Navigate the complex world of taxes with confidence. Our comprehensive guide covers essential tax strategies for individuals, businesses, and financial planning.
Personal tax strategies and deductions to maximize your refund
Business tax optimization and compliance strategies
Financial planning and investment tax considerations
Personal tax optimization strategies
Tax Incentives for Higher Education: The tax code provides a variety of tax incentives for families who are paying higher education costs or are repaying student loans. You may be able to claim an American Opportunity Credit or Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family who are enrolled in eligible educational institutions.
Check Withholding to Avoid a Tax Surprise: Whether or not you owed taxes or received a refund last year, check your tax withholding to avoid having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
5 Tips For Early Preparation: Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund.
Amended Returns: Oops! You've discovered an error after your tax return has been filed. What should you do? You may need to amend your return.
Ayuda en Español: If you need federal tax information, the IRS provides free Spanish language products and services. Pages on IRS.gov, tax topics, refund information, tax publications and toll-free telephone assistance are all available in the Spanish-language.
Filing an Extension: If you can't meet the April 15 deadline to file your tax return, you can get an automatic six-month extension of time to file from the IRS. The extension will give you extra time to get the paperwork into the IRS, but it does not extend the time you have to pay any tax due.
Car Donations: The IRS reminds taxpayers that specific rules apply for taking a tax deduction for donating cars to charities.
Charitable Contributions: Your donations can add up to a nice tax deduction if you itemize deductions on IRS Form 1040, Schedule A.
Earned Income Tax Credit for Certain Workers: Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes.
Refinancing Your Home: Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans.
Selling Your Home: If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return.
Deductible Taxes: Did you know that you may be able to deduct certain taxes on your federal income tax return? The IRS says you can if you file Form 1040 and itemize deductions on Schedule A.
Gift Giving: If you gave any one person gifts valued at more than the gift tax annual exclusion amount, it is necessary to report the total gift to the Internal Revenue Service.
Marriage or Divorce: Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration (SSA).
Filing Deadline and Payment Options: If you're trying to beat the tax deadline, there are several options for last-minute help. You can get a six month extension of time to file using Form 4868.
Refund, Where's My Refund?: If you file electronically, your refund should be issued in about half the time it would take if you filed a paper return, even faster when you choose direct deposit.
Tips and Taxes: Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those services is taxable income, advises the IRS.
Corporate tax strategies & compliance
Organizational and Start Up Costs: Have you just started a new business? Did you know expenses incurred before a business begins operations are not allowed as current deductions?
Business or Hobby?: It is generally accepted that people prefer to make a living doing something they like. A hobby is an activity for which you do not expect to make a profit. If you do not carry on your business or investment activity to make a profit, there is a limit on the deductions you can take.
Deductible Home Offices: If you are self-employed and you use a portion of your home exclusively and regularly for business purposes, you may be able to take a home office deduction.
Filing Deadline and Payment Options: If you're trying to beat the tax deadline, there are several options for last-minute help. You can get a six-month extension of time to file using Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.
Refund, Where's My Refund?: Are you expecting a tax refund from the Internal Revenue Service this year? If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return, even faster when you choose direct deposit.
Your Appeal Rights: Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.
Information About IRS Notices: It's a moment any taxpayer dreads. An envelope arrives from the IRS and it's not a refund check. But don't panic. Many IRS letters can be dealt with simply and painlessly.
Charitable Contributions: When preparing to file your federal tax return, don't forget your contributions to charitable organizations. Your donations (up to 10% of taxable income) can add up to a nice tax deduction for your corporation.
Investment & financial planning strategies
Tax Saving Techniques: Some generally recognized financial planning tools that may help you reduce your tax bill.
Deducting Mortgage Interest: If you own a home, you can claim a deduction for the interest paid. To be deductible, the interest you pay must be on a loan secured by your main home or a second home. The loan can be a first or second mortgage, a home improvement loan, or a home equity loan.
Capital Gains and Losses: Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. The IRS says when you sell a capital asset, such as stocks, the difference between the amount you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss.
Coverdell Education Savings Accounts (ESAs): A Coverdell ESA is a savings account created as an incentive to help parents and students save for education expenses.
Individual Retirement Accounts (IRAs): You may be able to take a tax deduction for contributions to a traditional IRA, depending on whether you or your spouse, if filing jointly, are covered by an employer's retirement plan and how much total income you have. Funds in the account grow tax-deferred, and you pay tax when you take distributions. Conversely, you cannot deduct Roth IRA contributions, but the earnings on a Roth IRA may be tax-free if you meet the conditions for a qualified distribution.
Let our expert team at Vanguard Edge LLC create a customized tax strategy for your unique situation.