subject: Is Your Tax Professional Really the Problem? [print this page] What happens every year around tax filing time? The amount of lawsuits in the United States goes through the roof! The problem? Nobody likes to pay taxes. This leads to complaints about the government, IRS and tax prepares, in some cases. Often the question of whether a bigger problem may be found in the mirror?
Like most people treat their taxes? Common, admit it. If you are in the majority, you start thinking about the problem somewherearound the middle of March or even later! It is usually a get together in the frantic attempt to documents. Then just click from your tax preparer's office and they can drop it in an envelope. I even know someone who leads a shoebox of receipts!
While there is nothing illegal or wrong per se with this approach, it is foolhardy. Who in this approach has no right to complain about taxes. Why? You have no effort to minimize their tax liability by some madePlanning. Let's look at a classic example of how this could happen.
They work for the man! Its okay, you will enjoy working in the company. Better still, the company offers a wide range of benefits and a 401 (k) is on the process list. You put $ 5,000 this year and know you should put in more. The holidays hit, however, and you do not, even though you have a lot of money aside. You could in $ 16,500 in 2009, which means that you put on the left of $ 11.500 on the table. This is calledreported to the IRS as taxable income, which means you have the taxes on this amount instead of sticking to) pay it in your 401 (k too. Well, who's to blame?
This is an obvious example, but it happens all the time. Those who say amortization are dead are wrong. You are not dead they have simply changed. The area where you're really save on your tax liability in those days, no tax deductions, but tax credits. There are a ton of them, and they reduce your tax dollarsfor the dollar. Check with your tax professional and use map, a plan
