Vivinavi : Silicon Valley : (United States) Silicon Valley

First, you must understand if you are eligible for a tax return.

For example, if you are a married couple over 65 years of age with an annual income for the two of you that does not exceed $ 22,400 Ѓ, you are not necessarily required to file a tax return.

Did you know there are several Tax Deduction and Tax Credit programs that can save you money on taxes? ？

The most common are the Mortgage Interest Payment (Form 1098), Vehicle License Fee (the amount is shown on the Vehicle Registration Renewal Notice), and the Vehicle License Fee (the amount is shown on the Vehicle Registration Renewal Notice). ), medical expenses, and tax deductions for donations to various organizations.
If the total amount of Tax Deduction exceeds the amount of Standard Deduction, the amount of taxable income can be reduced by filing a separate application for Itemized Deduction.
Tax Deduction is effective in reducing taxable income, whereas Tax Credit can be deducted directly from the amount of tax.

Here are some examples of how you can get the Tax Credit.
If you rent and are single, your AGI is $ 36,955 or less, or if you are married ・ your AGI is $ 73.910 or less for joint income, you are eligible for California's Nornrefurndable Renters Credt.
or if your AGI is less than 73.910 Or, if you meet the RS requirements, you may be eligible for the Earned Income Credit.

Those who reduce their household energy consumption may also be eligible for the Residential Energy Credit.
These tax credits are often missed, so be sure to look into them.

Finally, let me explain why you should prepare your tax return early

For example, there are two types of capital gains: long-term capital gains over one year and short-term capital gains under one year.
The tax rate differs depending on the period, with the long-term capital gain having a lower tax rate.
Another example is stock options DŽ (stock purchase rights DŽ).
Stock options are differentiated into ISO* ᝣ (qualified ・ stock ・ option ᝣ) and NSO ᝣ (non-qualified stock - option ᡣ) In the case of NSO, the tax must be paid as soon as the option is exercised.
In the case of an ISO, on the other hand, you are not taxed unless you sell the shares you acquired.

Incentive Stock Option sounds more attractive, but that option also has an Alternative Minimum Tax, which is more difficult to calculate.
Higher earners may also be subject to additional taxes.

Hopefully this has helped you ？
understand that knowledge of tax returns and preparation in advance can increase your chances of further reducing your tax bill ？

. Also, since each individual's financial situation and goals vary greatly, we are happy to meet with clients one-on-one, if possible, to discuss specifics of their personal situation.
Please feel free to contact us first.

*Adjusted Gross Income Adjusted Gross Income: Income less amounts not subject to tax. Taxable Amount.
*ISO: Incentive Stock Option
*NSO: Non-qualified Stock Option