When facing a complex and difficult situation or crisis such as financial hardships, the very first crucial thing you need to do is to look for a professional, experienced, and reliable tax relief attorney to help and assist you in facing one of the hardest times of your life. Trust that an expert and trusted tax lawyer has the knowledge, skills, and experience to walk with you in this complex journey of yours.
Tax Relief Strategies for Individuals and Businesses Facing Financial Hardships
Here are some of the tax relief strategies your bankruptcy lawyer may suggest to you when facing financial hardships.
- To Look for Ways to Reduce Your Adjusted Gross Income
For business owners, one of the tax relief strategies that your bankruptcy lawyer may recommend you to do is to look for ways to reduce your adjusted gross income. For instance, if your business is a pass-through entity, you will have to report your business earnings on your tax return. On the other hand, if you pay yourself a salary, then you must also report your earnings and pay taxes. - To Explore Deductions and Credits
For individuals, one tax relief strategy that your tax relief lawyer will suggest you do is to explore deductions and credits. Since tax relief often comes in the form of deductions and credits, your trusted lawyer will investigate and dig through the available deductions and credits that may apply to your situation. The options can be related to education, homeownership, or medical expenses. Furthermore, this proactive approach can lead to significant tax savings. - To File for Debt and Losses Optimization
Another tax relief strategy that your Baltimore tax attorney may suggest you do when facing a financial crisis is to file for debt and loss optimization. Your tax relief attorney will recommend this approach because when you file for net operating loss or NOL carryback and alternative minimum tax or AMT credit refund claims to reduce tax payments and obtain immediate refunds for taxes paid in prior years. - To Be Strategic with Your Tax Elections
Another tax relief strategy that most tax relief lawyers will recommend to their business owner clients is to be strategic with your tax elections. For this approach, you can consider applying some strategies to your business expenses to help you reduce your taxable income. For instance, when you acquire new business equipment or machinery, you can deduct up to 60% of the cost under the 2018 tax law (TCJA). - To Utilize Tax-Favored Accounts
The last strategy in this blog that your tax relief lawyer may suggest to you when facing financial hardships is to utilize tax-favored accounts. When you have tax-favored accounts such as Health Savings Accounts or HSAs and Flexible Spending Accounts or FSAs, you can use this as a tax relief on qualifying medical expenses.
In Conclusion
These are only some of the tax relief strategies that your Baltimore tax attorney may suggest or recommend to you when you are facing financial hardships. To make sure that you are choosing and hiring the right, perfect, and most reliable tax lawyer to help and assist you during these hard times, please do not hesitate to contact Richard Hackerman at 888-243-5500 or 410-243-8800.
