Tax preparation providers in Houston, TX? Bunch Your Charitable Contributions: In 2019, married couples filing jointly have a standard deduction of $24,400. For single taxpayers, the standard deduction is $12,200. The Tax Cuts and Jobs Act of 2017, which nearly doubled the standard deduction, also eliminated miscellaneous deductions, capped state and local tax deductions at $10,000 and limited mortgage interest deductions to loans of up to $750,000. These changes can make it difficult to itemize deductions unless someone has significant charitable donations. Powell suggests people bunch two years of contributions into a single year, which would allow them to claim an itemized deduction every other year. For those with the financial means, setting up a donor-advised fund may be ideal. “You get the deduction in the year you move the money (into the fund),” Powell says. However, charitable gifts from the fund can be spread out over time.
This is a trendy topic in 2020. Money are a big problem, as everyone knows. We will discuss about a few tax loan recommendations finishing with the presentation of a high professional firm in US. Clearly, statistics says it right. A study released by the General Account Office of the United States, says most taxpayers benefited from hiring tax experts. To conclude, polls show people don’t want to do it on their own since they could make a mistake. Every mistake could become a penalty later. Moreover, our team annually participates in several education classes to broaden their knowledge. As a result, we are well aware of the tax law changes, because of, changes made by congress. besides, we use the best tax software to ensure you get the best tax experience.
What are my obligations as an employer? Upon being notified of a wage garnishment court order, an employer should immediately alert the employee to the situation in writing. Depending on the garnishment, there may be a form provided for this (i.e., Form 668 for a federal levy). An employer can also draft a letter detailing the specifics of the wage garnishment order, the amount to be taken from each payment, and the length of time the wages will be garnished. Concurrently, an employer should notify their HR and/or payroll departments so they can start the wage garnishment process and ensure that payments are sent to the appropriate agency or creditor (whether the employee wishes to comply or not). Taking these actions protects the business from any legal repercussions for failing to respond to the order.
Our first clients have been average earners in Houston. Slowly we have grown into serving clients with higher incomes such as six-digit earners. Admittedly, for us doesn’t matter your amount of income. We help every taxpayer who is using our tax services in Houston with the same respect as the one before him/her. Due to our more than 5 years of experience in bookkeeping and tax preparation field unquestionably we have seen every type of tax issue there is to review. Additionally, more than 90 percent of our clients come back every year and express our services to friends and family. Find even more details at https://greentree.tax/income-tax-houston/.
Fund IRAs and SEPs to Allowable Limits: If you participate in an employer-sponsored individual 401(k) plan, 403(b) retirement plan, or other qualified retirement plan, the deadline for contributions is Dec. 31. However, you can still fund an IRA until April 15. If you’re younger than 50 and contributed less than $6,000 for the 2019 tax year, or you’re older than 50 and have contributed less than $7,000, you have until April 15, 2020, to invest money on a tax-sheltered basis for 2020. If some or all of your income comes from self-employment, you can set up a simplified employee pension (SEP) IRA up until the due date of your tax return, including extensions, and contribute up to 25% of your self-employment income. If you have the opportunity to choose between paying income taxes or funding your retirement, it should be an easy decision. While Roth IRA contributions are not deductible, IRA and SEP contributions are fully deductible depending upon your income, filing status, and participation in an employer plan. Income within a retirement plan – whether IRA, SEP, or 401(k) – is not taxed until you withdraw it.
Keep track of your charitable contributions: When you do good for others, you deserve to get some tax benefits. While you can include charitable contributions to qualified organizations in your itemized deductions, doing so may require a little extra documentation. For example, you can’t deduct a contribution of more than $250 unless you have a written acknowledgment from the organization. Also, noncash contributions may require different records, such as a description of what you donated and its fair market value. Be sure to get the full tax benefit of your generosity by keeping good records of all your charitable contributions to qualified organizations throughout the year.
Reinvested dividends: This isn’t really a tax deduction, but it is a subtraction that can save you a lot of money. And it’s one that many taxpayers miss. If, like most investors, you have mutual fund dividends automatically invested in extra shares, remember that each reinvestment increases your “tax basis” in the stock or mutual fund. That, in turn, reduces the amount of taxable capital gain (or increases the tax-saving loss) when you sell your shares. Forgetting to include the reinvested dividends in your cost basis-which you subtract from the proceeds of sale to determine your gain-means overpaying your taxes. TurboTax Premier and Home & Business tax preparation solutions include a very cool tool-Cost Basis Lookup-that will figure your basis for you and make sure you get credit for every dime of reinvested dividends. Find more information on https://greentree.tax/.