Tax services services in Houston, Texas? Reinvested dividends: This isn’t really a tax deduction, but it is a subtraction that can save you a lot of money. And it’s one that many taxpayers miss. If, like most investors, you have mutual fund dividends automatically invested in extra shares, remember that each reinvestment increases your “tax basis” in the stock or mutual fund. That, in turn, reduces the amount of taxable capital gain (or increases the tax-saving loss) when you sell your shares. Forgetting to include the reinvested dividends in your cost basis—which you subtract from the proceeds of sale to determine your gain—means overpaying your taxes. TurboTax Premier and Home & Business tax preparation solutions include a very cool tool—Cost Basis Lookup—that will figure your basis for you and make sure you get credit for every dime of reinvested dividends.

Hold Off on Mutual Fund Purchases: People should be wary of buying mutual funds at this time of year if they will be held in a taxable account. You could get hit with a tax bill for year-end dividends even if you just purchased shares. “That’s how mutual funds work, but people don’t realize it,” says Joanna Powell, managing director in the Boston office of accounting firm CBIZ MHM. To avoid paying additional taxes, consult with a broker before making a purchase to find out when distributions are made.

A wage garnishment is any legal or equitable procedure where some portion of a person’s earnings is withheld by an employer for the payment of a debt. This is typically initiated through a court order or government agency action (such as an IRS levy) that requires an employer to withhold a percentage of an employee’s compensation. When notified of an order to garnish wages, an employer is legally obligated to make the appropriate deductions from an employee’s salary and direct payments to a designated agency or creditor. Read additional information at Bookkeeping Company In Houston.

Collect Pertinent Income and Expense Information: Around the end of January each year, employers, vendors, financial institutions, and others prepare and forward various tax forms and information pertinent to your filing. Create a set of files – whether that’s a large multi-pocketed accordion file, a group of large manila envelopes, or a digital filing system on your hard drive – to sort and separate the data into one of the following categories: Personal Information. This information should include your legal name, as well as the legal names of your spouse and all dependents. You also need their Social Security numbers and dates of birth. I also keep my primary bank information – account number and bank routing number – so I can request a direct deposit refund if circumstances warrant. Income. Common forms include W-2s from employers; 1099 forms for other types of income, such as self-employment, investments, and retirement distributions; and K-1s for any partnerships in which you participate. Keep a separate folder for security transactions so you can quickly determine holding periods from buy and sell dates to ensure you qualify for capital gains treatment wherever possible.

Your filing status can affect how much you owe in taxes each year, and whether or not you have to file at all. Consider whether your filing status will change during the year. For example, if you’re single but planning to get married by Dec. 31 of the current tax year, you may choose to file a joint or separate return with your future spouse when you file your taxes next year. Alternatively, you may be filing as a single taxpayer if you expect to get divorced during the year, or as head of household if you’re single and having a child or taking on another dependent.

This is a popular topic in 2020. Money are a big problem, as everyone knows. We will discuss about a few tax loan recommendations finishing with the introduction of a high professional company in US. We believe when it comes to your company, you should only hire the best bookkeeping services in Houston. Above all, we only hire the best bookkeepers as well as only QuickBooks experts so you can rest assure your company books are correct and accurate. Due to the complexity of taxes and state requirements, we only suggest you hire bookkeepers for your company. So, if you need any help for your company and in fact trying to get your taxes done accurately contact us here at Green Tree Tax for a free 30 minutes consultation. Find more info on GreenTree.Tax.