2022 - Page 2 of 2 - Georgen Scarborough Associates

4 Ways a CPA Can Maximize Your Tax Refund

08 Mar 2022
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Individual Tax Preparation, tax refund
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Now that tax season has begun, many people are considering whether or not they should hire a Certified Public Accountant (CPA) to help them get more from their tax returns. And with good reason, CPAs can provide valuable assistance during this time. Here are some ways that a CPA can help you to maximize your tax refund:

Claim Your Credits

Tax credits are a dollar-for-dollar reduction of taxes that you owe. Most people who have a moderate to low income may qualify for the Earned Income Tax Credit. There are some requirements that you must meet to be eligible for this credit, and to get it, you must file a tax return (even if you don’t owe taxes.) While this may seem complicated, a CPA will be able to help you claim these credits.

Determine Whether You Qualify for Deductions

It is vital that you don’t miss any tax deductions, as finding only one missed deduction can make a big difference. In fact, if a CPA can find a large enough deduction, it might just be enough to cover their fee. The more deductions they can find, the higher your return will ultimately be.

Help You File Your Income Taxes

A qualified CPA will be able to help you determine the best filing status. Choosing the best filing status for you can significantly impact how much your refund will be. The status you choose will determine your standard deduction, filing requirements, the credits you qualify for as well as your tax refund.

Correct Any Errors.

Having a CPA on hand can help you avoid any mistakes or commit unintentional fraud. Besides this, they can also help you create a budget plan if you have unpaid taxes. This will help you work out a payment plan with the IRS for your taxes to save more money. Ultimately, your CPA will be able to keep track of costs and financial planning so that you don’t have to.

For expert, professional assistance with your 2022 tax returns, contact us at Georgen Scarborough Associates, PC, today.

Get ahead on your 2022 tax filing

08 Feb 2022
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Business Tax Preparation
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The deadline for your 2022 tax filing is only a few months away. You may think that’s plenty of time, but it is always better to start early, be prepared. It’s even better to file early if you can. Here are a few pro tips to help you avoid the last-minute stresses of tax season.

Tips to stay ahead on your tax return in 2022

For most people, a frantic, last-minute rush is par for the course when it comes to filing their tax returns. However, there really is no need to manage your taxes in this way. By taking a few simple steps early in the season, you can ensure that your taxes are wrapped up efficiently, accurately, and without stress. Here are four simple steps to help you stay ahead.

Organize your records: The best way to avoid last-minute stress is to ensure that all your tax documents are collected, collated, and filed at all times. This includes pay stubs, receipts, etc. Don’t leave paperwork at the bottom of a desk drawer. Nor should you save your electronic documents in a haphazard way. This will have you searching for hours through folders and email attachments to get them in order. Organize everything as you go.
Set up an online IRS account: With an online IRS account, you can get immediate access to your tax records without having to reach out by phone or email. Then you can work faster and more accurately as you prepare your taxes.
Check on the annual changes to tax rates and deductions: At the end of each year, the IRS announces rate adjustments. Make sure you stay on top of these so you can file accurately and timely.
Get the help of a CPA: One of the best ways to rid yourself of the stress of filing your taxes is to leave the job to a professional. A certified public accountant knows all the rates and regulations, will be able to guide you through the filing procedure, and will know what it takes to file on time and with the most benefit to you.

As you prepare your taxes for the coming year, reach out to Georgen Scarborough for help. We are a firm of CPAs based in Vienna, Virginia. Contact us if you need help with your 2022 tax filing.

Learn more about current ax laws in the Wall Street Journal’s Tax Guide 2022.

Tax inflation adjustments for 2022

07 Feb 2022
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Business Tax Preparation
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At the end of last year, the IRS announced its latest set of tax inflation adjustments for 2022. It is very important that both individual taxpayers and businesses familiarize themselves with these changes so that they can make the necessary provisions for their tax filing and payments in the coming year. Here is a brief look at the most important adjustments.

Adjusted tax rates for 2022

Among the most important new provisions for the new tax year are the following:

The standard deduction for married couples filing jointly has risen by $800 from $25,100 to $25,900.
The standard deduction for individual taxpayers has risen to $12,950 (up $400)
The maximum Earned Income Credit has also risen. It now stands at $6,935—a $207 rise from the previous year.
As of 2022, the dollar limitation for employee salary reductions for health flexible spending arrangements increases to $2,850.
The foreign earned income exclusion is $112,000, as opposed to $108,700 in 2021.
Deceased estates (for people who pass away during 2022) have a basic exclusion amount of $12,060,000, up from a total of $11,700,000 for estates of decedents who died in 2021.
The annual exclusion for gifts increases to $16,000 for 2022, up from $15,000 for 2021.

It is advisable to get the assistance of an experienced certified public accountant (CPA) to help you manage your taxes in 2022. CPAs always have a complete grasp of the new tax limits, rates and regulations, and will know exactly how to apply them to your income and tax requirements. Georgen Scarborough is a firm of CPAs based in Vienna, Virginia. Contact us if you need help managing the tax inflation adjustments for 2022.

Top 10 Reasons to Hire a Tax Professional

11 Jan 2022
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Business Tax Preparation
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Tax season has officially begun. And, after the past two years, the stress of filing tax returns and gathering documents is one that many people don’t want to deal with. Here are 10 reasons why you should be using the services of a tax professional this year:

Ten Reasons to Use a Tax Professional

Accuracy

The tax code can be complicated. Plus, any errors made when filing your return can be costly; legally and financially. This is why we pay tax professionals. Tax professionals keep you up-to-date with the tax code and have the necessary expertise to ensure accuracy in your tax returns.

Can keep you updated

The tax professional can update you on any IRS tax changes or tax law changes.

You may get a higher return

A tax professional can get you the highest return possible by ensuring you don’t accidentally miss any deductions.

Saves you time

Normally, it takes between 8 and 10 hours to compile a complete tax return. If you have a busy schedule, a tax professional is a great resource to free up this valuable time. Time is money after all.

Expert Advice

Tax professionals can answer any questions you may have and help you make smarter decisions to ensure maximum tax savings and returns.

Saves you money

If your tax preparer finds just one deduction you may have missed, it could easily cover their fee. Not to mention, the more deductions they help you find, the higher your return will be. They can also recommend ways for you to save on your taxes and increase your returns.

Reduced risk of an audit

You lower your risk of an audit when you use tax preparation services. Plus, if you are audited or the IRS starts asking you questions, the preparer will know exactly how to answer the questions and deal with the IRS.

Lowered Stress Levels

You no longer have to worry about filing the return yourself. Sometimes just knowing that you have professional assistance can reduce your stress levels.

Human contact

You get a personal touch from using a tax professional that tax software cannot provide. Plus, no matter how advanced the software is, it cannot represent you in an audit.

Current and future peace of mind

Tax professionals can equip you with the tools and knowledge to ensure that your current and future tax seasons go off without a hitch. They provide you with the best strategies to ensure you make smart tax-saving decisions.

For expert, professional assistance with your 2022 tax returns, contact Georgen Scarborough Associates, PC, today.

How contributing to your retirement can reduce your taxes

04 Jan 2022
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Individual Tax Preparation
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In today’s economic climate, saving to secure your financial future is essential. Contributing to a retirement plan is a tax-efficient, tangible goal that will help ensure that you can live comfortably in your golden years. This blog will cover the tax benefits you can achieve from contributing to a 401(k).

Tax Benefits of a 401(k)

The 401(k) came about somewhat accidentally. Congress passed the Revenue Act of 1978 (in that same year), which included a provision – Section 401(k). This provided employees a tax-free way to defer compensation from bonuses or stock options. Since the law went into effect on 1 January 1980, it has become one of the most common retirement plans in the United States—along with Individual Retirement Accounts (IRAs).

There are two versions of this employer-sponsored retirement plan. Both offer tax benefits. However, each is taxed differently:

The tax-deferred 401(k) – which has several variations
The Roth 401(k) – which was introduced in 2006

If an employee signs up for a 401(k), they agree to have a portion of each paycheck paid into an investment account. The person’s employer can then match the employee’s contribution in part or in full.

The tax-deferred 401(k)

A traditional tax-deferred 401(k) plan has the following key tax benefits:

You could pay less income tax. Because your “pre-tax” dollars make up your contributions, you will be lowering the amount of income you need to pay taxes on.
Contributions and earnings are tax-free until withdrawal. No taxes are due on the monthly contributions or the earnings your savings accrue. You are only taxed when you withdraw the money (usually in retirement)

The Roth 401(k)

A Roth 401(k) has the following key benefits:

No taxes are due when you withdraw. Unlike a traditional 401(k), contributions to a Roth 401(k) are deducted from an employee’s after-tax income. After paying your income taxes, you can deduct your pension. No additional taxes are due on your contributions or earnings when you withdraw the money in your retirement.
Taxpayers have the option of funding both a Roth 401(k) and a tax-deferred 401(k).

With the Saver’s Credit, formally called the Retirement Savings Contributions Credit, your contributions to a qualified 401(k) could lower your tax bill more depending on your income and filing status.

Georgen Scarborough Associates, PC, is an organization of certified public accountants that can provide tax preparation for individuals, families, estates, and trusts. For assistance with your taxes, contact us today at (703) 319-3990 or email us at kathy@gsacpa.com to learn more about what we can do for you.

Yearly Archives: 2022