Top 5 Ways to Maximize Your Tax Benefits

Paying tax is an inevitable part of your adult life. Barry W James of BW James CPA’s shares some tips on how you can maximize your benefits and at the same time, minimize your taxes due. Here are some useful suggestions you can use for the tax season.

Make necessary adjustments for your withholding.

There are plenty of Americans with withheld taxes higher than what is required of them. If you are receiving a large refund, it is due time to review your withholding so you get of that money in your own paycheck.

Keep your records organized.

Make sure you have all the tax related documents prepared and organized. This simple tip can save you a lot of time and possibly help you further with minimizing your taxes.

Make contributions to your retirement accounts.

Your additional deductions can be increased by funding your retirement plan. One way to do this is to use a Traditional IRA. Your contribution becomes a deductible if you are an active participant or if your spouse is.

Sign up for a Flexible Spending Account.

According to BW James accountants, a Flexible Spending Account may be beneficial to your case, which is why it is worth considering. With this program, funds are deducted from your salary on a pretax basis. That automatically reduces your taxable income. The funds taken from your paycheck will then be refunded as soon as you present claim forms to your company's benefits department. The two kinds of FSAs worth considering include healthcare and dependent care.

Support a charity.

Making a charitable donation can also help minimize your taxes. And when you do, make sure you itemize these deductions properly so you can receive tax related benefits that is due you. Keep in mind however, that only the actual contributions are considered deductible. Check the guidelines regarding this matter for more information.

For more information about the professionals at BW James call 281-420-1040 or visit http://www.bwjames.com 

Year End Money Saving Tips

It is now October and 2013 is almost completely over, and now it is time to start doing some year-end planning to save money during the rapidly approaching tax season.  Courtesy of the professionals at BW James, here are a few tips to be better prepared.

Get Organized

Gathering your tax data as soon as possible can save you a lot of trouble and put you in a better position to save money during tax time.  Round up all receipts and canceled checks, check brokerage statements for year-to-date gains or losses and make a checklist of accounts to keep track of the 1099s.  Organizing your files now will avoid some of the stress that would be there later.

Fund Your Retirement

There’s a bounty of ways to benefit on your taxes when funding an IRA.  The professionals at BW James can advise you on which way is best for you.  Perhaps it’s time convert that traditional IRA to a Roth IRA.  Be sure to talk to us about your retirement options.

Pay Off Deductible Expenses

Paying your state income tax estimate before December 31 can accelerate your federal deduction.  You can also pay property taxes early, make an extra mortgage payment, or opt to have dental work or deductible elective surgery you planned on having before the year-end.

Give to Charity

Do you donate to charities each year?  Doing so before December 31st will allow you to deduct the amount from your taxes sooner.  Be sure to work with BW James to coordinate the best time possible for charitable gifts to ensure you’re benefitted on your taxes.

Properly preparing for tax season at the end of the year can put yourself in great position for the April deadline.  These are just a few ways you can explore to get ready.

For more information about Barry W James and the professionals at BW James visit http://www.bwjames.com