Tax Tips for 2020

Tax deductions and tax credits can be huge money-savers — if you know what they are, how they work and how to pursue them.

Bullard & Associates can handle the most complex returns with ease (and allow you to file your taxes electronically for a faster refund). You just need to answer simple questions, such as whether you’ve had a baby, bought a home or had some other life-changing event in the past year. Bullard & Associates will then fill out all the right forms for you.

If you are concerned about preparing your own return, our firm offers some additional services that you can purchase when preparing your return that will give you added confidence and peace of mind. For example, you can talk to a tax professional to get your questions answered, so that you are professionally represented in the event of an audit.

  • In the past, if you used 10% of your home for a home office, for example, 10% of the profit when you sold did not qualify as tax-free under the rules that let homeowners treat up to $250,000 of profit as tax-free income ($500,000 for married couples filing joint returns).
  • You are entitled to write off expenses that are associated with the portion of your home where you exclusively conduct business (such as rent, utilities, insurance and housekeeping). The percentage of these costs that is deductible is based on the square footage of the office to the total area of the house.
  • Itemizing is worth it when your qualified expenses add up to more than the 2019 standard deduction of $12,200 for singles and $24,400 for married couples filing jointly.

If you think your tax bill is chiseled in stone at the end of the year, think again. Though it’s true that most money-saving options to defer income or accelerate deductions become much more limited after December 31, there is still a lot you can do to make the tax-filing season cheaper and easier. Bullard & Associates’ tax tips for the new year can help you lower your taxes, save money when preparing your tax return, and avoid tax penalties.

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