How To Choose The Best Tax Preparation Service For Tax Savings [Tax Related Services, Fremont Ca]

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Smart Ways to Reduce Your Tax Burden
In times when most people hate paying taxes and keep looking for ways to evade it, it comes as a funny surprise that more than 65% people end up paying extra taxes simply because they fail to take advantage of the various tax saving schemes introduced by the IRS from time to time.
Hiring professional tax service Hayward/Fremont is a good way to learn about the new schemes, tax deductions and credits introduced by the state. In addition to this, you can also use some of the tips given below to reduce your tax burden:
1.) Reducing AGI (annual gross income) – The best way to lower your tax burden is by reducing your taxable income. This can be achieved by taking advantage of the tax saving schemes such as investing in certain funds, retirement plans and the traditional IRS plan. Such investments ensure reduction in AGI and offer long-term benefits. However before keeping money in these funds, ensure that your basic financial needs are met.
2.) Tax Deductions – Another area which most people miss out are the tax deductions. A wide variety of business expenses are eligible for tax deduction; failing to list them while filing tax returns for Corporations Hayward/Fremont can result in higher taxes. Therefore it is best to log in the business expenses on a daily basis. It doesn’t matter which class (business/salaried) you belong to, maintaining record for each and every transaction can be very useful.
3.) Charity – Both charitable donations and gifts are exempted from taxes. Therefore, feel free to donate clothes, furniture, food and other utility items to recognized charitable organizations. Don’t forget to take a receipt for every donation made, as you can claim deductions on all of these while filing your tax returns. Another option is to give away money or property to your children as gift. These qualify for the gift tax exclusion benefits and are non-taxable.
4.) Personal Business – If you are running a business from your house, calculate the space (total square feet) used for your business activities and claim its rent under deductibles. Even the equipments and accessories purchased for the purpose of business are exempted from taxes.
You can also employ your children or family members and make payments to them by cheque, claiming tax deductions on the amount paid as salaries. Itemize your miscellaneous expenses such as annual club membership fee, business taxes, licensing fee, business loan interest, insurance premium etc., and list them under deductibles while filing tax returns.
5. Tax Credit – Tax credits are a great option provided by the IRS to help reduce the tax burden for individuals. Credits include a number of expenditure like child and dependent care credit, children’s tuition fee, credit for elderly and disabled, credit for life time learning, child adoption, alimony paid, retirement saving contribution etc.
Both the IRS and state legislatures offer ample tax saving opportunities; however most of us forget to claim those deductions either because of lack of awareness or hasty tax planning. Thus it is best to hire professional tax service Hayward/Fremont to help you with tax preparation and planning. Right tax advice offers a two-way advantage – it reduces your tax liability and helps you with long-term financial planning.


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