Accountant BrooklynAugust 9, 2018
CPA Brooklyn New YorkOctober 15, 2018
3 Fall Tax Tips
Tax Town of Brooklyn is here to take the stress out of your tax season
Tax Town of Brooklyn offers services in tax preparation, corporate taxes, payroll services, tax audits, and estate taxes. The last thing you want to worry about is finding a tax lawyer Brooklyn or tax attorney Brooklyn in the midst of spring. Rather than scavenge the yellow pages in search of financial clarity, call an Accountant Brooklyn at Tax Town. In the meantime, you can also follow these three fall tips to ease your stresses once tax season rolls around:
- Defer your income: By delaying billings until late December, payments will not be received until the following year. This process is much easier for self-employed or freelance individuals, however deferring income by taking capital gains can result in qualifying for a lower tax bracket. Good payments to defer would include year-end bonuses if they are inline with your company’s practices.
- Watch Flexible Spending Accounts: Flexible Spending Accounts are specific accounts that you put money into which can later be allocated towards out-of-pocket health care costs. This money dodges both Social Security and income taxes. There is a small drawback which is the concept of “us it or lose it.” The money not spent disappears. In the beginning of the year you decide how much money is put into this account. When the the end of the year approaches, it is important to see if your employer qualifies for the grace period allowed by the IRS. This permits employees to spend the set-aside money for up until March 15th. If your employer does not qualify, you can take some trips to your dentist or local drug store to drain the funds in the account.
- Maximize Retirement Plan Contributions: Another tip not to be overlooked this fall is taking into consideration your retirement plan contributions. If you and your spouse are not covered by a plan at work, you can deduct up to $5,500 from your taxes. If your employer is one to match your contributions, you should strive to allot the maximum amount possible towards your 401(k). Funds grow tax-free regardless if they are matched or not.
Your neighborhood Account Brooklyn is here to simplify your life and maximize results by offering this insiders insight. Contact Tax Town Brooklyn for more information.