Question: Why does my best friend get a large refund compared to my refund?
- This is the most asked question we get—a tax return is made up of all the income and allowable deductions a taxpayer is allowed. Often the larger refunds come about because the taxpayer has several young children. The tax code is very generous to moderate income families with several young children.
- And—often the withholding is simply not enough based upon the family income. We can help you get the withholding corrected so there is not a surprise at tax-time!
- And—simply stated—each tax return is different, even if it seems that you and your best friend are similar.
Question: I’ve just got married—how should I file my tax return this year?
- As a general rule, it is best to file jointly—the married filing separate selection generally results in a combined higher tax bill for the couple.
- However, if either the husband or the wife has old tax issues, they can hang up any refund and the couple will find that the IRS has kept it to apply against the old tax issue. This is why we always ask clients married during the tax year several questions to help us determine if filing married and separate is a better choice:
- Old tax debt
- Delinquent on college loans
- Delinquent on alimony and/or child support
Question: What can I do to reduce my tax bill?
- This is almost always the first question we get asked when a taxpayer suddenly realizes that he owes a lot to the IRS—or—that his refund is much smaller this year!
- The answer can be complex—but if the income has substantially increased—then the tax bill will increase. If the taxpayer is able—we suggest taking a look at rental real estate—but we always warn him that he needs to understand real estate before investing. Of course, each situation is different, and we offer specialized tax planning services as an additional service to all clients.
Question: I have a business—should I incorporate?
- Once the business has survived a couple of years—we believe the answer is YES!!
- We offer incorporation services to our clients that takes care of the paperwork involved.
- There are a number of reasons to incorporate—just a couple of the main ones:
- Limits liability
- In Florida—much easier to get Workman’s Comp insurance
- Availability of obtaining Group Insurance—which is often less costly that individual insurance
- Helps with tax planning