Issue link: https://www.ascpskindeepdigital.com/i/430862
Create your free business website! www.ascpskincare.com 37 H&R Block offers a discount to ASCP members. Log in to the member section at www.ascpskincare.com and look for Member Discounts in the "Business Tools" menu. If you just drop off a box of receipts to your tax preparer, you are probably overpaying your tax. Note: The information provided here does not constitute accounting, financial, legal, or tax advice, and is offered as an informational service only. Those seeking specific advice should contact a professional advisor. No liability whatsoever is assumed in connection with the use of this information. a $12,400 married/$6,200 single write-off without itemizing. Here, however, are a few itemized deductions you may want to consider: • If you have a high-deductible health insurance plan, consider a Health Savings Account (HSA). You put money into this account to pay medical expenses, but you also receive a tax deduction for the money you put in. It's a way to get back some of your out-of-pocket costs on your medical bills. • Look into which of your retirement contributions are deductible. If your employer has a retirement plan in which they match a portion of your contribution, make sure you contribute at least enough to receive the matching funds. For other retirement savings, consider a traditional or Roth IRA. • If you are still paying off a student loan, the interest on this loan may be deductible. • If you have medical expenses that exceed 10 percent of your adjusted gross income, anything over that limit is deductible. Keep an eye on your medical expenses throughout the year, and if you're getting close to the 10 percent minimum, it can be worthwhile to spend money on elective medical expenses, like dental checkups, in the same year to boost you over that line and get a write-off. • The same is somewhat true of your employee business expenses. These are also deductible, but only the amount that exceeds 2 percent of your adjusted gross income. Knowledge is Power By knowing and understanding important tax laws and regulations, you can avoid some potentially huge mistakes that could cost you significant amounts of money. One of the best ways to prevent these kinds of mistakes is to seek professional tax planning help. You don't expect clients to do their own facials at home and still get professional results. They come to you because you are an expert. Likewise, you need to find someone who is more than just a tax preparer—you need to develop a business relationship with someone who can be a tax planner beyond simply preparing tax returns. Set up a meeting to discuss your situation and find out what you can do to minimize the tax you pay. Look for someone who knows your industry, or at least someone who knows small businesses. Tax- planning professionals have a wealth of knowledge and experience in tax planning, accounting, and consulting that will not only save you money once a year, but will also help you understand your numbers and keep more of your hard-earned money in your pocket. Larry Kopsa, CPA, is a certified public accountant and former salon owner who is now a partner of Kopsa Otte, the only CPA firm that specializes in salons and spas. He works with clients across the country, speaks at events worldwide, has written numerous articles, and has worked with Milady to develop financial tools for salon and spa owners. Visit www.kopsaotte.com for more information.