Individual & Estate Tax Needs
Every year, federal income tax laws are becoming increasingly complex. Over the past few years, numerous new tax laws impacting new homebuyers, college tuition credits, health insurance, net investment income tax, additional Medicare tax, and many, many more.
Of course, Congress passes new tax laws each year. Some new laws may impact you for only one or two years. Even worse, such laws may expire only to be reinstated at the end of the year. Add to that, the Affordable Care Act which is now in full swing as well, so personal income taxes have never been more complicated to understand.
Additionally, based on the latest IRS statistics (2011), the average amount individuals pay to the IRS in taxes was $11,402. Taxpayers, with incomes of $50,000 or higher, paid taxes of $19,903. And for those lucky to have incomes of $100,000 or higher, your taxes, on average, were $40,342. Of course, it only gets worse as your income rises.
Finally, consider that very few people, if any, realize that when they file a tax return every year, they are stating under a legal oath that "This is the amount of taxes I should pay for this tax year". In effect, as a taxpayer, you are obligating yourself to a debt to the US Government for tens of thousands of dollars.... Every year!
Wouldn't it be wise to have a qualified tax professional assist you each year to make sure you only owe what you should? Let an Enrolled Agent specifically trained in taxation assist you with ALL complex tax issues, such as:
1) Helping you plan your personal income taxes throughout the year. Did you know income taxes for commission, bonus, and stock options are withheld at a flat 25%? The standard withholding for retirement income is usually 20%, unless you instruct otherwise. Even worse is that interest, dividend, and capital gain income typically have no income tax withholding. Add to the complexity, that every year there are new tax laws which are passed and/or old ones that are reinstated, both will impact the amount of taxes you need to pay for the year.
Working with an Enrolled Agent, who is up-to-date on tax laws each year, help you proactively plan and estimate your annual income taxes so you won't be surprised with a tax bill come next spring.
2) Get your income tax return filed. Many life events have enough complexity without having to bring taxes into the discussion. Changing jobs, working through divorce, adopting a child, selling a house, caring for a sick relative, and many others, have significant tax implications. An Enrolled Agent can prepare your tax return to minimize any tax issues.
3) Help you prepare and file complex trust and estate income and other tax returns. Are you the executor of an estate or trustee of a trust? Estate and trust returns are extremely complex and have unique tax rules and forms to follow. In many cases, the income from these entities will impact other individual tax returns. Something as simple as income owed to the deceased but paid after his or her passing can create extremely complex tax issues. Working with an Enrolled Agent professionally trained in trust and estate tax law will help simplify much of the tax complexity and avoid any unnecessary taxes.