Jeff Pickering, CPA in the Plano, Texas chats with Patrick Dougher, host of The Business Spotlight on this Google Hangouts edition of Tax Talk. This week’s discussion is about Reducing your AGI on your tax return.
This year is no different from any other year. Talk time rolls around and you are staring at your blank return wondering how many deductions you can take, and how you can avoid having to pay income taxes.
Many older taxpayers have some tax advantage. If they look into their tax strategies for 2014 they will find the Roth IRA is a great way to keep your retirement fund and still be able to take some out without paying additional taxes. Many people don’t realize that 401K plans are usually audited. If you were to speak with a CPA knowledgeable about taxes you will find there are ways to utilize your 401K legally to aid your business. You don’t get an immediate deduction to a Roth IRA, but if you do it right you won’t have to pay taxes on it when you take your money out.
Small business owners have some special tax advantages, and a diverse number of choices that they can use in order to expand their business and have some tax advantages. By following Jeff’s, or your tax consultant’s suggestions you can reduce your AGI and save you money on your taxes.
Any service provider you pay over $600 in one year will have to be given a form 1099. Incorporated business (with the INC) in their name do not need them. Many corporations do not know this. For this reason it is advisable to NOT do your taxes yourself, but have a professional do it for you.
Most people wonder if they have to file their taxes. Older workers who make less than $54,000 do NOT have to file. The more money you make, the better the chance of having to pay taxes on your social security. Married people whose income is less than the standard deduction do not usually have to file. Unfortunately, it can become complicated as to who does or does not file. so to understand the tax strategies for 2014, it is best to speak with a professional tax consultant and accountant.
If you file and you don’t actually have to, he recommends you file anyway. Filing the return will put a limit of three years on the statute of limitations for the IRS to come back and audit you. You have three years to change your change return if you made a mistake.
If you would like to get ahold of Jeff Pickering CPA, and learn more about reducing your AGI, you can contact him by phone at 972-378-5200; Email him at jeff@pickeringcpa.com ; or visit his website at http://www.PickeringCPA.com.
