Tag Archives: Tax

Mar
31
2023

Reducing Taxes On Social Security – Advantages And Disadvantages Of This Debatable Issue

The Social Security Act of 1935 is among the primary acts the United States government is imposing. The acts main function is to give a lifetime reward to workers who have retired by the age of 65. That was the time of the Midst of Depression and where programs regarding social security were then based on. Due to the expansion of these programs, the programs are considered to be a leading federal program. The funds for these programs demand almost a quarter of the funds in the federal.

For in a long time now, the payments given by the social security programs were free of tax. This was the setup since for the most part of the grantees life, the grantees were paying for their social security record.

In this case, change has always been a part of our life. Just like for programs in Social Security, it has changed over the years and are still subject to change. Presently, a part of the payments given by the programs is taxable. There was one period where the benefits were almost taxed by 50% and other brackets even reached 85% taxable rate. Various measures were tried and employed in reducing the tax rates of the payments, however majority of them were futile. Due to the changes, it won’t be a surprise if there would come a year where people would pay the benefits of their social security at a very high rate. This could be partly attributed to increasing population. One important setback that is situation reflects is that because of the increasing population, some time in the future many people would become dependent on the social security programs especially the benefits when the time for their retirements comes. The setback could probably be best solved if the tax rates could be lessened by the government. In this way, there’s a higher probability that people would gain more income.

Another possible solution that could be taken as of the moment is to increase the rates of the taxes imposed on present employees. This way could somehow ensure that while there is an increasing population, the entire system would not necessarily fall apart. Presently, employees pay taxes after earning $90,000 firstly. The employees are still taxed similarly, since in this way the government is able to increase the cap rather than having the employees pay a higher percentage. In this way, the burden in placed on the higher bracket employees rather than those middle class ones.

One concern arising presently is that the social security and its benefits are now put at risk. There are retirees now enjoying benefits that people in the future would not be able to perhaps enjoy. Currently, it is determined that employees now would be getting 25% less of the benefits that retirees are enjoying presently. However retired grantees are also on the lookout to make sure that even with the booming population, taxes would be reduced so that we could avoid having people living underneath the poverty line.

Those who are currently working and paying for their benefits could be assured that in the long run they would be able to enjoy the benefits they are saving for now with additional savings for that matter. The present situation demands that the government find ways to reduce the taxes so as to avoid the conflict that the benefits enjoyed by the retirees presently would not be the same as to the retirees in the future. The changes could happen given that bad case social security programs are now encountering, it would perhaps be possible for the government to eventually lessen the taxes on these benefits and programs.

Sep
03
2022

Tax Attorney Versus CPA: Who’s Right to Handle Your Taxes This Year?

A tax attorney and a certified public accountant are both trained to help you during tax season. However, they differ in key ways that might affect who you choose to hire.

If you’re seeking help with your tax return preparation this year, or if you need tax resolution services, you might be wondering who to hire. Certified public accountants, tax attorneys, and paid tax preparers will all be vying for your business. To make an educated decision, take into account the specific training of CPAs versus tax attorneys, as well as what kind of assistance you actually need.

Tax Return Preparation

Most accounting firms include tax preparation services in their larger bill of offerings. When you visit a CPA, he can go through your financial files and complete the tax return with you and then sign off on it as a paid preparer. If there are any issues with the return, the CPA will act as your advocate with the IRS. Some tax attorneys also prepare tax returns-but not all will, as they tend to devote their time to more complex legal matters. Additionally, if you hire a tax attorney to prepare your return, it may end up being much more expensive than hiring a CPA or even a paid tax preparer.

Legal Advice and Representation

Tax attorneys are lawyers who specialize in tax law. That means they have completed law school and are able to represent you in court, should you need it. They also have detailed knowledge of the complex tax codes and can guide you through negotiations with the IRS. An accountant, on the other hand, usually has a degree in finance or accounting and has been licensed as a CPA by the state, after passing the certification exam. While an accountant may have a thorough knowledge of tax laws, he cannot represent you in legal matters. Additionally, only with a tax attorney will you have the benefit of attorney-client privilege, meaning that anything you discuss with your lawyer will be confidential.

Tax Resolution Services

If you’re struggling with back taxes, you can hire either a CPA or a tax attorney to deal with the IRS on your behalf. Even though an accountant is trained in financial matters and an attorney is trained in the law, both can specialize in tax resolution and thus can negotiate the appropriate tax resolution scenario. If you’re being subjected to an audit, an accountant may be the right person to go over your financial records with a fine-toothed comb, but you may prefer a tax attorney to speak to the IRS. Consider what kind of help you need and move forward from there.

Money Management Advice

A CPA is there for you year-round, not just during tax season. He can help you budget for next year’s taxes, or for upcoming expenses or desired purchases. An accountant in your area may also be able to advise you regarding investments and expenditures, as well as overall financial trends. While a tax attorney may be able to do this, again the services of a lawyer will cost much more than the services of an accountant.

The lines between the various tax experts continue to blur. You may find an accounting firm that specializes in tax law, or a tax lawyer who advises clients on money matters unrelated to taxes. The most important thing is to do your research before making a decision. The right tax specialist can make tax season stress free.

Jul
03
2022

Tax Attorney Versus CPA: Who’s Right to Handle Your Taxes This Year?

A tax attorney and a certified public accountant are both trained to help you during tax season. However, they differ in key ways that might affect who you choose to hire.

If you’re seeking help with your tax return preparation this year, or if you need tax resolution services, you might be wondering who to hire. Certified public accountants, tax attorneys, and paid tax preparers will all be vying for your business. To make an educated decision, take into account the specific training of CPAs versus tax attorneys, as well as what kind of assistance you actually need.

Tax Return Preparation

Most accounting firms include tax preparation services in their larger bill of offerings. When you visit a CPA, he can go through your financial files and complete the tax return with you and then sign off on it as a paid preparer. If there are any issues with the return, the CPA will act as your advocate with the IRS. Some tax attorneys also prepare tax returns-but not all will, as they tend to devote their time to more complex legal matters. Additionally, if you hire a tax attorney to prepare your return, it may end up being much more expensive than hiring a CPA or even a paid tax preparer.

Legal Advice and Representation

Tax attorneys are lawyers who specialize in tax law. That means they have completed law school and are able to represent you in court, should you need it. They also have detailed knowledge of the complex tax codes and can guide you through negotiations with the IRS. An accountant, on the other hand, usually has a degree in finance or accounting and has been licensed as a CPA by the state, after passing the certification exam. While an accountant may have a thorough knowledge of tax laws, he cannot represent you in legal matters. Additionally, only with a tax attorney will you have the benefit of attorney-client privilege, meaning that anything you discuss with your lawyer will be confidential.

Tax Resolution Services

If you’re struggling with back taxes, you can hire either a CPA or a tax attorney to deal with the IRS on your behalf. Even though an accountant is trained in financial matters and an attorney is trained in the law, both can specialize in tax resolution and thus can negotiate the appropriate tax resolution scenario. If you’re being subjected to an audit, an accountant may be the right person to go over your financial records with a fine-toothed comb, but you may prefer a tax attorney to speak to the IRS. Consider what kind of help you need and move forward from there.

Money Management Advice

A CPA is there for you year-round, not just during tax season. He can help you budget for next year’s taxes, or for upcoming expenses or desired purchases. An accountant in your area may also be able to advise you regarding investments and expenditures, as well as overall financial trends. While a tax attorney may be able to do this, again the services of a lawyer will cost much more than the services of an accountant.

The lines between the various tax experts continue to blur. You may find an accounting firm that specializes in tax law, or a tax lawyer who advises clients on money matters unrelated to taxes. The most important thing is to do your research before making a decision. The right tax specialist can make tax season stress free.