by Karla Dennis | Dec 18, 2013 | Blog
Join Karla Dennis as she goes over the 3rd key to getting more cash out of your taxes.
by Karla Dennis | Dec 17, 2013 | Blog
Karla Dennis walks you through the tax organizer for 2013.
by Karla Dennis | Dec 16, 2013 | Blog
When your tax professional talks to you about tax strategy you will be asked whether you have tax credits that you can apply to your taxable income. Examining your tax credits is a vital to any good tax strategy because tax credits can actually lower the amount of taxes that you will pay, and that is money in the bank. Have you ever wondered exactly what a tax credit is? A tax credit works in two ways with your tax strategy. First, it lowers the amount of income that can be taxed. For example, if you make $40,000 in taxable income but have $10,000 in tax credits, it means that the government will only be able to tax you for $30,000. The second way a tax credit works in your tax strategy is by allowing you to refund the amount of the tax credit, regardless of whether you owe taxes or not. Congress has recently started using tax credits more and more as a way to encourage Americans to lean toward things like driving a hybrid cars or using energy star appliances in their homes. That is one reason why it is important to use a professional tax preparer as part of your tax strategy. He or she will know and understand current laws and tax credits so that you can get all of the money that is due to you. Your tax professional can help you claim tax credits by filing your taxes in itemized deductions. That means that every single expense and proof of that expense is listed on your taxes as proof of the tax credits...
by Karla Dennis | Dec 12, 2013 | Blog
You have probably heard the saying that there are two things in life that you can’t avoid: death and taxes. There may not be a way to get out of death, but with the right tax strategy you can avoid paying excessive taxes. One tax strategy that can save you a lot of money is simply to earn tax-free income. Tax-free income probably sounds like music to your ears, and means exactly what the phrase indicates. The government will not charge you for specific uses of your money, and you can actually use your tax-free earnings to knock down some of the other places where you pay taxes. Some of the most popular types of tax-free income that you can incorporate in your tax strategy include selling your house, saving money for your children’s education, putting your money into tax-free investments like municipal bonds, receiving health insurance from your employer, and spending a certain percentage of your salary on out-of-pocket health care costs. You may be asking yourself how a tax strategy that includes tax-free income will help you get out of paying taxes. The answer is actually quite easy. If, for example, you sell your house during the year, you can take the gain from the sale of your home and deduct it from your taxes. The law states that you can deduct up to $250,000 from the gain of your home from your taxes as long as you have lived in the house for more than two years. It’s a tax strategy that puts money in your pocket. Tax laws can be difficult for anyone, and if...
by Karla Dennis | Dec 11, 2013 | Blog
Join Karla Dennis as she goes over the 2nd key to getting more cash out of your taxes.
