FAQ

A tax agent is a registered and qualified professional that helps people and businesses with their tax concerns. They are licensed by the government or a regulatory authority to provide tax-related services such as tax preparation, tax planning, representation, and compliance.

QBI stands for Qualified Business Income. It is a significant deduction implemented as part of the Tax Cuts and Jobs Act (TCJA) in the United States. QBI permits domestic business owners, partners, shareholders in S-corporations, sole proprietors, and some trusts or estates to deduct up to 20% of their qualifying business income from a sole proprietorship, partnership, S-corporation, or LLC. The QBI deduction, on the other hand, has limitations and complications.

Having a professional handle your taxes can provide peace of mind, knowing that your returns are managed by someone who understands tax rules and regulations.
There are numerous reasons why people pick us to complete their tax returns, some of which are included below Complexity: Tax regulations can be complicated, especially for people with many income streams, investments, businesses, or overseas transactions. Our team of accountants are the experts in navigating these complexities and ensuring appropriate filings.

• Time-saving: Tax preparation can take time, especially if you are unfamiliar with the process or have many documents to review. We do these responsibilities efficiently, freeing you your time.
• Maximizing Deduction and Credits: We are well-versed in available tax breaks and credits you may not know. We assist you in optimizing your return by finding all potential tax-saving opportunities.
• Avoiding Mistakes: Tax return errors might result in penalties or audits. We are experts at minimizing errors, ensuring compliance with tax regulations, and lowering the chance of errors that may result in an audit.
• Expert Advice: We provide financial advice in addition to tax returns. They can assist you with financial planning, investments, and other financial decisions based on your specific circumstances and goals.
• Audit Assistance: If you are audited by the IRS, having an accountant who prepared your taxes might help you with support and representation.

We’ve started planning for the fiscal year 2023. As we near the end of the year, there’s a lot to think about, from remembering to make your final charitable contributions to ensuring you’ve fully funded your retirement accounts. We’ve identified five factors to consider as you prepare for the end of the year. As we approach the end of 2023, Charlotte Accounting and Tax Solutions pros can assist you with these or any other issues you may have.

Important tax planning considerations for 2023:

• The final trading date for the year 2023 is December 29. Ensure that any intended transaction is completed by December 29 to realize any capital gains or losses. Be aware of the wash sale regulation when harvesting capital losses
• Complete any Roth IRA contributions. Remember to withdraw your required Minimum Distribution (RMD) from your retirement accounts on time
• The standard deduction for Married Filling Joint taxpayers is $27,700 for the 2023 tax year, $13,850 for single taxpayers, and $20,800 for Head or Households.
• You can donate appreciated stock to charity organizations in addition to cash donations
• Consider donating your RMD to charity if the standard deduction exceeds your itemized deductions. This has the effect of lowering your taxable income.
• Consider delaying your compensation till next year.
• Make certain that your retirement funds are adequately funded.
• The maximum employee deferral contribution for 401(k), 403(b), and Governmental 457(b) plans is $22,500, while the catch-up contribution for those 50 and older is $7,500.
• The maximum contribution to a regular or Roth IRA is $6,500, with a $1,000 catch-up contribution. These can be funded as late as the filing date of your tax return (April 15, 2024), excluding extensions.
• Make sure your 529 education plans are properly funded for your children’s education.
• If you have flexible spending accounts, make sure to empty them before the end of the year.
• Check your payroll tax withholding before the end of the year to ensure everything is correct.
• Examine your expected tax payments and make your final payment for 2023 by January 15, 2024.
• Make individual gifts by the end of the year. However, keep in mind that the yearly gift tax exclusion for 2023 is $17,000. Married couples can donate up to $34,000 tax-free.

If you have any questions concerning year-end tax planning, please contact your Charlotte Accounting and Tax Solutions professional. When it comes to tax preparation, there are numerous aspects to consider. We can handle all your specific tax issues and assist you in developing a more comprehensive tax plan.

Gathering precise papers and information to record your income, deductions, and credits appropriately is part of preparing your tax return. Here’s a general list of everything you could require:

• Personal Details: This includes your SSN or ITIN and the same information for your spouse and dependents, if applicable.
• Income Statements: Collect documents such as W-2s (wages from employment), 1099s (different types: interest, dividends, and freelancing income), and other statements that reflect income earned during the tax year.
• Proof of Deductions: This can include receipts, invoices, or statements for deductible expenses, including mortgage interest, charitable contributions, medical bills, property taxes, and, if appropriate, unreimbursed business expenses.
• Investment Records: Statements from brokerage accounts, mutual funds, or other investments demonstrating capital gains or losses.
• Form 1095-A, 1095-B, or 1095-C demonstrating verification of health insurance coverage or exemptions.
• Profit and loss statements, records of business spending, and any appropriate business-related tax forms are required if you own a business.
• Tuition fees, student loan interest statements (Form 1098-E), and education-related expenses must be documented for possible education credits or deductions.
• Contributions to IRAs, 401(k)s, or other retirement accounts: Records of contributions to IRAs, 401(k)s, or other retirement accounts for prospective deductions or credits.
• Bank Account Information: If you’re expecting a tax return and want it deposited directly into your bank account, you’ll need your bank account
• Last Year’s Tax Return: Having the previous year’s return on hand might be useful, especially if there are recurring items or comparing changes.

Keep in mind that this is a generic list, and your individual scenario may necessitate extra documentation or papers. It’s also a good idea to keep all your tax-related documents organized throughout the year to make things easier when tax season rolls around. If you’re unsure about any specific requirements, speaking with a tax specialist can help.