Roseville, CA Accountant (CPA) for Income Tax Planning
A Roseville accountant for income tax planning at Cook CPA Group helps clients plan their income taxes for a better future. Call for a free consultation.
Taxes are usually regarded as an unpleasant reality. However, with some basic planning around your income taxes, the experience can be manageable. By reducing your taxable income, increasing the deductions that you claim, and taking advantage of tax credits, you can make the most of your taxes. You don’t have to plan your income taxes alone. Use the help of an experienced Roseville income tax planning CPA from Cook CPA Group to understand your income, tax rules and expectations, how to best claim deductions, and possible credits that you may qualify for.
3 Ways to Save Money on Income Taxes in Roseville, CAThe best way to pay taxes in Roseville, CA is to plan carefully so that you owe as little money as possible to the IRS. There are three main ways to reduce the amount that you owe in taxes: reducing your taxable income, increasing your deductions, and taking advantage of credits while avoiding additional taxes.
Reduce Your Taxable IncomeYou can reduce the amount of income that is taxed by understanding your adjusted gross income (AGI) and reporting all of your sources of income and adjustments. Your adjusted gross income determines your tax rate and the tax credits that you will receive. It also plays a large role in other financial determinations, including mortgages and financial aid for education programs. Your AGI is calculated based on the income and adjustments that you claim on Schedule 1 of Form 1040. Aside from those received from regular employment, sources of income may be state tax refunds, income from self-employment, capital gains, and compensation from unemployment. Adjustments that may be claimed, on the other hand, include contributions made to an IRA, student loan interest, and contributions to health savings accounts. Other adjustments are determined by the industry that an individual works in – e.g., educators may claim classroom-related expenses. In some cases, moving expenses may be claimed as an expense by members of the armed forces.
Maximize Tax DeductionsA crucial choice that must be made when preparing income taxes is whether to claim the standard deduction or itemize your qualifying deductions. Possible itemized deductions you may claim include:
- Expenses for health care exceeding 10% of your adjusted gross income
- Local and state taxes up to $10,000 ($5,000 if you are married)
- Property taxes
- Interest on mortgages
- Charitable donations
- Losses as the result of a national disaster