It seems like that season rolls right back around before you know it. When it’s time to report state, city, and federal earnings, a wild scramble ensues. Individuals and small businesses alike assemble financial statements in the hopes that they can take full advantage of their applicable taxation benefits. There’s no need to suffer in silence or to miss out on a well-deserved refund. Feel free to contact us today for a comprehensive consultation on tax preparation in Manhattan and surrounding areas. In the meantime, let’s dive into some basic tax rules that you will want to know.
Adjusted Gross Income
Above-the-line deductions including student loan interest payments are also known as adjustments, and can be subtracted from your gross income – lowering taxable earnings. The adjusted gross is lowered further by taking out certain exemptions for yourself, your spouse, and any dependents. Exemptions take it one step further, though these are based a unique expense snapshot. Mortgage payments and charitable donations, below-the-line or itemized deductions fall under this category.
Taking On The Standard
One could instead opt for a standard deduction, which is a flat rate of $8,000 in regards to tax preparation for a Manhattan domicile. Remember that if their fewer deductible expenses, the less you have to itemize. In this situation, taking the standard deduction would be the better option.
The AGI ends up as the eligible taxable income after subtracting deductions, expenses, and a number of tax credits. Robert A. Woloshen CPA, PC is your reliable and professional accounting service nestled in Union Square. To learn more, contact us today at http://www.Website.com/ to get enhanced tax solutions.
