SACRAMENTO, Calif., Sept. 23, 2014 /PRNewswire-USNewswire/ -- Many tax professionals agree that autumn is the best time of year for planning your tax strategy, because you still have time before the end of the year to maximize your tax savings.
"Many taxpayers are wondering how the new tax laws may affect them and whether they qualify for any tax credits," said Patricia Kappen, EA, President of the California Society of Enrolled Agents (CSEA). "With all the tax changes taking place in Congress and the state Legislature, it is more critical than ever to have a qualified tax specialist on your side when preparing your tax and financial strategy."
One simple strategy that can minimize your tax bill in the spring is saving for retirement in a 401(k) or individual retirement account (IRA). With a traditional IRA, your contributions are deducted from your taxable income, thereby lowering your tax bill that year. When that money is withdrawn, it's taxed at your income tax rate at the time of withdrawal. With a Roth IRA, you contribute post-tax money. However, your funds are tax-free when you withdraw them from your account after your retirement.
There's also the Retirement Savings Contributions Credit (Saver's Credit). The Saver's Credit helps workers save for retirement while offering a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. You may qualify if your income is $60,000 or less (married filing jointly) in 2014.
The Earned Income Tax Credit (EITC) is a refundable credit for low-to-moderate income workers that can boost your refund by more than $6,000 depending on your income, filing status and the number of children in your family. Single workers with no dependents may also qualify for EITC. In these tough economic times, taxpayers whose income has decreased may find that they are now eligible for the EITC.
Tax professionals have become the go-to experts on the Affordable Care Act (ACA) for individuals and businesses. Starting in 2014, the ACA individual shared responsibility provision calls for each individual to have minimum essential health coverage for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. How can you be sure you're reporting this information correctly on your tax return? And what about the impact of recent and upcoming court rulings on those individuals who receive advance payments of the premium tax credit through the ACA?
In his April 8, 2014 written testimony before the Senate Finance Committee, IRS Commissioner John Koskinen lauded the partnership between the IRS and the tax professional community, while noting that approximately 60 percent of tax return preparers have "little or no federal oversight." In order to help guide you through the maze of complicated tax credit eligibility requirements and ever-changing tax laws, play it safe and choose a knowledgeable, federally-licensed tax professional such as an Enrolled Agent (EA). EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. Learn more about EAs, including how to find one near you, by visiting www.csea.org.
The California Society of Enrolled Agents (CSEA) is an association of more than 3,500 federally licensed tax professionals that offers Californians guidance in choosing a tax professional to assist them with tax planning, preparation and representation. Enrolled Agents (EAs) advise and represent their clients on all matters of taxation throughout the year, not just during tax time. If you have tax questions, your Enrolled Agent can assist you in ensuring that you do not pay too much, and help you minimize your risk of an audit. Visit www.csea.org or call 1-800-TAXPRO-5 to find an Enrolled Agent near you.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Kim Kastl, EA
http://www.profnetconnect.com/kim_kastl_ea
Jean Nelsen,EA
http://www.profnetconnect.com/jean_nelsen_ea
Kathy Rocha, EA
http://www.profnetconnect.com/kathy_rocha_ea
Dave Shaw, EA
http://www.profnetconnect.com/daveshaw
Raven Deerwater, EA, PhD
http://www.profnetconnect.com/ravendeerwater
Patricia Kappen, EA
http://www.profnetconnect.com/patriciakappen/go/shield/privateProfile
Lonnie Gary, EA, USTCP
http://www.profnetconnect.com/lonniegary/go/shield/privateProfile
Joseph Calderaro, EA
http://www.profnetconnect.com/joseph_calderaro
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SOURCE California Society of Enrolled Agents
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