Tax Accountants Help You Pay Reduced Amounts to the IRS

In a recent poll of tax accountants, they were asked what was the main concern or worry that their clients had. The results of the poll were clear. They were most worried about their taxes increasing every year. Do you believe this too? I think we all do. But these clients are taking the most important step they can and it’s letting a tax accountant prepare their tax returns.

Increase contributions to retirement accounts.

Putting more in retirement accounts not only helps you prepare for your retirement but it also reduces the amount of money that is to be taxed in a given year. Deposits to your retirement accounts result in a huge effect on your tax bill.

Adjust your withholding

This is an important strategy. If your withholding is to high than you are taking too much out of each check. If with holding is to low than not enough is taken out which could result in penalties and you writing a big check you are not prepared for. This an important part of paying your taxes efficiently.

Use tax credits and deductions

Credits and tax deductions are two ways to reduce your tax liability. With tax credits you are receiving money for a certain activities like buying energy-efficient cars or other benefits. A Tax deduction are items that you have spent money on and can be deducted from your income. Thus reducing your final tax bill. Tax deductions are things like medical bills, interest on mortgages, education and things like that.

Get organized

Are you organized? Are your tax documents ready for your tax accountant? If they are, than are well prepared. If not, than you have problems. First, if you are not organized your tax accountant will probably charge you extra for wading through the mess and getting things organized. Second, you may someday be audited. On that day you will need to furnish documentation for all your deductions or they won’t be allowed. Take the time now to get organized for next years tax return.

These are only a few tips to help you prepare for an important event that comes every year. If you don’t know where to get started or how to be organized  it’s time to ask your Wisteria tax accountants. They have the knowledge and the time to help you.

Category: Taxes