Year Ending Tax Saving Tips
Tax time will be here before you know it. Will you be ready? Don’t wait until it’s almost time to file your tax returns to learn about the latest tax saving tips. Hiring a Long Beach accountant to prepare your taxes is the best way to reduce your tax liability. Here are a few key tax saving tips that could keep more money in your pocket this year.
Top Tax Saving Tips:
* Business expenses: If you run your own business, many of your expenses are tax deductible. This is one of the most overlooked tax saving tips, because many business owners aren’t sure which expenses they can deduct. That’s why it’s in your best interest to hire a Long Beach accountant to ensure you keep as much of your hard-earned money as possible.
* 401(k) tax saving tips: Another tax saving tip is to increase the percentage of your 401(k) contribution. This lowers your taxable salary because 401(k) contributions are tax-free.
* Charitable contributions: Keep track of any donations you make to charities. Donations to qualifying charities like the Red Cross are tax deductible.
* Foreclosure tax saving tips: It’s no secret that the economic downturn was also affected by foreclosures. Until recent legislation was passed, you had to pay taxes on the amount of the mortgage reduction or restructuring. Now you may not have to pay taxes on the amount forgiven. Ask your Long Beach accountant about the nuances of the tax relief for foreclosures.
* Job search expenses: Millions of Americans have been job hunting since the economic downturn. If this includes you, don’t forget that you can deduct expenses if you searched for a new job this year. This includes deducting travel expenses, resume preparation, phone calls to prospective employers, career counseling, and much more. Ask your Long Beach accountant about additional tax saving tips related to a job search.
* Traditional IRA contributions: Remember that you can deduct contributions from your taxable income to your traditional IRA until April 15th.
* Accelerate deductible expenses: Do you have deductible expenses such as mortgage payments, medical bills, property taxes, and other expenses that are not due until next year? If so, they are deductible on this year’s tax return if you make the payment before December 31, 2010.
* Defer income: If you’re close to a lower tax bracket, you can decrease this year’s taxable income by deferring payments and income until next year. There are several tax saving tips for deferring income, including 1) deferring taxation on income from savings bonds, 2) asking to receive your year-end bonus when the new year begins, and 3) if you’re self-employed, delaying billings until near the end of the year. Your Long Beach accountant can provide more information on these tax saving tips to defer income.
Tax Saving Tips – Avoiding IRS Audits:
Your Long Beach accountant can protect you from IRS audits by ensuring the accuracy of your tax returns. Many business owners find themselves in the middle of an IRS audit because they prepared their own taxes and made many costly errors. One of the most important tax saving tips is simply to let a professional prepare your returns. It’s relatively inexpensive—especially when compared to fees that may be due as a result of an audit.
Keep More of Your Money This Year!
In addition to avoiding an IRS audit, you can make this tax season less stressful and increase your deductions with the above tax saving tips. Your Long Beach accountant can assess all of the additional deductions you can take to lower your tax liability for 2010. Visit www.Personal-Accountant.com or call 562.432.6100 to learn more.
