The New Year is upon us and tax season is beginning. While it’s is true that most money-saving options to defer income or accelerate deductions become much more limited after December 31, there are still a few steps that can be taken to lighten your load come April 15th. The experts at ORT Consulting specialize in creating financial strategies that make your life easier when it’s time to prepare your tax return. By employing ORT Consulting and utilizing the knowledge they provide, you can rest assured that you are making the most of your income and keeping more of it.
Contributing to your 2021 retirement accounts can be done until the April 15th filing date. Making a deductible contribution as soon as possible will help lower your tax bill this year. Your contributions to your retirement account will compound tax-deferred. This means that if you put away $5,000 a year, for 20 years, your $100,000 deposit will increase to nearly $250,000 when receiving an annual return of 8%, which is the average return of a traditional IRA.
Organizing your records for tax time has significant benefits. While it will not save you any money on your tax bill, it can have some financial implications. Having receipts and alternative sources of income at your fingertips will help you get your documentation in earlier, saving time and money. Using the right tax forms is also a step in the right direction.
If you are self-employed or live in a high-tax area, itemizing your deductions can save you more money. The 2021 standard deduction for an individual is $12,550 and $25,100 for a married couple, When your qualified expenses exceed these standard deductions, itemizing your deductions is definitely worth the effort.
A home office tax deduction is another tool that should be utilized by the self-employed. Even if you do not have a fixed location for your business, the home office deduction can be claimed if the space is used for administrative activities. Even if you do not use your home office to meet with clients, using that space in a managerial capacity qualifies you for a home office deduction that will usually be worth at least $1,000.
By working with the financial wizards at ORT Consulting, not only can you ensure that you are making the most of your tax opportunities, but they can ensure that you are able to file on time electronically in order to get the largest refund possible, as quickly as possible. For more information, please visit www.ortconsulting.com.