Simple Accounting
Russell W. James, CPA, pc

Reduce My Tax

Some simple ways to reduce your taxes:
  • I.R.A.'s and 401-K's:  Where else can you take a tax deduction and keep the money too?  Heck you may even qualify for the Saver's credit... one of the few legal "double dips" in tax law.
  • Benefit Plans:  Many employers offer tax-saving incentives to their employees.  Check them out, take advantage of what you can.
  • Have Exemptions (Kids):  OK, this may not be a good financial investment, but if you have them anyway, there are credits, exemptions, and deductions.
  • Tax Credits:  There are credits and deductions available for energy-efficient upgrades, child care, contributing to an IRA, and many more.
  • Keep Records:  Mileage for charity, medical, or business purposes, receipts and notes.. anything you even suspect might be deductible... write it down, bring it in.
  • Accelerate Deductions:  If you are considering doing something deductible, doing it in the current year results in a quicker tax break.  This would be applicable to expenditures you will make for a good reason.. Not an excuse for frivolity.
  • Depreciation Incentives:  You have choices of the timing of depreciation the year you buy a fixed asset.  You don't have to decide until you file.
  • Get Educated:  There are credits and deductions available for higher education, and when you finish you might qualify for a higher-paying job.
  • Change Business Structure:  Sometimes a different structure pays off.
  • Ask Questions:  There are loads of books and articles dedicated to tax reduction.  Don't have time to read them?  Ask us what might benefit you.
A few things to avoid:
  • Tax Schemes:  There are lots of these around.  Everyone has a "brother-in-law" who does some weird thing and gets away with it.  But, if it sounds too good to be true, it probably is.  People get away with lots of things, at least until the audit...
  • Head-In_The-Sand:  Tax issues don't go away by themselves.  Stay compliant.  Don't ignore tax notices.  Bring them in, we do not charge to review a tax notice.
  • IRS Phony Phone Scams:  Don't fall for this scam.  The IRS will always notify you by mail.  Don't talk to the scammers.  Don't call them back.  Call us.
Website Builder