How a Tax Attorney can Minimize Your End-Of-Year Tax Bill
There is no sense paying Uncle Sam a single penny more than you absolutely have to. Our tax attorney at Niswanger Law is here to ensure you keep as much of your own money in your pocket as possible when tax season rolls around. There are all sorts of perfectly legal and creative ways our Monroe La tax attorney can minimize your tax bill each spring.
Tax credits are available to reduce the amount of taxes owed. If you own a business, there is a chance you will be eligible for tax credits provided by the government. Tax credits are incentives to do certain things such as employing a racially diverse workforce, developing rural land, eliminating hazardous waste in a certain manner, etc. Some tax credits are refundable, meaning the refund you receive will be greater than the amount of money you owe the federal government. As an example, if you owe $1,500 in taxes but receive a tax credit of $2,000, you will pocket $500 if the tax credit is refundable. Alternatively, your tax attorney can also pinpoint non-refundable tax credits that are strictly applicable to the money you owe in taxes.
Donating money to recognized charities is one of the best ways to decrease your tax bill. As long as you can show legitimate proof of the charitable donation with a written acknowledgment from the charity or a receipt, the donation can be used to reduce your tax burden, ultimately saving you a considerable amount of money when tax season rolls around.
Contributing Money to a Pre-tax Retirement Account
Financial contributions to retirement accounts such as IRAs and 401(k) accounts can significantly decrease your tax bill. Such retirement contributions are deducted from taxable income, ultimately decreasing the federal tax amount owed.
Eligibility for the Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is available to those with moderate-to-low income. Commonly referred to as EITC, this tax credit decreases the amount of tax dollars owed. The EITC is particularly helpful for families with kids. The specific amount of money your tax bill is reduced through the EITC ultimately hinges on the number of kids you have, your marital status and your income. It is even possible for the EITC to boost your refund rather than strictly reduce the amount of tax dollars you owe.
Take Full Advantage of Deductions
Plenty of people overlook deductions, assuming taking full advantage of them will prove laborious or trigger an IRS audit. Let our tax attorney help you list the entirety of your deductions and you will rest easy knowing you are paying as little as possible in taxes. Examples of potential deductions include certain capital losses, employment-related items, student loan interest, healthcare expenses and the number of dependents you have. Our tax attorney will review your unique situation and determine which tax deductions are applicable to your unique situation. In particular, those who own small businesses can take advantage of a litany of tax deductions. If you were to leave such deductions unclaimed, you would essentially be leaving a considerable sum of money on the table during tax season.