Tax help tips from companies? If you have business income and expenses to report on Schedule C, you will need to share your books and records (for example, QuickBooks or any other accounting system you use, receipts for expenses, and relevant bank and credit card statements).16? The better organized your records are, the less time it will take a preparer to process your taxes, which translates into lower fees for their service.
That might not seem like an advantage, but it is. Any income earned on the money in your Roth IRA is also tax free. You can even roll over the money in a traditional IRA or a 401(k) into a Roth IRA and reap the same benefits. Some of the best times to do a Roth IRA conversion are when you’ve had a year with less income than the previous year, or when you’ve retired and are temporarily in a lower tax bracket. This strategy makes sense if you can wait until the age of 70 ½ to make mandatory withdrawals. We like to suggestion this option to our clients because it’s easy to overlook, especially when people are focused on tax deductions as a way of reducing their taxable income.
Hold Off on Mutual Fund Purchases: People should be wary of buying mutual funds at this time of year if they will be held in a taxable account. You could get hit with a tax bill for year-end dividends even if you just purchased shares. “That’s how mutual funds work, but people don’t realize it,” says Joanna Powell, managing director in the Boston office of accounting firm CBIZ MHM. To avoid paying additional taxes, consult with a broker before making a purchase to find out when distributions are made.
The QBI deduction has some other restrictions and limitations, so check with your tax preparer about your eligibility. Setting up and funding a retirement plan for yourself and/or your employees can save you money on taxes. Make sure it’s a qualified plan so you can take advantage of those tax savings. It must be one that’s recognized by the IRS to allow deferment of taxes on earnings until the earnings are withdrawn. They include IRAs and defined contribution plans such as a 401(k) or 403(b). Many options are available depending on your business, your goals, and your needs. Consider talking with a financial professional to figure out which is best for you. Read even more info at https://greentree.tax/tax-preparation-service-in-houston/.
Don’t Assume Anything. When making your initial debt collection call, quickly make sure that the debt has in fact not been paid. Don’t alienate the customer. Remember there may be potential future business with the customer. The debt in question could be a mistake and not a collection problem at all. Be careful with your tone and your words at this point. Wait and listen to what the customer has to say, and be sure to document the interaction carefully and accurately.
Current research indicates that individuals are likely to make errors when preparing their tax returns. The following tax tips were developed to help you avoid some of the common errors dealing with the standard deduction for seniors, the taxable amount of Social Security benefits, and the Credit for the Elderly and Disabled. In addition, you’ll find links below to helpful publications as well as information on how to obtain free tax assistance. If you do not itemize your deductions, you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind. (See Form 1040 and Form 1040A instructions.)