Our Address
Individuals ● Business ● Tax Advisory ● Payroll Services
1441 Kapiolani Boulevard Suite 912
Honolulu, HI 96814
We file their taxes, provide bookkeeping services and
Business organization consulting.
Can't Itemize? There are Still Tax Breaks for You!
A common misconception in tax filing has been that if you use the standard deduction versus itemizing your deductions you have few additional benefits available to reduce your tax bill. This is often not the case.
Standard or Itemize?
Every taxpayer can take the standard deduction to reduce their income prior to applying exemptions. However, if your deductions are going to exceed the standard amount you may choose to itemize your deductions.
The primary reason someone itemizes deductions is generally due to home ownership since mortgage interest and property taxes are deductible and are generally high enough to justify itemizing. Common sources of itemized deductions are mortgage interest, property taxes, charitable giving, and high medical expenses.
What is Available
So what opportunities are available to reduce your taxable income if you use the standard deduction? Here are some of the most common:
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IRA Contributions (up to $7,000, or $8,000 if age 50 or over)
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Student Loan Interest (up to $2,500)
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Alimony Paid (if divorce or separation agreement is effective prior to 1/1/2019)
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Health Savings Accounts (if you qualify)
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Donating appreciated long-term capital gain stock.
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Self-employed health insurance premiums
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One-half of self-employment tax
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Numerous education incentives such as Savings Bond Interest, Coverdell accounts, American Opportunity (Hope) Credit and Lifetime Learning Credit
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Plus numerous other credits including the Earned Income Credit, Child & Dependent Care Credit, Child Tax Credit, and Elderly or Disabled Credit.
Income limitations often apply to these tax reduction opportunities, but for those who qualify, the tax savings can be significant. This list is by no means complete. What should be remembered is to rely on a complete review of your situation prior to jumping to the conclusion that tax breaks are just for someone else. That someone else might just be you, the standard deduction taxpayer.
When they are filing their taxes, taxpayers need to choose between taking the standard deduction and itemizing their deductions. If you choose the standard deduction, you will not be able to claim itemized deductions.
However, most people take the standard deduction because the Tax Cuts and Jobs Act, which went into effect in 2018, greatly increased the size of the standard deduction. Unless a taxpayer can claim many itemized deductions, they will receive a greater benefit from claiming the standard deduction.
Certain deductions may be helpful to people who are pursuing or who have pursued higher education. If your adjusted gross income does not reach a certain threshold, you can deduct a certain amount of the interest on your student loans. You also may be able to deduct a certain amount in tuition and fees for higher education.
This deduction also applies to higher education for your spouse or a dependent. If you take either the American Opportunity tax credit or the Lifetime Learning tax credit, though, you cannot use this deduction.
10 Hawaii Tax Filings & Forms:
N-11 - Individual Income Tax Return
N-30 - Corporation Income Tax Return
N-20 - Partnership Return of Income
HW-14 Withholding Tax Return
UC-B6 Unemployment Quarterly Contribution Report
N-15 - Nonresident and Part-Year Resident Income Tax
N-35 - S- Corporation Income Tax Return
G-45 General Excise/Use Tax Return
HW-14 - Withholding Tax Return
HW-3 Employer's Annual Return and Reconciliation of Income Tax Withheld From Wages
BUSINESS TAX FILING
We are well-versed in business tax and accounting and can work with any business including partnerships,
S-corporations, C-Corporations, LLCs, corporations, and non-profits.
Tax Filing
Income Tax Return,
Bit Coin,
Rental Properties
and..more!
Let's Save You Money this
Tax Season
Tax Services. Financial Consulting. Let Us Do the Math.
The best solution for tax advisory, strategy, and payroll.
Skilled Oahu Tax Experts
Well Rounded Tax Advice
Tailored Tax Solutions
Serving small to mid-size companies of all industries.
Diamond Head Tax Group is a Honolulu locally owned and operated business that serves individuals and small and medium business. Services include tax planning and preparation, charitable tax planning strategies, social security taxation reduction, sales tax preparation, small business strategy development, QuickBooks setup, and payroll services. Clients appreciate Diamond Head Tax Group's help, advice, flexible hours, and thoroughness.
OUR TAX SERVICES
Tax Preparation
Tax Planning
Sales Tax Preparation
Professional Payroll Services
Small Business Strategy
Roth IRA Conversion
Charitable Tax Planning
QuickBooks set up
Social Security Taxation Reduction
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Oahu Tax Services
We help individuals and businesses with tax advisory and payroll services.
Talk to one of our Oahu Tax Professionals today to start saving.
