Tax Planning
Adjusted Gross Income (AGI)
For United States individual income tax, adjusted gross income (AGI) is total gross income minus specific reductions.[1] Taxable income is adjusted gross income minus allowances for personal exemptions and itemized deductions. For most individual tax purposes, AGI is more relevant than gross income. Source: Wikipedia These deductions reduce AGI. Amounts deductible against gross income in…
Read MoreSchedule A – Itemized Deductions
If the total of a taxpayers itemized deductions is greater than standard deduction for the applicable filing status, Schedule A should be used. Here is a summary of deductions which are itemized on Schedule A Medical and Dental Expenses Taxes Paid Interest Paid Investment Interest Expense Interest – Mortgages Points – Mortgages Other Mortgage Interest…
Read MoreTax credits that may affect your return
Additional Child Tax Credit Adoption Credit Alternative Motor Vehicle Child and Dependent Care Credit Child Tax Credit Earned Income Credit Education Tax Credit – American Opportunity Education Tax Credit – Lifetime Learning Elderly or Disabled Federal Tax Paid on Fuels First-Time Home Buyer Credit Foreign Tax Credit General Business Tax Credits Health Coverage Tax Credit…
Read MoreIRAs and Retirement Accounts
Taxpayers who make contributions to a retirement plan may reduce their tax liability and earn increased benefits when it is time to retire. RTR Accounting, Payroll & Tax Services is ready to help you with: Traditional IRAs Roth IRAs SIMPLE IRA Plans SEP Plans 401(k) and 403 (b) Plans Other Qualified Plans Distributions Rollovers Beneficiaries…
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