5 Reasons to Hire A Tax Consultant

If you are like most people when it comes to taxes, you don’t feel confident in what you are doing. A tax consultant can help relieve stress and reduce mistakes while filing taxes. Check out five reasons why you should consider hiring a tax consultant.

1. You Find A Mistake On A Previous Return

Have you found a mistake on a previous tax return in the past three years? You can work with a tax constant to file an amended return. A consultant can help to minimize any damage that may have been caused. It can also provide you with peace of mind in knowing that your tax return will be properly handled.

2. Your Marital Status Has Changed Tax consultant

Have you gotten married or divorced in the last year? If so, your tax filing may be affected.

  • Newly Married Couples: A consultant can help you decide whether to file your taxes together or separate. It is helpful to get a tax consultant’s opinion of what will be most beneficial since every couple’s situation is different.
  • Recently Divorced Couples: A consultant can help you determine if it is best to file separate or together. They can also help ensure that alimony has either been paid or received properly.

3. Filling Your Own Taxes Can Be Time Consuming

Filling Your taxes can be time-consuming. A tax consultant will be able to work quickly and efficiently. They will be able to save you the stress of making sure your taxes are done right.

4. You Work or Live In Different States

Taxes can become confusing if you live and work in different states. If you’ve recently moved to a new state it can be confusing as well.

A tax consultant will be able to assist you in the different states’ tax rules and can help you sort out any issues that arise.

5. You’ve Started A Business

A common mistake of new business owners is waiting to hire a tax professional. How you file your taxes the first year can impact future tax filings. It is important to start off right.

David Mills Can Assist You With Taxes

David Mills is proud to assist our customers with their taxes and make recommendations that fit your needs. Check out our Income Tax Planning service HERE. If you need assistance with your taxes, contact David Mills today. We look forward to working with you!

 

 

Section 199A Deduction Explained

Section 199A Deduction

If you own a business, you have probably heard about the Section 199A Deduction. This is also known as a Qualified Business Income Deduction. You may wonder what exactly this is and how does it work? David Mills CPA has put together information in order to help you better understand the 199A Deduction.

What Does The 199A Deduction Do?

The 199A Deduction reduces taxable income, but not adjusted gross income. This deduction does not lower Illinois taxable income or does not lower self-employment tax.

Who Is This Deduction Available For? 199A Deduction

The 199A Deduction is available to sole proprietors, partners, and S corporation shareholders. It is not available to C corporations.

How Is It Calculated?

The calculation for the 199A Deduction can be complex. It is partly dependent on the taxpayer’s total taxable income. There are no limits for married filing jointly taxpayers with $315,000 or less of taxable income. There are typically no limits on the deduction regardless of whether the business is a specified service trade or business.  199A Deduction

The deduction is the lesser of the Qualified Business Income or 20 percent of taxable income minus long-term capital gains.

What Are The Limits?

Limits exist for married filing joint taxpayers with taxable incomes between $315,000 and $415,000. A limit begins to phase in based on wages and/or qualified property acquisitions.

If you earn an income above $415,000, limits are determined based on W-2 wages and qualified property acquisitions. This deduction is not available to the taxpayer under certain circumstances.

David Mills CPA Is Here To Help!

If you are looking for more information or need help with your 199A Deduction, contact David Mills CPA today. Our team of experts will be happy to assist you with all of your financial needs. David Mills offers financial and accounting services to small and medium-sized businesses, as well as individuals in Peoria, IL as well as the surrounding areas. We look forward to hearing from you!