It is critical for everyone to make sure they know how to do their taxes and how to do them correctly. This means not only following the law but also making sure that they minimize their tax burden. According to Konstantin Lichtenwald of Vancouver, some people might be paying more in taxes than they should. Therefore, there are a few key points that everyone should keep in mind. By following tips from some of the trained accounting professionals, it might be possible for people to save money on their taxes. This means more money to pay their mortgage, more money to pay for school, and more money for retirement.
Konstantin Lichtenwald of Vancouver Discusses the Differences Between Standard Deductions and Itemizing
First, Konstantin Lichtenwald of Vancouver wants everyone to know their options when it comes to deductions. Some people like to take the standard deduction because this makes things easier. Other people might want to itemize their deductions instead because they might save more money. While the standard deduction does simplify things, Konstantin Lichtenwald wants people to know that they might save more money if they itemize. Particularly for people who run their own business or who get paid via 1099, they might be able to save a lot more money by itemizing instead.
Konstantin Lichtenwald of Vancouver Discusses the Differences Between Tax Deductions and Tax Credits
Konstantin Lichtenwald of Vancouver also wants people to know about the difference between a tax deduction and a tax credit. A tax deduction comes off of someone’s gross taxable income. In contrast, a tax credit is something that is applied directly to the amount of money that someone owes in taxes. According to Konstantin Lichtenwald of Vancouver, a tax credit is actually much better than a deduction but is also harder to find. One of the most common sources of tax credits right now is solar energy; however, there is a good chance that this is going to change in the future. Therefore, it is important for everyone to keep up with these changes.
Konstantin Lichtenwald of Vancouver Discusses the Role of Working with a Trained Professional
Finally, Konstantin Lichtenwald of Vancouver also wants everyone to know about the benefits of working with a trained professional. Yes, there are some people who believe they can do their taxes on their own so they should not pay someone else to do their taxes; however, the reality is that the tax law changes on a regular basis and it is hard for the average person to keep up. Therefore, in order for people to save as much money as possible on their taxes, Konstantin Lichtenwald thinks it might be a good idea for some people to hire an accountant. Often, people save more money on their taxes than they pay their accountant.
