Bergerson Tax Services, Inc.

Lower your taxable income, lower your taxes….

One of the best ways to lower your taxable income is to contribute to your tax deferred retirement account, such as a 401(k) plan. Contributions are made with pretax dollars, so are deductible from your taxable income. You can contribute up to $19,500 a year to such a plan in 2021. (catch up contributions of $6,500 for ages 50 and older)

The second-best way to lower your taxable income is to contribute to an HSA (Health Savings Account). This specific type of account has a unique tax benefit. Not only do contributions reduce taxable income, but qualified withdrawals are also tax free. For 2021, individuals can contribute up to $3,600 and families $7,200. (catch up contributions of $1,000 if age 55 or older)

One of the most common questions that we get from our clients is “why are we owing taxes this year?” Although the answer can be complex due to circumstances, the more typical solution simply is due to withholdings, or lack thereof.

The newly designed W-4 form that includes a five-step process instead of using withholding allowances which allows your employer to determine how much federal income tax to withhold from your pay. You typically fill out this form when starting a new job, but should also be reviewing it when your personal or financial situation changes, such as getting married, having children, getting a raise or adding a second job.

Although larger checks throughout the year may sound appealing, remember that any withholdings throughout the year is credited towards your total tax due. If you end up withholding too much, you will receive a refund but if you withhold too little, you will owe. Ideally, you want to find a good balance.

If you find yourself owing taxes at the end of the year, the first and best place to consider is adjusting your withholdings.

WE'VE MOVED!

Same great firm, new location.

2580 Rice Street, Suite 1
St. Paul, MN 55113

http://minnesota.cbslocal.com/tag/bergerson-tax-services/

Don’t Neglect End-Of-Year Tax Write Offs - CBS Minnesota In the midst of the holidays, taxes are likely the last thing on the minds of most people. But maybe they shouldn't be. From selling a car to buying energy efficient windows, there are ways to get money back before 2013 comes to an end. And there may be a few extra tax deductions that most people do...

Check out all the new information and articles on our website:
www.bergersonresourcegroup.com. New legislation, tax laws, updated deduction/credits, the fiscal cliff changes, etc!
Let us know if we can help with your tax and financial needs.
Available at (651) 647-4935 or [email protected]

Bergerson Resource Group

A recent segment on WCCO News that we appeared on

Tips For Getting Those Last-Minute Tax Deductions The holiday season isn't exactly known as a time to talk taxes. Maybe it should be. At Goodwill's across the Twin Cities, donations are up 15 percent as people attempt to get last minute tax deductions for 2011.

Is offering anybody who is experiencing a life transition like: a job loss, job change, marriage, birth of a child, divorce, aging parents, business start up, home purchase, college, retirement, or any other that would have financial implications a free hour of my time to see how I could help them through their transition and help them avoid the mistakes that most people make with their finances. 651-647-4935