High class tax office firms in Houston, Texas? That might not seem like an advantage, but it is. Any income earned on the money in your Roth IRA is also tax free. You can even roll over the money in a traditional IRA or a 401(k) into a Roth IRA and reap the same benefits. Some of the best times to do a Roth IRA conversion are when you’ve had a year with less income than the previous year, or when you’ve retired and are temporarily in a lower tax bracket. This strategy makes sense if you can wait until the age of 70 ½ to make mandatory withdrawals. We like to suggestion this option to our clients because it’s easy to overlook, especially when people are focused on tax deductions as a way of reducing their taxable income.
The sooner you meet with your preparer, the sooner you should be able to complete your return (even if you decide to file for an extension, as discussed later). If you anticipate a refund, you’ll get that sooner, too. If you wait too long to schedule an appointment with a tax preparer, it might not happen before April 15, and you could miss out on opportunities to lower your tax bill, such as making deductible contributions to an IRA or a health savings account.3? 4? Note: for 2020, the deadlines for making these contributions and for filing taxes is July 15.
Hold Off on Mutual Fund Purchases: People should be wary of buying mutual funds at this time of year if they will be held in a taxable account. You could get hit with a tax bill for year-end dividends even if you just purchased shares. “That’s how mutual funds work, but people don’t realize it,” says Joanna Powell, managing director in the Boston office of accounting firm CBIZ MHM. To avoid paying additional taxes, consult with a broker before making a purchase to find out when distributions are made.
The Internal Revenue Code is set up to provide numerous tax breaks to individuals and businesses alike. Even the IRS acknowledges that you must keep some money to live on and with which to run your enterprise. Some small business tax savings strategies, like timing income and expenses, must be accomplished before the end of the tax year. But others, such as funding a retirement plan, can be done at any time before you file your tax return. See more details at https://greentree.tax/bookkeeping-services-near-me-houston-tx/.
Be Pleasant and Control Yourself. The tone you take with your voice can impact how successful the conversation will be. If you start off the conversation with a friendly, non-confrontational tone, the customer may respond more positively. Once you have confirmed that you are speaking to the correct person about the unpaid invoice, ask if you can do anything to help. Ask if they need any additional information. If you act like you care or can understand the debtor’s side of the story, you may be able to prevent the person from becoming defensive. However, remain detached from the situation. Your job in debt collections ultimately is to collect the debt in full as soon as possible.
When you offer a 401(k) or other qualified retirement plan, employer contributions and some administrative fees are tax-deductible if they meet certain criteria. And qualified employers can receive a $500 per year tax credit for the first three years of the plan. Plus, as an employee of your practice, you will be able to take advantage of tax-deferred savings with your company 401(k) as well. To make sure the plan seamlessly integrates with your current back-office systems and payroll deductions, contact your payroll services provider to see what retirement savings plans they offer. See even more information on tax services in Houston.