Would you like to know how taxable income is determined? If you’re reading this article, then chances are that you’re about to begin the process of filing your taxes. We won’t dwell too long on how difficult it can be to do sometimes but instead, I’ll try to explain how you can determine what amount of your income is taxable in the simplest way possible.
So for those that don’t know, taxable income is defined as “the portion of an individual’s or a company’s income used to calculate how much tax they owe the government in a given tax year.” In layman’s terms, it’s just the amount of money that you’ve made that is taxable by the IRS every pay period, or if you’re self-employed, every year around tax season.
Now, for what you really came for. How do the powers that be determine how much of your income they’re going to take for taxes? It’s quite simple actually. You begin by taking the personal exemption amount and combine it with your itemized deductions and then net them against your adjusted gross income. Once you do that, you’re able to find your taxable income amount.
Let’s be honest; taxes are always a hassle. Whether you’re using the newest software and doing them yourself, or if you’re going to the local tax shop in your city and letting them help you out. It seems like as time goes on, most tax services have refused to evolve and improve because they know people need them. Well, that’s exactly where Master Plan is looking to change the game.
Located in Flower Mound TX, Master Plan Tax Services is not only evolving but are also elevating many of the things that should be expected from your local tax preparation service. With over 100 years of experience combined in the tax preparation services industry, the team at Master Plan know exactly what’s been lacking in the tax industry.
Whether you have a question about finding the amount of your taxable income, or you just want to find someone that you can have a true and meaningful conversation with about your personal taxes, the team at Master Plan is ready and waiting to help you with any and all things taxes, and hope to get the opportunity to show you why they should be the only name you think of when it comes to your taxes.