Top status tax office firms in Houston, Texas? If you don’t have a tax preparer yet, a good way to find one is to ask friends and advisors (such as an attorney you know) for referrals. Be sure that the person you choose has a Preparer Tax Identification Number (PTIN) showing that they are authorized to prepare federal income tax returns. You should also inquire about fees, which are likely to depend on the complexity of your return. Avoid using a firm that intends to take a percentage of your refund. The IRS website has tips for choosing a preparer and a link to the IRS directory of preparers, which you can search according to their credentials and location.
When you earn a high income, you tend to pay a higher percentage of taxes than average earners. There are exceptions, of course, but in general, people who earn more pay more. And, if you’re a high earner, you might think you have no choice — that you must resign yourself to bearing a high tax burden. But is that really the case? The short answer is no. We spend a lot of time talking about tax planning with our clients, including those who have sizable incomes. In fact, one of the most common questions we hear is this: What’s the best way to reduce taxable income?
The QBI deduction has some other restrictions and limitations, so check with your tax preparer about your eligibility. Setting up and funding a retirement plan for yourself and/or your employees can save you money on taxes. Make sure it’s a qualified plan so you can take advantage of those tax savings. It must be one that’s recognized by the IRS to allow deferment of taxes on earnings until the earnings are withdrawn. They include IRAs and defined contribution plans such as a 401(k) or 403(b). Many options are available depending on your business, your goals, and your needs. Consider talking with a financial professional to figure out which is best for you. Find more information at https://greentree.tax/best-bookkeeping-service-in-houston-texas/.
Carving out a few minutes every January to make sure you’re making things easy for your accountant can help reduce the risk of a mistake come April or an audit later. But we recommend talking to your tax accountant more often than twice a year. In fact, we recommend chatting regularly — even monthly. You’ll have a better handle on your business and can plan for any tax law changes. Recording income and expenses in real-time allows you and your accountant to catch any mistakes early. And your accountant will know your business better and be more empowered to offer proactive, consultative advice. According to the OnPay 2019 Small Business Finance and HR Report, small business owners who have a strong relationship with their accountant are 32% more likely to expect a significant increase in revenue over the next year.