Taking A Look At Understanding Your Taxes

Written by Economic Development Jobs on October 28, 2018. Posted in Corp tax, What is the franchise tax, What to know about the franchise tax

If you’re a person living in the United States, it’s just a fact of life that you need to pay taxes. And fortunately, these taxes go towards making this country a better and better place to live in, something that any accountant specializing in taxes can attest to. While many people don’t realize this, taxes are very often important when it come to supporting the various communities in which we live.

This can be seen, for instance, in New York City, one of the most population cities in the entirety of the United States. New York City uses its tax dollars in a number of different and varying ways. For instance, just over thirty percent of the collected tax dollars are funneled into various uniformed agencies, ranging from the police department in the city to the fire services as well. Just under thirty percent goes directly back into the public schools that are established in New York City, providing them with the funding that they need to give the children who attend a good education. Just under twenty percent goes to health services as well as to welfare services, and the remaining twenty one percent is sent to various other services like the parks in the city as well as the system of public transportation that is so vital there.

And while this is, of course, just an example of a mere one city, many other cities and towns throughout this country have a similar breakdown of the allocation of tax dollars. And while the system of tax collections is certainly an imperfect one, it is also one that is necessary for those who take advantage of just about any public service, from hospitals to public schools to welfare programs like food stamps (which are present in various forms in all fifty states).

But even when you see the need for taxes, it can still be difficult to fully understand them, and this is where the expertise of a tax specialist or an accountant specializing in taxes can come into play. Hiring an accounting specializing in taxes is a great way to make sure that you’re filing your taxes right, either your own taxes or taxes for your small business. If you own a small business, hiring an accountant specializing in taxes (a tax accountant) is even more highly advisable.

Understanding your own personal income tax is also important, because the percentage of income that is taxed not only varies from location to location but will also vary from income to income. Again, we can look at the city of New York to see the disparity in income taxes among the people who live and work there. For instance, some people will be taxed a percentage that does not even hit four and a half percent. But if you are in a much higher paying job, you could end up paying more than eight and a half percent of your yearly income to income taxes. Understanding why this is the case is absolutely something that can be talked about with an accountant specializing in taxes.

And property taxes are also something that any home or property owner must be aware – and also something that an accountant specializing in taxes can help you to more fully understand. And it is hugely important to fully understand the taxes you are paying, as any accountant specializing in taxes can tell you, though far too few people realize this. But the right accountant specializing in taxes can very much help to rectify this problem and to bring a wide number (and variety) of people into knowing about taxes so much more clearly and fully – and smartly, too.

Property taxes, for instance, make up as much as forty five percent – nearly half – of all of the taxes collected in New York City – and in the state as a whole too, of course. For those who own multiple properties, talking to an accountant specializing in taxes can help you to determine what you will owe and how you might be able to minimize the tax dollars that you pay.

Taxes are confusing, but tax accountants can help.

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