Tax Debt Lawyer Hartford, CT
Tax Debt Lawyer Hartford, CT
Each year, following the holidays, many Connecticut residents turn their focus to their tax returns. For the majority of us, reducing the amount of tax debt we owe becomes our priority. The best time to begin thinking about how to reduce your tax debt should be before the year ends. Although it is often a year-long process, there are last-minute steps you can take to help reduce the year’s tax obligation.
A Hartford, CT tax debt lawyer from The Law Offices of Ronald I. Chorches can help you reduce how much you owe on your taxes. We are more than happy to meet with you to discuss your individual situation. In the meantime, the following are some steps you can take to help reduce your debt.
Defer Certain Income
The more you earn, the higher your tax bracket becomes. This means you could end up owing more taxes. To help lower your tax debt, consider deferring avenues of your income, including commissions, bonuses, or other types of earnings until after January 1st.
Make the Maximum Contributions Allowed to Your Retirement Accounts
If you have not hit your pre-tax limit for contributions to your 401(k) account, making deposits before the year ends can help reduce your taxable income. Another advantage is that it can boost your retirement account balance if your employer offers matching funds program.
Consider Flexible Spending Accounts
If your employer offers flexible spending accounts for childcare or medical expenses, you could still be able to take advantage of these accounts and making pre-tax contributions. However, make sure to check with your employer to see if balances can be rolled into the next year if you will not be able to spend these funds quickly.
Sell Off Any Low-Yield Investments
If you have any shocks or shares that are not doing well, selling them off before the year ends could help offset any capital gains taxes for those investments you have that are performing better. This is referred to as “loss harvesting” and could help reduce the amount of your final tax debt.
A tax debt lawyer in Hartford, CT knows that another issues in tax debt is when a client owes any prior year taxes. This type of tax debt can also involve interest, penalties, liens, or levies on any property the client owes.
A Hartford, CT tax debt lawyer can help you work with the IRS to implement the one or more of the following options:
- Working out an installment agreement that will allow the client to make monthly payments on the past due amount owed.
- Working out a compromise that allows the client to settle their debt for less than what they owe.
- Working out a temporarily delayed payment debt in the event the client has experienced a financial hardship that limits or prevents their ability to pay their tax debt.
Let a Hartford, CT Tax Debt Lawyer Help
If you are facing issues with tax debt and don’t know where to turn, the legal team at The Law Offices of Ronald I. Chorches can help. Call our office today to meet with a tax debt lawyer Hartford, CT clients trust.