Individual Taxes
Individual income tax is often referred to as “personal income tax” or “individual income tax.” In this kind of tax, wages, salaries, and other forms of payment are all subject to the same rules. As a general rule, the government is responsible for collecting this tax. Because of tax exemptions, deductions, and credits, most persons do not pay taxes on their whole income.
Citizens may take advantage of various tax deductions and credits offered by the Internal Revenue Service to reduce their taxable income. In contrast to tax deductions, tax credits help reduce your taxable income and the tax rate used to calculate your tax by allowing you to get a more significant return of your withholding.
Depending on your situation, you may be eligible to deduct a range of healthcare and investment-related expenses from your taxable income. Example: A person earns $100,000 and is entitled to $20,000 in deductions; the taxable income is lowered to $80,000 in this example ($100,000 – $20,000 = $80,00) because of the deductions. You then pay taxes on the $80,000. Tax credits are offered to reduce taxpayers’ taxable income and tax liability.
When you work with us, we make it easy for you to understand taxes and we do all the heavy lifting. Contact us to discuss your needs.
What we can do for you:
- Individual income tax returns
- Formal tax planning services
- Estimated tax calculations
- Tax projections and year-end planning
- Respond to IRS letters
- State income taxes
- Quarterly estimated tax payments
- Extension forms