5 Tips for Better Tax Planning in Florida
Over the last couple years, Americans have seen major tax changes with newly added exemptions and deductions due to the ongoing COVID-19 pandemic. Therefore, it is more important than ever to begin tax planning and preparations early and avoid any further complications.
As federal lawmakers continue to debate potential tax changes for the new year, it is important for all taxpayers to keep an eye on critical developments. However, there are still many steps that taxpayers can take to ensure that they are best prepared for the season. Read to discover 5 tips for better tax planning in Florida.
Brief Overview of Florida Taxes
For starters, it is important to understand how Florida taxes differ from other state’s taxes. For many years, Florida has had one of the lowest tax burdens in America. Major taxes collected in Florida include sales and use tax, and corporate income taxes – there is no personal income tax in the state of Florida.
|1. Gather and organize your tax records
Taking the time to organize all of your tax records and documents that you will need to file returns makes the process much easier. This essential preparation step can help individuals avoid making errors or omissions that will cause complications or delay returns. A few examples of documents that taxpayers should have on hand include records of all income received, social security details, a copy of last year’s tax return, and tax deduction documents.
2. Conduct an estimate of what your tax owed / refund will look like
Oftentimes, there are many people who do not know what to expect when it comes to filing their tax returns. The approaching tax season may have people wondering if they will be receiving money or owing money. This is why it is smart for individuals to do an early estimate and get a better understanding of what to expect when taxes are submitted so that it makes it easier to plan accordingly.
While there are a number of estimating calculators and resources that can be found on the internet, the best way to get the most accurate estimate of your tax bill or refund will be through a professional CPA firm. Once you find the best CPA firm in your area, you will have the opportunity to work with certified tax experts who have the knowledge and expertise to provide conclusive estimates.
3. Remain up to date with tax legislations
Tax laws and regulations are constantly changing, and the complexity of tax laws can be overwhelming for many. However, it is extremely important for businesses and individuals to stay informed of these changes in order to file their taxes correctly and on time. The best way to stay updated with the latest and most accurate tax legislation news is to visit IRS.gov or contact a local CPA firm in Florida.
4. Be aware of tax scams and fraud
It is not uncommon for people to begin receiving phone calls, emails and text messages around tax season from senders who are claiming to be the IRS. It is important to remember that U.S. mail is the only way that the IRS will communicate with you, and that any other form of attempted communication is a scam.
5. Contact a professional CPA firm for assistance
Outsourcing during tax season offers a number of desirable benefits for both individuals and businesses. The best CPA firms will have a vast pool of CPA and accounting specialists who carry years of experience in preparing financial documents and filing tax returns to ensure that your taxes are done accurately and free from errors. Furthermore, with the help of experienced tax professionals, you can remain assured that all of your financial documents and tax records are completed efficiently and on time.
Choose Brock CPA: The Best CPA Firm in Jacksonville
At Brock CPA, you can rely on leading expertise and guidance from the most knowledgeable tax professionals in Jacksonville, Florida. Our tax experts are always up to date with the ever-changing tax laws and will work with you to analyze changes in your business and personal situation to see how tax law changes may impact you. If you need assistance with tax planning and preparation for the new year, we encourage you to contact our office today.