BAKERSFIELD, Calif./ACCESSWIRE/January 18, 2022/ Tax planning is something that many people around the world find difficult. From insufficient knowledge of income tax to neglecting to maintain an up-to-date tax profile. Many individuals and small businesses often find themselves in common tax traps that can have far-reaching effects on the future incomes of individuals, families, and businesses. A lack of adequate knowledge about the benefits of good tax planning and access to vital information about the consequences of tax non-compliance leads many to ignore tax issues and think there is not much thing to fear. However, this is not a way to have peace of mind and to save the maximum in income tax. But, some of the common tax pitfalls can land you in tax accrual trouble in retirement.
Many people are still shocked when they realize how huge their tax burden is and even find themselves unprepared to live on their retirement income. Although most people plan how to live off their future income, they often fail in their homework of proper tax planning. As a result, many people fail to achieve their dreams due to their unfamiliarity with ever-changing tax laws and regulations. Accumulated taxes and penalties can have a devastating effect on individuals’ future financial plans, including retirement income. Moreover, it can also leave families in very difficult situations when a family member dies. To avoid life-changing tax problems, tax planning services come in handy.
Keith Stoller, the founder of Stoller Associates, has been providing tax planning services to residents of California, USA for over 35 years. Stoller has dedicated his life to small business owners who pay taxes to achieve maximum income tax savings based on each individual or family’s situation.
Stoller explains that engaging tax planning services can help minimize tax liability and maximize tax relief in an efficient and legal manner. And with the tax landscape rapidly changing, Stoller recognizes that tax issues become complex over time. With the many tax bills pending, managing tax matters does not seem easy as future tax uncertainties loom. Therefore, families intending to pass on substantial wealth to future generations should use efficient techniques with low interest rates. These techniques include intra-family loans and grantor-retained annuity trusts (GRATs). However, taking your time and learning to use complex tax rules to your advantage can significantly change what you pay or get back when you file your taxes.
Additionally, Stoller emphasizes the difference between tax deductions and tax credits to help develop effective tax strategies that help lower your tax bill. Tax deductions reduce the amount of your income subject to tax, while the tax credit reduces your tax bill. For example, a tax credit of $1,000 reduces your tax bill by $1,000. In addition, knowing the tax deductions available and who is entitled to them can help you achieve maximum income tax savings by taking into account all the tax deductions and credits to which you are entitled. Stoller also reveals that keeping a clean tax record can help in the event of an audit.
Little known to many small business owners, independent contractors, and employees, good tax planning can lower taxes and lower business expenses through tax refunds and deductions. With health care expenses being one of every business owner’s concerns due to the limited deductibility of business owner expenses under generally understood rules, Stoller explains some of the lesser-known tips for increasing health care limits. medical insurance deductible to reduce health care expenses. thanks to good tax planning.
“Lesser known and understood is Section 105 of the Medical Expense Reimbursement Plan (MERP), which allows medical bills to be written off as legitimate business expenses. Proper planning and structure are great and often overlooked mechanisms to absorb medical expenses in the most tax-efficient way,” Stoller revealed.
“If the above is a little too much to understand, just put in a MERP. This is an accounting device that allows you to reclassify your otherwise non-deductible family medical expenses as deductible business expenses. If structured properly, you can reduce self-employment taxes (if applicable) as well as corporate and personal taxes,” Stoller added.
However, this plan is only available to employees. Therefore, one must be registered as an employee of a company to qualify. That said, sole proprietors are not eligible for the package. Nevertheless, there is a workaround for sole proprietorships and partnerships. Stoller explains that a sole proprietor can hire a spouse as an employee and still benefit from the repayment plan. When it comes to employee and independent contractor tax compliance, Stoller emphasized sound tax planning rather than using illegal means to reduce tax liability and then fall into fines and consequences. regrettable legal. Although some businesses incorrectly classify their employees as independent contractors to save on the payroll and benefits tax burden, this reckless act can cause serious problems for a business owner if the IRS finds out about it. misclassification, Stoller said.
Keith Stoller is a tax and finance expert with great passion and experience guiding people towards better tax and financial planning. With his team at Stoller Associates, he offers the best tax services tailored to meet individual client needs. Stoller has helped hundreds of people in the state of California get rid of their tax burden and experience freedom like never before.
Learn more about Stoller Associates through their professional website https://stollerassociates.com/ and find out more about saving on your income tax.
Company Name: Stoller Associates
Contact person: Keith Stoller
Address: 5500 Ming Avenue, Suite 120, Bakersfield, CA 93309
Website link: https://stollerassociates.com/
THE SOURCE: Stoller Associates
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