Tax Preparation
The Eldridge Group understands the importance of filing taxes properly to ensure that largest refund, while complying with the tax codes. The tax preparation service provided to the clients is the highest quality in the industry. Unlike tax programs you can use online or purchase for your computer, The Eldridge Group is able to adapt to every individual's situation. This flexibility ensures you will receive the largest refund possible.
How to Get a Bigger Tax Refund
After you work hard all year for your money, you realize it comes with one big string attached: taxes! Paying your taxes can be a difficult task; the U.S. tax code fills literally thousands of pages. This makes tax return preparation confusing unless you keep educated on the changes each year.
How can you make sure you are receiving the largest refund possible? Consider four points that may make your taxes less taxing:
1. Learn how to reduce your taxable income with deductions. A tax deduction is an amount that the IRS allows you to subtract from your taxable income. Deductions do not reduce your tax bill dollar by dollar. This means that the value of a deduction is based on what tax bracket you are in. If you're in the 25 percent tax bracket and you deduct something worth $1,000, you're saving $250, or 25 percent—not the full $1,000. An often overlooked deduction is non-cash charitable contributions. Items given to Goodwill or the Salvation Army can be deducted at fair market value, but you must keep your receipts. Another forgotten deduction is unreimbursed employee expenses. Do you work from home? Are you a salesman? See us about maximizing these deductions on your return.
2. Cut your tax bill directly using tax credits. Unlike deductions, tax credits represent a dollar-for-dollar reduction of your tax bill. The most common tax credits are child or dependent care, education, energy, and earned income tax credits. It’s like going to the grocery store with a $3 coupon. If your total bill is $75, using the coupon means you only pay $72. Tax credits reduce the amount of tax you owe in the same way.
3. Document, Document, Document. Most tax deductions are allowed because of proper documentation. For example: miles driven for business purposes can be deducted at the rate of $.50 per mile, but you must document that business expense in a log! After successfully filing your tax return, avoiding whatever taxes you can, you still need to protect yourself against IRS audits. I suggest you save all supporting materials that you use to create your tax returns for at least seven years. The IRS has a deadline of three years to challenge your tax return under normal circumstances.
4. Find a good tax professional. It’s best not to go it alone. A good tax professional will look to see if you qualify for any tax credits, and whether you can itemize your deductions. A Good tax professional will also stand by you in the event that your return is chosen to be audited. The investment you make in a good tax professional, like the ones at The Eldridge Group, may be the best investment you can make this year.
After you work hard all year for your money, you realize it comes with one big string attached: taxes! Paying your taxes can be a difficult task; the U.S. tax code fills literally thousands of pages. This makes tax return preparation confusing unless you keep educated on the changes each year.
How can you make sure you are receiving the largest refund possible? Consider four points that may make your taxes less taxing:
1. Learn how to reduce your taxable income with deductions. A tax deduction is an amount that the IRS allows you to subtract from your taxable income. Deductions do not reduce your tax bill dollar by dollar. This means that the value of a deduction is based on what tax bracket you are in. If you're in the 25 percent tax bracket and you deduct something worth $1,000, you're saving $250, or 25 percent—not the full $1,000. An often overlooked deduction is non-cash charitable contributions. Items given to Goodwill or the Salvation Army can be deducted at fair market value, but you must keep your receipts. Another forgotten deduction is unreimbursed employee expenses. Do you work from home? Are you a salesman? See us about maximizing these deductions on your return.
2. Cut your tax bill directly using tax credits. Unlike deductions, tax credits represent a dollar-for-dollar reduction of your tax bill. The most common tax credits are child or dependent care, education, energy, and earned income tax credits. It’s like going to the grocery store with a $3 coupon. If your total bill is $75, using the coupon means you only pay $72. Tax credits reduce the amount of tax you owe in the same way.
3. Document, Document, Document. Most tax deductions are allowed because of proper documentation. For example: miles driven for business purposes can be deducted at the rate of $.50 per mile, but you must document that business expense in a log! After successfully filing your tax return, avoiding whatever taxes you can, you still need to protect yourself against IRS audits. I suggest you save all supporting materials that you use to create your tax returns for at least seven years. The IRS has a deadline of three years to challenge your tax return under normal circumstances.
4. Find a good tax professional. It’s best not to go it alone. A good tax professional will look to see if you qualify for any tax credits, and whether you can itemize your deductions. A Good tax professional will also stand by you in the event that your return is chosen to be audited. The investment you make in a good tax professional, like the ones at The Eldridge Group, may be the best investment you can make this year.
