Founded in 1981 and expanded in 2016, New York City-based Doonan Tax Services provides individualized tax preparation services to hard-working taxpayers across the tri-state area and beyond. Open throughout the year, Doonan Tax Services is committed to helping its clients protect their assets at all times.
Many people wait to think about taxes until the deadline is looming, but a bit of advance planning may lead to significant savings. For example, because traditional 401(k) and individual retirement account (IRA) plans offer pre-tax contributions, some taxpayers can reduce their taxable income by channeling money into these accounts throughout the year. Depending on the taxpayer's income and employment situation, some IRA contributions are tax deductible.
Contributions to employer-based health savings accounts may be not only tax deductible, but also effective in offering tax-deferred earnings and tax-free withdrawals for any qualified expenses. For employees, higher contributions to these accounts can not only lower tax bills in immediate but also provide additional resources for future medical needs.
Experts also advise taxpayers with employment income to evaluate withholding amounts on a regular basis. By analyzing the amount withheld from each paycheck and comparing that to expected tax responsibilities, employees can determine whether they are allowing their employers to take too much or too little from their take-home pay.
In cases where too much is being withheld, an adjustment can give the taxpayer more to invest and place into tax-efficient vehicles throughout the year. A correction of underwithholding, however, can save the taxpayer penalties in the following tax year.
