About Us

At Debem Tax Services we complete and file tax forms for our clients. With an extensive understanding of tax law, we review all of our client’s personal information, including Social Security numbers, income statements, and personal and business expenses, to determine which expenses and circumstances may result in tax deductions or credits. Based on the results of calculating a return, we also offer advice about the best steps to take to reduce the tax liability in the coming year.

It depends on a case by case basis. You typically don’t itemize if the standard deduction saves you more on your tax bill. For the 2022 tax year, the standard deduction is$25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.

All things being equal, a tax credit is often preferable to a tax deduction. Tax credits reduce your tax liability dollar for dollar while tax deductions lower your taxable income. For example, if you prepare your taxes and have a total tax bill of $10,000, a $1,000 tax credit would reduce your bill by that amount.

If you had a $1,000 tax deduction and earned $50,000 in taxable income, your income tax liability wouldn’t decrease by $1,000. Instead, your taxable income would now be $49,000. Depending on your tax bracket, that means you would save anywhere from $0 to $370 as compared to $1,000 from a tax credit.

Bookkeeping is  the process of tracking income and expenses in your business . It lets you know how you’re doing with cash flow and how your business is doing overall. Every business needs bookkeeping so that you don’t have unexpected realizations about account balances and expenses. Here are 7 reasons why bookkeeping is vital to your business.