| A tax consultant is a professional that specializing in | | | | subtracted from the payer's adjusted gross income. |
| the tax field. This is more than just helping tax payers | | | | This includes personal standard and itemized |
| fill out and fill their tax return once a year, but a full time | | | | deductions along with many others. The more |
| job. | | | | deductions and the greater the amount of the |
| These highly trained individuals are best at helping the | | | | deductions, the lower the taxes you will pay. |
| American tax payer come up with a tax strategy to | | | | A tax credit is different and is take off your tax liability |
| help minimize the taxes they will owe each year. This | | | | after your income is already adjusted. The amount of |
| is a plan that must be utilized all year long. | | | | a credit is subtracted from a payer's liability dollar for |
| Many tax payers only think about taxes at the first of | | | | dollar. Examples of this are the Earned Income Credit |
| the year until they file their yearly tax return, then it's | | | | and the Child Tax Credit. |
| forgotten except for the weekly reminder when they | | | | To fully understand how these and other factors will |
| look at their paychecks. The strategy a consultant can | | | | affect your tax liability and the amount of taxes you |
| devise for you works all year long so when tax | | | | pay can be explained by an experienced tax |
| season rolls around, the tax savings can be realized | | | | consultant. |
| and seen. | | | | Of course, the above is not legal or accounting advice |
| All tax strategies involve deductions and credits. The | | | | - it is for informational purposes only. Before making |
| right one for you is dependent on your situation and | | | | any decisions regarding legal or tax matters, it is vital |
| what you qualify for. Both of these reduce the amount | | | | that you consult a licensed professional lawyer or tax |
| of taxes a person pays but differently. | | | | accountant. |
| A tax deduction is when a certain amount of money is | | | | |