarried and sell a principal residence, there are instances in which you have to pay no taxes. For example, if you are a single filer, you do not have to pay any taxes on gains that are less than $250,000. If you are a filing jointly, this limit is increased to $500,000.
Please note that this will only be if you meet some requirements. For instance, your must have hold onto the property for at least two years, and you must have also used it as your primary residence for a certain time period. Your chosen tax services Orlando will guide you more about these.
Roth IRA Conversion Privilege
If you are converting your traditional IRA account into a Roth account, you may have to pay taxes. What this means is your tax bill will rise for that tax year. While this is a downside, there is a benefit of this. When you reach your retirement age, you will have to pay no taxes on the amount that you withdraw if your account was open for over five years. Should the tax rate rise in future, you will not be affected by this.
Employee Benefit programs
Is there any employer benefit program which you know of? Start contributing to this and your taxable salary will go down, which means you will be paying lesser taxes. Your 401 (k) plan is an example of this. The cafeteria benefit plan is another example of this. There are contribution limit, but whatever these are, your tax bill certainly fall down.
Self-Employed Retirement Programs
If you are self-employed, you can contribute to self-employed retirement programs. These also include 401 (k) plans and other similar options. Depending on the plan you choose, you may be able to get a deduction worth $57,500.
Alimony deduction is a tax advantage which anyone claim without any regards to the income bracket. Do this on the first page of Form 1040. And by the way, unlike retirement accounts, there are no maximum limit for this, other than your budget itself.
Some companies offer an educational assistance plan, which will provide you with a reimbursement worth a certain amount. Sign up for this plan because reimbursements are tax-free.
So did you like the deductions which we shared with you? For more details on them, contact reputed tax services Orlando.
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.