Tax office top services in Houston, Texas? If you don’t have a tax preparer yet, a good way to find one is to ask friends and advisors (such as an attorney you know) for referrals. Be sure that the person you choose has a Preparer Tax Identification Number (PTIN) showing that they are authorized to prepare federal income tax returns. You should also inquire about fees, which are likely to depend on the complexity of your return. Avoid using a firm that intends to take a percentage of your refund. The IRS website has tips for choosing a preparer and a link to the IRS directory of preparers, which you can search according to their credentials and location.
The more money you make, the more complicated your taxes are going to be. So, if you have a higher income than most people, it’s important to work with a skilled accountant to figure out how to reduce the amount of income taxes you pay. In addition to taking your standard deduction and other deductions, there are many things you can do to lower the amount you pay. Let’s start with an overview of tax rules for high income earners. For the sake of this post, we’ll consider anybody in the top three tax brackets as a high income earner. That means that if you earn more than $163,301 in gross income as a single earner and $326,601 if you’re married filing jointly, you are a high income earner.
Bonus depreciation is an extra benefit for buying assets. The TCJA also increased this tax break from 50% to 100% of cost for assets placed in service from September 27, 2017 through January 1, 2023. Talk to your tax preparer if you’ve purchased any major assets to find out if you qualify. You can deduct up to $25 per person of the cost of gifts given to customers and vendors. An exception exists for those that bear your business name, are distributed as a matter of course, and cost less than $4. Deducting the costs of entertainment is a bit trickier if you show your appreciation by paying for a good time. These costs are no longer deductible unless the event is directly related to your business in some way. Read additional info on https://greentree.tax/.
Carving out a few minutes every January to make sure you’re making things easy for your accountant can help reduce the risk of a mistake come April or an audit later. But we recommend talking to your tax accountant more often than twice a year. In fact, we recommend chatting regularly — even monthly. You’ll have a better handle on your business and can plan for any tax law changes. Recording income and expenses in real-time allows you and your accountant to catch any mistakes early. And your accountant will know your business better and be more empowered to offer proactive, consultative advice. According to the OnPay 2019 Small Business Finance and HR Report, small business owners who have a strong relationship with their accountant are 32% more likely to expect a significant increase in revenue over the next year.