Don’t miss credits and deductions that could help you save more money!
|Less of Your Time||No|
|Expert Advice from a CPA or EA||No|
|Less Audit Risk||No|
|Less Out of Pocket||No|
Rest easy. Changes to the tax law won’t go into effect until the 2019 tax season. But, it’s never too early to start talking to an expert about how the upcoming changes will affect your tax situation next year so you can get ahead of the game.
A tax credit reduces the amount you owe to the government, dollar for dollar. For example, if you owe the IRS $1,500 but qualify for a $1,000 child tax credit, the total amount you owe would be $500.
A tax deduction reduces your taxable income. For example, if you are taxed at the 25% tax bracket and you take the standard deduction of $6,350 for a single taxpayer, that deduction will reduce the amount owed by $1,575.
The two main types of tax deductions offered are the standard deduction ($12,700 for married filing jointly and $6,350 for a single taxpayer—both are nearly doubling for the 2019 tax season) and itemized deductions like charitable donations and medical expenses. You should take the standard deduction unless itemizing your deductions adds up to more than the standard deduction.
A tax exemption is money you can deduct from your taxable income for yourself and qualifying dependents.
A CPA is a Certified Public Accountant licensed by their state.
An EA is an Enrolled Agent. EAs are nationally licensed tax specialists who can also represent you in the event of a tax audit.
*Survey of 2,000 Facebook users. Tax software performance varies by individual tax returns.