by Karla Dennis | Jun 14, 2014 | Blog
In 2001, President Bush passed a series of tax cuts that mostly affect the tax strategy of the middle and lower classes. The tax cuts were approved as a temporary law, which means that after ten years they would expire. Many Americans held their breath as Congress evaluated whether these tax cuts would be renewed or allowed to expire. At the end of 2010, the tax cuts were approved to be extended until 2017. What do these tax cuts mean for your tax strategy and what kind of changes in taxing law can you expect if these cuts are allowed to expire? First, the Bush-era tax cuts changed the child-income tax credit from $500 to $1000 for each child in a home. That means that if you have three children, you are entitled to receive $1000 of government assistance. Even in your income is completely tax deductible, you can still receive the child-income tax credit as a credit on your tax return. If this cut expires, your tax strategy would have to change because you wouldn’t be allowed to claim money that was above and beyond the taxes that you paid during the year. Also, the cuts created a 10 percent tax bracket where each taxpayer would be mailed a check for all the current year’s savings. The cuts also protected middle-class couples more effectively from the marriage penalty by raising the tax bracket to 15 percent. It is easy to just continue to enjoy these tax benefits without thinking of how they will affect your tax strategy in the future, but considering your future tax strategy is the...
by Karla Dennis | Jun 12, 2014 | Blog
Karla discusses one of her favorite topics: three things that can be done when a taxpayer owes the IRS or the state money. Depending upon your situation one of these three options should apply to you and help you get relief from your tax debt. Don’t be afraid of owing the IRS or the state your hard earned money because there are ways to alleviate the problem. Listen how Karla and her team are here to...
by Karla Dennis | Jun 11, 2014 | Blog
Is your business’ entity in compliance? Most business owners start a business, but don’t really do the research to ensure their entity is the correct one for their specific situation. In this video Karla goes over the 4 main types of...
by Karla Dennis | Jun 10, 2014 | Blog
Most people like to think about tax strategy in April. Beyond that, it is business as usual. The problem with this mindset is that you can miss out of the many advantages future thinking can provide. Here are three reasons that you should consider putting together a lifetime tax strategy. First, when you think about your tax strategy as a lifetime effort, you can adopt a strategy that will lower your taxes. For example, if you own a home, the interest you pay on your mortgage is tax deductible. Because mortgages can affect the amount of taxes that you pay, you can consider a strategy that will give you the most return from your mortgage and that can save you money. Another reason to adopt a lifetime tax strategy is so that you can take advantage of the tax code. Millionaires seem to find all kinds of ways to work around a tax code because they are constantly thinking in advance. If you know what you want to accomplish in the future, your tax strategy can help make those dreams a reality. It just requires forethought. Finally, a lifetime tax strategy can ensure that you won’t have to pay more taxes than you have to. Tax provisions can be difficult to understand for anyone. The ability to take advantage of the tax exemptions and provisions available can save you thousands of dollars that will affect your 20-plus years of retirement. You don’t have time to not think about your future financial goals. One of the best ways to truly examine your tax strategy is to talk with a financial...
by Karla Dennis | Jun 6, 2014 | Blog
There are special roles that a tax resolution expert plays in the tax industry. In fact, there are times when a tax resolution expert is a vital advocate to keep on your side. The big question is how do you know if you should get a tax resolution expert or not? First, you should have a tax resolution expert if you owe back taxes to the federal government. Back taxes can often be much more than a person can handle. Your tax resolution expert can help you find as many deductions as possible that can work to reduce the debt. They can also work with the IRS to help you to reduce your debt or arrange a payment schedule to make the payoff more manageable. Second, a tax resolution expert can be helpful if the taxes are more expensive than you can handle. In any instance involving your tax debt it is better to get help as soon as possible. Waiting can only make your situation worse. Negotiating early can leave you with more options than waiting until you are threatened with an IRS lien. Finally, if there are questions on your taxes that you cannot answer, a tax resolution expert can help. They can help you wade through the complicated terminology of tax documents so that you can provide accurate information to the IRS. You don’t have to be in trouble with your taxes to work with a tax resolution expert. You don’t have to owe back taxes either. Sometimes it is better to work proactively on your taxes so that you can avoid any issue that could...
