A S TAX & ACCOUNTING 2007 LTD.
Personal Tax
Working hard, day by day, you have earned the dollars you deserve. A S TAX & ACCOUNTING 2007 LTD. – Chartered Professional Accountants work with you to:
Minimize your taxes
Accurately prepare your tax return
Use all tax deductions available to you
Working closely with you in language you speak, we strive to find out who you are and what you do to make sure you have received all the deductions you are entitled to.
Personal tax refers to the taxation
- Taxable Income: Taxable income is the total income an individual earns that is subject to taxation. This includes wages, salaries, bonuses, rental income, investment income, and other forms of earnings. Certain deductions and exemptions may be applied to arrive at the taxable income.
- Tax Rates: Tax rates are the percentages at which different levels of income are taxed. Progressive tax systems impose higher tax rates on higher levels of income. The tax rates are set by the government and can vary based on income brackets.
- Tax Deductions and Credits: Tax deductions reduce the taxable income, thereby lowering the overall tax liability. Common deductions may include expenses related to education, homeownership, medical expenses, and contributions to retirement accounts. Tax credits directly reduce the amount of tax owed and can be based on factors such as income level, education expenses, and childcare costs.
- Tax Forms: Individuals use specific tax forms to report their income and calculate their tax liability. In the United States, for example, the common form for individual income tax is the Form 1040. Other jurisdictions have their own equivalent forms.
- Tax Deadlines: There are specific deadlines for filing personal tax returns and paying any taxes owed. Missing these deadlines may result in penalties and interest. The deadlines can vary by jurisdiction and may be influenced by factors such as the source of income and the filing status.
- Tax Planning: Tax planning involves strategic decisions to minimize tax liability within the bounds of the law. This may include optimizing deductions, taking advantage of tax credits, and making informed decisions about investments and other financial activities.
- Self-Employment Tax: Individuals who are self-employed are responsible for paying both the employee and employer portions of certain taxes, such as Social Security and Medicare. This is often referred to as self-employment tax.