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Achieving Tax Success: An Insider’s Perspective
Filing personal taxes can be daunting even in the best of times. At DeFreitas & Minsky LLP, a certified public accountant firm based in New York, we understand the complexities individual taxpayers face. We have structured our strategic advisory and tax preparation services to ensure achieving tax success. However, for the benefit of our esteemed readers, we delve deeper into this topic, ensuring that we cover aspects largely unexplored by most tax-related blogs.
Understanding Unique Tax Challenges
As an individual taxpayer, you might wonder what makes tax preparations so complicated. To offer some perspective, the Internal Revenue Service (IRS) made about 579 changes to the code in 2020 alone (Source: Wolters Kluwer, CCH). This frequent term revision creates a labyrinth that one needs expert guidance to navigate.
However, that’s not all; let’s highlight some key challenges:
– Intricacies of income reporting due to diversification,
– Understanding and claiming the right deductions and credits,
– Tax implications of investment decisions,
– Rapid tax law changes and understanding their impact.
Our team at DeFreitas & Minsky LLP keeps abreast of these challenges and works diligently to ensure our clients’ tax success.
Adapting a Proactive Approach for Success
ACHIEVING TAX SUCCESS is not about number crunching alone – it’s about foresight, strategic planning, and detailed understanding. As your tax partners, we firmly advocate a proactive approach, and here’s why.
According to U.S. government data, nearly 1 in 5 taxpayers miss out on valuable tax deductions each year, largely due to inadequate planning and laxity in understanding tax terms (Source: IRS). A proactive approach can prevent such losses, ensuring you don’t leave any money on the table.
Finding Strategic Tax Solutions
Coming to strategic tax solutions, let’s explore this with real-world data. The IRS reported that in 2019, taxpayers paid an average of 14.6 percent in income taxes. However, efficient tax planning can significantly reduce your liability.
For instance, consider a case where you earn a substantial amount through investment income. U.S. taxpayers can apply for the 0%, 15%, or 20% long-term capital gains rate, instead of the normal income tax rates that can go as high as 37%. This is just one of the many strategic solutions aimed at reducing your tax burden.
Capitalizing on Credits and Deductions
Credits and deductions play a key role in one’s tax success story. According to reports, about 44.5 million (or 30.5 percent) of U.S. taxpayers utilized the standard deduction in 2018 (Source: IRS). But could you potentially save more by itemizing your deductions? At DeFreitas & Minsky LLP, we delve into these details, helping our clients make informed decisions.
Maximizing Efficiency through Tax Software
The advent of technology has given us advanced tax software that eases the task of tax preparations. A recent survey showed that nearly 41.5% of U.S. individuals self-prepare their taxes using software (Source: Statista). This is where we come in as tax advisors, guiding our clients through the process to maximize the software’s efficiency and minimize errors.
Tracking Tax-adjusted Portfolio Performance
Effective tax management is crucial to protect your portfolio’s returns. According to a 2019 study by Morningstar, investors lost 1% to 2% of their returns annually to taxes (Source: Morningstar). By tracking your tax-adjusted portfolio performance, we aid in achieving higher post-tax returns, ensuring tax success.
Achieving Tax Success: The Way Forward
Tax success signifies meticulous planning, strategic insights, and mindful decisions. This understanding has been the driving force for us at DeFreitas & Minsky LLP. We ensure that our clients benefit from our experience and proficiency, leading them on a path of tax triumphs.
Ultimately, achieving tax success is about understanding the individual aspects of your financial health and applying the existing tax laws to your advantage. It’s about rising above challenges and transforming them into opportunities for financial growth and freedom. Know that when it comes to your tax concerns, you always have us at DeFreitas & Minsky LLP – your partners in the journey towards achieving tax success.
