Tax season can be a busy and stressful time for many of us throughout the United States. In fact, the vast majority of us do not fully understand our taxes, what’s tax exempt, and why we are owed what we are owed – we just know that we have to file them by a certain date. And the majority of people are only familiar with the money that is taken out of our paychecks (or, in the case of self employment, that we report on a quarterly basis or at the end of each tax season) and don’t really know what that money goes towards and why. Working with a tax accountant can help to clarify some questions that we may have about taxes, and a skilled and experienced tax accountant can make tax season as stress free as humanly possible.
Hiring a tax accountant and accounting services can be hugely beneficial for breaking your taxes down and understand what taxes you owe where. For example, property tax and income tax are two separate types of taxes with different rates of taxation. Many people will owe both, but some – in the case of those who do not own property – will only be responsible for one. Both taxes, however, go towards public projects in our communities or for our country as a whole. In fact, more than thirty five billion dollars in revenue is collected on a yearly basis in New York City alone, and in 2017, nearly half of tax dollars collected by that same city came from the income tax. More than thirty percent of all tax dollars collected in a year in New York City, and around twenty nine percent of tax dollars are allocated in education. Around twenty percent are dedicated to programs focused on the health and welfare of the residents of the city, and the remaining approximate twenty percent are sent to various other programs throughout the city, such as parks programs and the other community betterment programs. Though many people view tax dollars as simply money that is taken from them that they later get a portion of back at the end of the tax season (though it is important to talk to a tax accountant to review what you are entitled to), tax dollars actually have a hugely positive impact on communities and go towards public works programs that would often otherwise suffer from a lack of funding.
The taxes you owe will depend on a number of factors, as your personal tax accountant can tell you. For instance, the overall amount of income tax that you pay by the end of tax season will vary on your yearly salary. In New York, the average salary is just over fifty thousand dollars, but those who make less will not be taxed as severely. The same depends on the value of your property. Tax accountants can tell you how your property value, as well as the overall size of your property, can affect your tax rates. It’s important to make these considerations when accepting a new job or buying and moving to a new location. Tax rates will also vary from city to city. In New York, for instance, the personal income tax rate can be as high as eight percent of an income, but this will not be true of all places in the United States.
Understanding your taxes can be a complicated process and it is important to seek help where it is needed, preferably in the form of a practiced and successful tax accountant. The right tax accountant can help you to complete your tax return forms on time as well as help you to gain a much greater understanding of the necessity of taxes and what they are actually used for, as well as why you personally owe what you owe and get back what you get back. Tax season is bound to be stressful, at least at some points, but there are concrete ways to mitigate that stress. Building understanding of the process is one of these ways, and perhaps the most effective way, to reduce your overall stress load regarding tax season.