Tax Planning

SALT Credits – A Handy Guide to State and Local Tax Credits

December 10, 2021 | Mike Habib, EA

When it comes to matters regarding taxes and tax breaks, it’s important to know where you stand. The demand for professional tax services as of late is greater than ever before and if you’re a taxpayer yourself, you’ll instantly understand exactly why that is.

For anybody who is a taxpayer, not only does it pay to seek professional help, it also pays to understand the various tax breaks and deductions which could be available to you.

State and local tax credits for example, have been a hot topic as of late as it can potentially save you money in the form of a very handy deduction.

But what exactly are SALT credits and what is the important info that you need to know? Well, all will soon become clear as we share a very handy guide with you all about state and local tax credits.

Tax Credits You May Claim Now

November 19, 2021 | Mike Habib, EA

If you’re like most, then taxes are probably not your favorite thing in the world. But at the end of the year it’s always good to make sure that you don’t miss out on any deductions or credits – because let’s face it, money is tight and every dollar counts.

In this article we will go over 10 different tax credits that you may be able to claim in order to reduce your taxable income, and therefore the amount of taxes you owe. These include credits for charitable giving, education expenses, child care, retirement savings accounts and more and even better these are eligible for individuals and small business.

My name is Mike Habib and I’m here to tell you about tax credits for this year that can help save you some money. Whether you’re a freelancer, an employee with overtime hours, or just someone who wants to report losses from investments- there are plenty of ways for Americans to take advantage of what they deserve. So if you have questions about whether one credit applies to your situation we’ll cover it all in this article.

IRS Federal Tax Credits – Different Types of Tax Credits

October 18, 2021 | Mike Habib, EA

If you had the opportunity to receive a refund from the IRS or pay less tax legally than you thought you had to, would you take the opportunity or just let it pass you by? 9.9 times out of 10, you’d jump at the opportunity, and why wouldn’t you?

Despite there being numerous ways of paying the IRS fewer taxes, and indeed, of claiming back taxes and expenses that you weren’t aware you could, it turns out that every year, countless US citizens across the nation pass up these very opportunities by failing to take advantage of the IRS federal tax credits that they are legally entitled to.

Tax season may still be quite a way away yet, but it’ll soon be here before you know it and the last thing you want is to leave it until the last minute when filing your return, or worse still, to pay more tax than you should. If you are looking to reduce your tax liability, or even potentially enjoy a tax rebate from the taxman himself, familiarizing yourself with the various tax credits out there is highly recommended.

R&D Tax Credits – Important Things to Know

April 15, 2021 | Mike Habib, EA

As a taxpayer, one of the most daunting and potentially stressful times of the year is April 15th.

Staying in the good books of the IRS is imperative, not only for your finances and the reputation of your business, but also for your mental health and sanity in the process. This is where it pays to stay up to date with the various goings on in the world of taxation.

Lately, there has been a lot of talk surrounding R&D tax credits, and how they can potentially benefit large and small companies alike, regardless of which industry you happen to be involved in.

Of course, we recommend hiring a tax professional or seek our Los Angeles based professional tax services and providers if you wish to familiarize yourself with the intricacies of R&D tax credits, although to help make things that little bit easier, we’ll be looking at some important things to know below.

Get an evaluation today at 1-877-788-2937.

Save on Business Taxes – 6 Useful Planning Tips from the Experts

December 1, 2020 | Mike Habib, EA

As ruthless as the IRS can be, they aren’t completely heartless and they themselves know that businesses can’t be expected to hand over unreasonable amounts of profit every time they file their tax returns.

As a result of this, for people looking to save on your business taxes, the IRS is set up in such a way that it provides a series of tax savings, breaks aka deductions for individuals and business owners alike.

No Whittier, Los Angeles, or any other business owner wants to spend more money than they have to, and if you’re looking to maximize your profits and cut back on unnecessary spending, this is the perfect planning article for you.

Below we’ll be listing 6 useful planning tips from tax experts that will help you to save on your business taxes. If you’re not using the strategies set out below, hopefully you will by the time you’ve finished reading.

Want to save on federal & state taxes? Get a free evaluation by calling us at 1-877-788-2937.

Maximizing Profits Through Proper Tax Planning

September 1, 2020 | Mike Habib, EA

With more than 30 million small businesses in the US, effective tax planning is essential to maximizing profits and minimizing taxes, keeping more of what is earned, and lowering your taxes for the future. Understanding the intricacies of effective tax planning takes professional guidance to ensure that you are taking advantage of every opportunity. But there are some basic techniques that can be used to help lower you tax burden and maximizing profits coming into your business while reducing expenses.

Employee Benefits: These are mostly the incentives used to keep valuable employees. Such benefits include health insurance, contributions to life, long-term care, and disability insurance. And you may even include assistance for tuition, childcare, transportation, and even what you use for the cafeteria in your company.

Third quarter 2018 tax planning letter

October 16, 2018 | Mike Habib, EA

Dear Client:

The following is a summary of important tax developments that have occurred in July, August, and September that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

IRS shoots down states’ SALT limitation workaround. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) limits an individual taxpayer’s annual SALT (state and local tax) deductions to a maximum of $10,000, with no carryover for taxes paid in excess of that amount. (The SALT deduction limit doesn’t apply to property taxes paid by a trade or business or in connection with the production of income.) As a result of this change, many taxpayers will not get a full federal income tax deduction for their payments of state and local taxes. Following the TCJA’s passage, some high-tax states implemented workarounds to mitigate the effect of the SALT deduction limit for their residents. One method used was the establishment of charitable funds to which taxpayers can contribute and receive a tax credit in exchange. The IRS has issued proposed regulations, which would apply to contributions after Aug. 27, 2018, that effectively kill this workaround. The regulations would provide that a taxpayer who makes payments to or transfers property to an entity eligible to receive tax deductible contributions must reduce his or her charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive.

Client tax planning letter – Q2 2018

July 16, 2018 | Mike Habib, EA

Dear Clients:

The following is a summary of important tax developments that have occurred in April, May, and June of 2018 that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

The IRS released a new draft version of the 2018 Form 1040, U.S. Individual Income Tax Return. The new Form is markedly different from the 2017 version of the form and would replace the current Form 1040, as well as the Form 1040A and the Form 1040EZ. In addition to reflecting a number of changes made by the Tax Cuts and Jobs Act (TCJA; P.L. 115-97, 12/22/2017), the “postcard” draft form is about half the size of the current version and contains far fewer lines than its predecessor. However, this reduction in length is countered by the fact that the draft form has six new accompanying schedules.

Client letter – Q1 2018 tax matter

April 17, 2018 | Mike Habib, EA

CLIENT LETTER EXPLAINS RECENT DEVELOPMENTS THAT MAY AFFECT YOUR TAX SITUATION

Dear Clients:

The following is a summary of important tax developments that have occurred in the first three months of 2018 that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

2017 year-end tax planning letter

November 20, 2017 | Mike Habib, EA

Dear Client:

Congress appears poised to enact a major tax reform law that could potentially make fundamental changes in the way you and your family calculate your federal income tax bill, and the amount of federal tax you will pay. This letter is designed to help you cope with the changes Congress is hammering into shape right now—to take advantage of tax breaks that may be heading your way, and to soften the impact of any crackdowns. Keep in mind, however, that while most experts expect a major tax law to be enacted this year, it’s by no means a sure bet. So keep a close eye on the news and don’t swing into action until the ink is dry on the President’s signature of the tax reform bill.