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Financial Advisors Explain How Income Taxes Work
Posted by Weaver Insurance & Financial Advisors on
Some of the biggest questions financial advisors get from people about money surround income taxes. Everyone has to pay them, but few people really know much about tax codes or how to prepare their own taxes.
The experts at Weaver Insurance & Financial Advisors of Waynesboro, VA, explain everything you need to know about income taxes. They’ve been advising clients for over 50 years, and they’re happy to help you tackle all of your investment and insurance needs.
The IRS estimates that businesses and individual taxpayers spend about 6.1 billion hours dealing with tax filing requirements. Because this process is so time-consuming and tax codes can be complex, more than half of Americans rely on tax professionals or financial advisors for help with filing their income taxes.
While the process may seem daunting, income tax filing is actually rather straightforward. The most important number for income tax is your gross income, as this is the figure being taxed. This number is generally calculated by adding up all sources of income, including wages from your job, interest earned on bank accounts and investments, pension income, and any other sources that pay you money throughout the year.
The process starts to get more complicated when you factor in your adjusted gross income, which takes into account how many dependents you have, as well as all of the other deductions you or your business may be eligible for. Claiming deductions generally requires supporting paperwork, such as receipts for expenses. Figuring out these deductions can be tricky, which is why turning to a financial advisor for help is beneficial.
If you’re ready to talk to an investment advisor about all of your financial needs, call Weaver Insurance & Financial Advisors of Waynesboro at (540) 943-1221.