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Why Go To The Tax Reduction Network To Do Your Taxes?

Some people stay as far away from doing their own taxes as possible. Others are more than happy to dive into last year’s finances and see where they stand with Uncle Sam. A lot of this depends on a person’s overall tax knowledge and comfort level with numbers. Let’s take a look at some of the advantages of getting an Enrolled Agent to do your taxes for you.

You Get to Work With a Human Being (Can You Get Personal Tax Advice From A Computer?)

While certain software can be very helpful, it doesn’t speak English as well as a flesh-and-blood human being can. By working with an Enrolled Agent, you can ask questions and deal with problems as they arise. But deep down, don’t you wonder whether a human accountant could find more deductions that a computer program? Over time, you might actually learn to trust the people helping you out with your taxes. Then you and your Enrolled Agent will be able to come up with some new and clever ways of saving money on your taxes—ways you would have never come up with on your own.

Access to the Correct (and Better) Tools and Tax Knowledge (Tax Reduction Strategies Are More Critical Than Ever Since The Advent of The Affordable Care Act)

Enrolled Agents, as a general rule, work with much more sophisticated tax software than an amateur tax preparer has access to at home. This means less chance of error, which can be a major benefit in the long run. Also, an Enrolled agent will almost certainly be better educated in the tax field than you are. This fact should ensure that you find the most savings possible and that you don’t get caught up in any costly tax mistakes and missed opportunities.

Save Time and Money

There’s a lot of fine print and complicated tax code to sort through come tax time. By working with an Enrolled Agent, you can navigate the ins and outs of tax law with more ease and, possibly, save money. In addition, an Enrolled Agent can assist you in charting out financial strategies and investments in advance. By thinking ahead, you’ll likely save time and money now, and year after year. If you do your taxes alone, you just might miss out some opportunities to keep your hard-earned cash in bank account, which, when all is said and done, is the goal at the end of every working day for just about everyone.

By |2015-01-30T13:52:11-04:00January 30th, 2015|
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Will Your Accountant or Tax Advisor Be Discussing Tax Reduction Strategies With You This Tax Season? If Not! Maybe You Have The Wrong Accountant Or Tax Advisor!

At my firm The Tax Reduction Network, tax season has begun with a flood of new business clients and individuals, all looking to reduce their income taxes. This is the result of the huge success of our two minute tax reduction video newsletter, And referrals from existing business owners and individuals who see the benefits of tax planning and reducing their income taxes to the lowest legal minimum!
When these new clients stream into our office, to my surprise, I find they are used to just dropping off their Information and being told they will receive a call when it’s ready!

In our initial meeting I review the clients previous returns, where I normally find a substantial number of mistakes and missed opportunities that were costing these new clients a small fortune in overpaid income taxes, year after year after year. They truly need personal tax advice.
With new business clients I find their schedule c or corporate returns were never explained to them in detail. They had no idea what they could deduct as a business expense. I normally hear, “this was never explained to me,” I was not aware I could deduct that”. I ask them how they have been with their present accountant or tax advisor. The Response 10 years 15 years! When they see how much less they should have paid, their jaw simply drops!!!

One client said “the savings you showed me I could have paid for my two children’s college educations and had enough left over to buy a new truck!” “I had no idea there were so many ways to reduce your taxes.” This could have all been avoided simply by spending 30 -45 minutes and explaining what needed to be addressed to reduce their taxes to the lowest legal minimum. Don’t you think you deserve better?

Does this sound familiar? The Tax Reduction Network can help you stop the stress and anxiety at tax time. So call us now at 610-945-1954 to set an appointment, are schedule is filling up fast. Or email me at dmwttrn@gmail.com. Sign up for our free two minute tax reduction video, at www.thetaxreductionnetwork.com As a bonus you will receive, Ten Tax Reduction Mistakes Business Owners Make, Ten Tax Reduction Mistakes Individuals Make, and The Tax Benefits of Home Ownership!

Remember, The choice is yours. Keep getting soaked with higher and higher income taxes year after year, or learn how to reduce your taxes to the lowest legal minimum!!!

By |2015-01-23T15:08:47-04:00January 23rd, 2015|
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Are Your Frustrated With The Amount of Income Taxes You Pay Each Year? Do You Need a Better Way To Reduce Your Taxes? Are You Even Aware of Legal Tax Reduction Strategies?

Philadelphia, Pa.- Robert was just plain angry. “I can’t believe I’m getting nailed this bad. I seem to be supporting the 17 trillion dollar national debt all by myself!” Once again, he had to write a big check with his tax return. Once again he had been told by his accountant that, “There is nothing you can do about it. Somehow Robert knew his accountant was working for the IRS. “He must be. Why else would he be so satisfied to roll-over and play dead for the government.” “I need personal tax advice”, he thought to himself “My accountant has never mentioned any tax reduction strategies that I could use!”

As Robert finished writing his check to the IRS, he was staring at his laptop and was reading a news feed when he saw the headline, “State of the Union Address Declares Tax War on Business Owners and Individuals! President Obama Prepares New Income Tax Package To Send To Congress! Business-Owners and Individuals Are in Washington’s Crosshairs!”

Robert’s blood pressure spiked! The article ended by saying while new taxes were inevitable, there were just as many new tax reduction strategies in the proposed legislation. And that most small businesses & individuals never use even a small percentage of the secrets the IRS preferred people didn’t know. “If business-owners and individuals knew how many ways there are to reduce your taxes, they wouldn’t be complaining so loudly!”, the article ended.

Robert had enough. “I’m going to learn how to fight back legally!” He knew that starting tomorrow, he was going to stop complaining and take action. He was going to learn, “The Top Ten Tax Mistakes Individuals and Business-Owners Make”, by getting a free report at www.thetaxreductionnetwork.com. You too, should learn all the tax reduction strategies that are available that your current accountant or tax advisor is not telling you about, and congress hopes you never learn!

PS: www.thetaxreductionnetwork.com has just made available a new report titled: Tax Benefits of Home Ownership! Its free when you sign up for the 2 minute tax reduction video newsletter.

By |2015-01-23T13:58:50-04:00January 23rd, 2015|
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2015 Tax Outlook: More Gridlock & Partisanship

2015 Tax Outlook: More Gridlock & Partisanship
( tax reduction strategies will be even more critical to reduce your income taxes)
You may remember that 2013 was a big year for taxes. Congress passed legislation averting the so-called “fiscal cliff,” and many of the “Obamacare” changes took effect. While few of us who watched the process would consider it Washington’s finest hour, we at least had answers to many of the questions that had made proactive planning more difficult over the past few years.

What a difference a year makes! 2014 started off with partisan bickering, and ended with even more gridlock. It took Congress until December 16 to pass “tax extender” legislation, reinstating tax breaks that expired all the way back on January 1. (Those same provisions expire on January 1, 2015 — meaning Congress will have to do it all over again next year!) About the only thing they could actually agree on was cutting the IRS budget back to pre-2009 levels, which will only make the taxation bureaucracy even harder to navigate. Let’s not mention the complexity of the “Affordable Care Act”, and the “Individual Mandate” coming to a neighborhood near you!

President Obama and Congressional leaders have said that corporate tax reform is “on the table” for the final two years of the current administration. However, amid the continuing partisan wrangling over the budget, and the approaching 2016 election, there appears to be little appetite on Capitol Hill for significant changes to the personal tax rules. So up to date personal tax advice is critical

Ordinarily, we would take this occasion to walk you through the upcoming year’s most promising new opportunities to manage your tax bill. This year, thanks to gridlock and Washington’s propensity to make a crisis out of everything, there just isn’t enough “new” to discuss. But we’ll be sure to keep you informed of any legislative changes that do make it out of Washington, as well as new regulations or court decisions that could create tax savings.

At the same time, we ask that you sign up for our Two Minute Tax Reduction Strategies Video Newsletter to keep you informed of changes that might affect your taxes. As a bonus you will receive two free reports. Ten Tax Reduction Mistakes Business Owners Make and Ten Tax Reduction Mistakes Individuals make.

We’re working hard to help you pay less, even if Washington isn’t! So if you have questions, don’t be afraid to give us a call. Stay tuned for our income tax preparation special offer coming soon. Call me today at 610-945-1954 for your free Tax Reduction Strategies Analysis. We’ll find the mistakes and missed opportunities that may be costing you thousands today, and show you how “New Years” tax planning can save thousands more tomorrow.

David M. Warrick, CFP EA
“admitted to practice before the IRS”

By |2014-12-29T09:41:56-04:00December 26th, 2014|
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This Year, Put the IRS (and tax reduction strategies) in Your New Year’s Resolutions!

This Year, Put the IRS (and tax reduction strategies) in Your New Year’s Resolutions!

January 1 is almost here, and for millions of Americans, that means resolving to lose weight, quit smoking, drink less, volunteer more, or travel to new and exciting destinations. Seeking public support, we post our resolutions on Facebook and other social media, and even make bets with our friends over who will succeed more magnificently.

The sad reality is that most New Years’ resolutions fall woefully short. By Groundhog Day, we’re back in our bad old habits. Those gyms and fitness clubs that were full in January? By February, they’re empty. Those pantries that are full of healthy vegetables now? By Valentine’s Day they’ll be packed full with “foods” ending in “-itos”!

So, this year, why not make a resolution you’ll want to keep? Why not resolve to stop wasting money on taxes you don’t have to pay! Personal tax advice could be just what you need.

The good news is, you can do this without starving yourself, spending hours on a treadmill, or giving up your favorite vice. You just need a plan. Tax planning is the key to paying the legal minimum, especially with today’s higher rates. And a good tax plan will improve your financial fitness for next year and all the years to come.

Call me today at 610-945-1954 for your free Tax Analysis. We’ll find the mistakes and missed opportunities that may be costing you thousands today, and show you how “New Years” tax planning can save thousands more tomorrow. We guarantee you’ll appreciate the fresh start with your taxes charity. So call now to schedule your Analysis!

Sincerely,

David M. Warrick, CFP EA
Enrolled Agent
“admitted to practice before the IRS”

By |2014-12-17T11:03:01-04:00December 17th, 2014|
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How To The Reduce or Eliminate The Tax Consequences of a Required Minimum Distribution or RMD?

How To The Reduce or Eliminate The Tax Consequences of a Required Minimum Distribution or RMD?

Barbara Davis, needed personal tax advice. She is 75, and has an annual income from social security, a pension and some IRA investments totaling $60,000 annually. She and her late husband also managed to save several hundred thousand dollars in non‐qualified CD’s, currently earning low rates. Her RMD’s are increasing each year, and she would like to pay less in taxes, and support several local charities.

The Tax Reduction Network suggested the following strategy as a way to support her favorite charitable work, have a future income, and create a way to re-characterize their qualified money without substantial tax consequences.

The Tax Reduction Network suggest the following strategy as a way to support their favorite charitable work, have a future income, and reduce the tax consequences of a Roth conversion.

Here’s how it worked:

1. Barbara transferred $100,000 from a variety of poorly performing non‐qualified assets to fund a TRN Strategy.

2. Mary received a $48,961 immediate income tax deduction which she can use against 50% of her AGI this year, with a potential 5 year carry‐forward.

3. The new TRN Strategy can provide for a structured inheritance for her children, OR she can turn on an additional income herself in future years.

4. Mary recommended her favorite charities to benefit immediately from her completed Legacy Strategy.

Results:

Current Market Value of Assets funding TRN Strategy $100,000
Immediate Charitable Income Tax Deduction $ 48,961
Tax Savings at Estimated 25% Tax Bracket $ 12,240
Annual Income Payments Beginning in 10 years $ 8,216
Total Payouts Over 15 Year Term Certain Payout $123,242

This is one just one way of reducing taxable income

Call now at 610-945-1954 to set an appointment.

 

By |2014-12-11T09:51:39-04:00December 11th, 2014|
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How Can You Convert an IRA to a Roth IRA and Eliminate or Reduce The Tax Consequences?

How Can You Convert an IRA to a Roth IRA and Eliminate or Reduce The Tax Consequences?

Mike & Mary Biden, ages 75 and 73, needed personal tax advice. They currently have over $400,000 in various bank accounts earning less than 1.5%. They also have a number of IRA’s totaling $300,000. They would like to reduce or eliminate their RMD’s, as they currently have enough income from social security and their pensions to enable them to live comfortably. Their long‐term care needs have been addressed. Their unwanted RMD’s are pushing them into a higher tax bracket, and they are also concerned that their heirs would pay substantial taxes should they inherit the IRA’s.

The Tax Reduction Network suggested the following strategy as a way to support their favorite charitable work, have a future income, and create a way to re-characterize their qualified money without substantial tax consequences..

Here’s how it worked:

1. Mike & Mary funded a TRN Strategy, $200,000 of non‐qualified assets that were earning very low rates.
2. The TRN Strategy issued a Deferred Income program that will payout to them, or to their heirs beginning in 10 years (they may turn on income sooner if they need to) for 20 years.
3. Mike & Mary received an immediate income tax deduction of $94,137.
4. The Biden’s recommended that their church and their local homeless shelter receive immediate charitable grants as a result of their completed TRN Strategy.
5. The Roth conversion was elected on some of their IRA’s, utilizing the tax deduction to
off-set what would otherwise have been a taxable event.

Results:
Total Value of Assets transferred $200,000
Tax Deduction Created $ 94,137
Tax Savings @ 25% $ 23,534
Annual Income (10 yr. deferral /20 yr. payout) $ 14,283
Potential Benefit (payout plus tax savings) $ 309,194
Amount of Charitable Recommendation $ 6,000

This is one just one way of reducing taxable income.

Call now at 610-945-1954 to set an appointment.

 

By |2014-12-11T09:50:22-04:00December 10th, 2014|
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IRS Reveals How High Income Earners Pay No Tax!

IRS Reveals How “High Income Earners Pay No Tax”

The IRS “Statictics of Income” division has just released the Spring SOI Bulletin. While we don’t expect it to challenge the latest Tom Clancy thriller on the best seller list, the Bulletin actually appeals to an even bigger audience- anyone who wants to learn, the secrets of reducing taxable income.

The big news in this issue was this: in 2007 4,535,623 Americans reported “ adjusted gross incomes “ of more than $200,000 or more. 10,456 of them paid zero federal income tax! I mean nothing, zip, zilch, nada!!!

Paying no tax is hardly remarkable. According to the Washington-based Tax Policy Center, this year 47% of Americans will pay no federal income tax. That’s because their income is so low, or because they qualify for enough exemptions, deductions, and credits to eliminate any liability. But making $200,000 and paying no tax-now, that’s an accomplishment. How did they do it? Where did they get the personal tax advice?

According to the IRS, here are the items that produced the largest effects on high income returns:

• Interest Paid (including mortgage and investment interest)

• Taxes Paid

• Charitable Contributions

• Casualty and theft Loses

• Partnership and “S Corporation” loses

• Plus five proprietary tax reduction strategies that the IRS hopes you never learn!

You probably don’t want to count on “casualty and theft losses” as a way of reducing taxable income. But you can count on one thing. Very few of those 10,456 lucky winners sat down to file their taxes and discovered their zero tax bill by surprise. Almost all of them did it through careful tax reduction planning.

Do we sound like a broken record with the “P” word. Sorry, that’s too bad. Tax planning is really the key to minimizing your taxes. So while we can’t promise tax planning will eliminate your tax bill entirely, we can tell you it gives you your opportunity to keep more of what you earn.

Are your friends , family, or colleagues grumbling about unhappy April 15th surprises/ You can be a hero by helping them avoid those surprises. Let them know that we can help, with the right tax plan and the right concepts and strategies for them. And if you don’t have a tax plan of your own…well, you know where to find us!

Call now at 610-945-1954 to set an appointment.

 

 

By |2014-12-10T17:42:48-04:00January 16th, 2014|
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What is year-end tax planning? or How do I reduce taxable income?

As the end of the tax year approaches, you can probably get a rough idea of how much you’ll owe in taxes. To lower your tax bite, it is wise to take certain steps at year-end. Numerous strategies exist to help you, including reviewing professionally developed year-end tax checklists, performing a marginal tax rate analysis to ensure that you won’t be pushed into a higher tax bracket unnecessarily, and postponing income and accelerating deductions (or vice versa).

Year-end tax planning and also investment decision-making may sometimes result in substantial tax savings. Year-end tax planning primarily concerns the timing and the method by which you report your income and claim your deductions and credits. The basic strategy for year-end planning is to time your recognition of income so that it will be taxed at a lower rate, and to time your deductible expenses so that they may be claimed in tax years when you are in a higher tax bracket. In a nutshell, you should try to do the following:

  • Recognize income when your tax bracket is lower
  • Pay deductible expenses when your tax bracket is higher
  • Postpone the payment of tax whenever possible

Can checklists help you? Yes they can, but “How Do I Reduce My Taxes?”

Tax planners develop checklists to guide taxpayers toward year-end strategies that might help to reduce their taxes. These checklists offer several suggestions and are arranged in categories, such as “Retirement Planning Checklist.” The checklists trigger tax-savings ideas that may not have occurred to you. At the Tax Reduction Network, we provide these checklists during our clients’ annual reviews. Our clients have saved thousands of dollars by not overpaying their income taxes year after year! So you can show me how to reduce tax liability!

For instance, one suggestion may be to shift income at the year’s end to family members who are in lower tax brackets to minimize your overall taxes. Another suggestion might be for a married person to calculate his or her taxes two ways, using both married filing jointly status and married filing separately status, in order to minimize income tax liability.

By |2014-12-10T17:42:43-04:00November 30th, 2012|
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Eliminating Taxation of Social Security Income

Do you need personal tax advice? In the example below this client is eliminating the taxation of their social security income.  If your social security income is being taxed, there are 100% legal ways to stop paying tax on this money.

A Tax Return Example Using Proven Tax Reduction Strategies

Old Tax Return                                                                                     New Tax Return

$10,000                                      Interest Income                                  $ 0

$10,000                                      Dividend Income                                $ 0

$10,000                                      Capital Gain Distributions                  $ 0

$20,000                                      Pension & Annuity Income                $ 20,000

$13,600                                      $16,000 Taxable Social Security       $ 0

$63,000                                      Total Taxable Income                        $ 20,000

$6,221                                        Total Tax                                            $ 438

Tax Savings                                      $5,738

Please check line 20b of your tax return that you recently filed.  If there is a dollar amount on that you line, you are paying tax on that income.  Would you like it to stop? Call 610-945-1954 today!

If you fill-in the Tax Reduction Summary form today, you will receive a Free personalized 30 minute Tax Reduction Summary Report which is valued at $750. It will show you specific ways to reduce your tax bill by thousands of dollars each year or more! And that includes the tax on your social security benefits.

For more information, call 610-945-1954 today! If you are an individual or business owner earning over $200,000 or are married and earning over 250,000, President Obama has a new tax plan for you and it’s not going to lower taxes! Are you ready to start reducing taxable income?

Every day you wait; will cost you more and more in income taxes for 2014 and beyond.  Don’t procrastinate, fill-in the Tax Reduction Summary Form today to see how much you can save on your taxes.

 

By |2014-12-11T10:42:56-04:00September 20th, 2012|
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