Do you have questions about taxes? Do you know about the new tax reduction law?
We all want to pay our fair share of taxes but want to save as much as possible.
We are here to help you understand taxes and to answer any questions that you may have. Our guide has all the must-know tax questions you should ask a tax expert.
1. What Deductions and Credits Am I Eligible For?
Knowing what deductions and credits you are eligible for is one of the most important tax questions you need to be asking. Different types of tax deductions and credits may be available depending on your situation, such as:
- Family size
- Type of investments
- Business ownership
Common deductions and credits may include the following:
- Earned Income Credit
- Child Tax Credit
- Dependent Care Credit
- Retirement Savings Contribution Credit
- Charitable Donation deduction
It is also important to research what credits and deductions may be specific to your state. If you are uncertain about any deductions or credits you are eligible for, consult with a tax professional.
2. Are There Any Changes to Tax Laws That Could Impact Me?
Ask your accountant if any changes may apply to you such as an increase or reduction of your marginal tax rate or the implementation of a new tax credit or deduction. Moreover, make sure you are aware of any fringe benefits tax implications since these can be particularly complicated.
Depending on your financial situation, you may want to ask if you could potentially benefit from switching to a higher or lower marginal tax rate or by taking advantage of any new deductions which may benefit you.
3. How Should I File My Taxes?
If you are someone who needs to file taxes, then it is essential to understand the various tax strategies and filing options available. It is important to ask questions about taxes and filing to make an informed decision, no matter if it is your first time or if you are a seasoned tax pro. Asking questions about taxes can reveal potential filing strategies that you may not even know existed, leading to greater returns overall.
4. Can an Offer in Compromise Program Help Me?
It is important to ask whether an offer in compromise program can help if you are struggling to pay your taxes. The taxpayer and the IRS enter into this program. That allows the taxpayer to resolve their tax debt for an amount lower than the original owed sum through an agreement. Qualified candidates will make a lump sum or installment payment plan to satisfy the tax liability and are not required to pay the full amount.
5. How Long Should I Keep My Tax Records?
In general, taxpayers should hang onto records for at least three years from the filing date of their return. However, records for taxes related to the purchase or sale of assets should be kept for seven years because most state statutes of limitations for assessing additional taxes related to transactions involving assets are six years.
Don’t Hesitate to Ask Questions About Taxes
When filing taxes, it pays to be an informed taxpayer. Knowing the answers to questions about taxes such as how to file, what credits/deductions are applicable, and how to properly track expenses can make all the difference.
Consulting a professional is the best way to ensure all of your questions are answered and that you get the highest return possible. Don’t delay – contact tax professionals near you today!
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