Before you hire a CPA, consider what you will be using them for. Do you only need them to prepare a tax return? Do you need someone to analyze your entire financial situation? Do you need help planning for the future? Will you use them for business or personal assets? Once you answer these questions, begin your search.


Get references from bankers, insurance agents, or other professionals.
Find out what each candidate charges for their services.
Verify credentials and check references.
Finally, conduct a face-to-face interview. Ask them how long they have been in the business; how long your task will take to complete; what software they use; and how often their clients get audited., Some income you earn is not subject to income tax. Find these sources of income and utilize them. Some examples include selling a primary home and taking advantage of employer offered fringe benefits. Examples of fringe benefits include health benefits, life insurance, disability insurance, and educational assistance., Tax credits are incredibly helpful and can reduce your taxes dollar for dollar (i.e., credits will reduce the amount of taxes you must pay). If you think you qualify, talk with your CPA about taking the credit. The IRS offers the following types of tax credits:


First time home buyer credits;
child care credits;
Adoption credits; and
Education credits., An IRA rollover happens when you withdraw money from one IRA and redeposit the funds in another IRA no later than 60 days after you receive the funds. if you do this, the transaction will not be taxed.


However, new rules only allow you to do this once in any 12-month period. Therefore, you need to plan your rollovers carefully to avoid taxes., Any contributions you make to retirement plans, up to a certain amount, will not be taxed. In addition, the contributions will reduce your taxable income, which will in turn reduce your tax liability.


In 2014, the most you could contribute to a 401(k), 403(b), or 457 plan is $17,500.Try to contribute the maximum amount possible to reduce your tax burden as much as possible.
 Check your current withholding to make sure it is in line with your expected earnings. You should update your withholding any time you have a major change in your life. Some of these changes may include marriage, divorce, the birth of a child, or starting a new business. When you overpay, you reduce the amount of cash flow. If you underpay, you may incur penalties and interest.


To update your withholding, fill out IRS Form W-4 and turn it in to your employer. IRS Form W-4 can be found at https://www.irs.gov/pub/irs-pdf/fw4.pdf. The Form will ask you whether to withhold at a single or married rate; how many withholding credits you claim (each allowance reduces the amount withheld); and whether you want anything else withheld., When you do your taxes (or have someone do them for you), you want to make sure you take as many deductions as possible. When you do your taxes, you have the option of either taking a standard deduction or itemizing your deductions. To choose between these options:


Calculate your itemized deductions, which will include expenses like mortgage interest, state and local income taxes or sales tax, real estate taxes, gifts to charities, casualty or theft losses, and un-reimbursed medical expenses.
Know your standard deduction, which for a single person is $6,100.Compare the two and make a choice. Take advantage of whatever option offers you a bigger deduction.
 You can benefit from investment losses by selling them off. To qualify, you must have both taxable gains and losses. You can then use those losses to offset your gains. If the loss exceeds your gains, you can deduct the loss., When you give cash to an IRS-qualified organization (i.e., a 501(c)(3) organization), you can deduct the full amount of that gift if you itemize your deductions.
Hire a certified public accountant (CPA).
Earn tax-free income.
Maximize tax credits.
Carefully plan individual retirement account (IRA) rollovers.
Increase retirement contributions.
Update your current withholding.If you are an employee, your employer likely withholds income tax from your pay.
Maximize deductions.
Check your investment income.
Donate to charity.
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