Personal Tax Preparation in Laredo, TX

As we ring in a new year, we all know that April 15 is coming, and yet somehow it always manages to sneak up on many of us. Personal tax preparation can seem confusing and overwhelming if you are inexperienced or if your financial situation has changed considerably in the past year. Few of us have the organizational skills to consider preparing all year round, and the entire process can seem an endless supply of forms, receipts, and paperwork. Luckily, we can help.

Fortunately, there are a number of steps you can take to help you make completing your taxes a breeze, and one of them is to leave them in the hands of the experts. We offer experienced, comprehensive help and advice that may not only help you get your tax return filed early but also save you money in the process.

Here, we have listed some of the most important elements for you to consider. We also have hints for maximizing your tax deductions.

IRS

You probably know that the IRS, or Internal Revenue Service, is the federal tax collecting organization in the US. However, not everyone knows that collection and enforcement of taxes makes up only part of their duties. Believe it or not, the IRS doesn’t want to audit you; IRS employees want you to file everything correctly the first time, since it makes their own jobs much easier.

In this vein, they offer advice and assistance. Even with this assistance, however, there are still forms to fill out and complicated laws to understand. You might have a basic understanding of the process, but without detailed knowledge of the law, you could be leaving money on the table every year.

The best way to maximize deductions is to work with someone who understands the ins and outs of tax law. Additionally, the laws have changed recently, so it is imperative that whoever prepares your taxes understands the new legislation. You could try to struggle through it yourself, or you could accept help from those of us who understand tax law for a living.

Maximize Deductions

Whether you are planning to file your taxes yourself or outsource to a professional, it is worth considering the ways in which you can maximize your deductions early on. Planning throughout the year will ensure that you have easy access to the correct paperwork and records, which will help to simplify the process.

There are a number of clever ways to maximize your tax deductions.

1. Be smart with your mortgage.
You may feel as though your mortgage is a burden and an unwanted millstone around your neck, sucking away your income every month. However, here are tricks to make it work for you. You may not realize that the interest payments on most home mortgages are actually tax deductible; it is well worth checking to see if this applies to yours.

If you are savvy with your payment timings, there is a chance that you can increase your deduction for a particular year. For example, as we head to the end of 2018, you might make your payment for January 2019 now. Doing so will allow you to include the payment on your 2018 tax return. It is worth noting that the IRS measures the date the payment is actually made, rather than the due date, which can work in your favor.

2. Be meticulous with records.
It is important to retain copies of all payments you make, be they checks or banks transfers. Ask your lender for an end-of-year statement which lists all your payments; this will break down the figures into actual repayment and interest. Remember that only the interest is deductible.

3. Be picky with your loans.
Perhaps the time has come for renovations or repairs on your home. Maybe you have just reached a point where you need to access some cash for a large purchase, such as tuition or a wedding. Being smart with your choice of loan could net you a reduction on your tax bill.

For example, home equity loans, which are secured by your home, are eligible for deductions on the interest, which is definitely a more appealing option than an unsecured loan or rising credit card debt.

4. Be diligent in your reporting.
Of course, in order to benefit from these elements, the IRS needs to know about them. There is a specific form to report your home mortgage interest payments on the IRS website. Alternatively, give us the details and let us take care of the paperwork.

5. Be environmentally responsible.
If you make the decision to try and save the planet, start by improving your home. By implementing energy-conserving technology, you can not only make a difference but also reap rewards through your taxes.

In many cases, you can claim a tax credit for up to 30% of whatever you spend on these innovations, including solar electric systems, fuel cells, solar water heaters, geothermal heat pumps, and small wind energy systems. To access these savings, you need to remember to fill in the correct form. Alternatively, leave the hard work to us.

Exemptions

It is important to remember that you are entitled to a certain amount of exemptions before you are required to begin paying tax. This can be claimed as a deduction against your personal income when calculating your taxable income.

Taxes can be confusing and stressful, so why not leave the hard work to the experts? With over 20 years of experience, we can offer accurate and fast responses to your tax worries, and make the process as pain-free as possible.

From answering questions to specifying which forms you need to return, we can make the process a smooth experience while maximizing any credits or deductions you may be entitled to. Keep more of your money, and save your precious time with our thorough and effective service. Say goodbye to stress and drama at tax time!