ly tax

When reviewing your paycheck, you may notice a deduction labeled oasdi tax . Many employees are unsure what it means, why it’s deducted, and how it benefits them. At L&Y Tax Advisor, we believe understanding your tax obligations helps you plan better for your financial future. What Is oasdi tax? The term oasdi tax stands for Old-Age, Survivors, and Disability Insurance tax. It is a federal payroll tax that funds Social Security benefits in the United States. Both employees and employers contribute to this tax. The purpose of oasdi tax is to provide financial support for: Retirement benefits Disability income Survivor benefits for family members Dependent benefits in certain cases This system ensures that eligible individuals receive financial assistance when they retire or face unexpected life events. How Does oasdi tax Work? The oasdi tax is calculated as a percentage of your gross wages up to an annual wage limit set by the government. Employees pay a fixed percentage, and employ...

The EIC (Earned Income Credit) is a valuable tax benefit designed to support low- to moderate-income working individuals and families. Every year, thousands of eligible taxpayers miss out on this opportunity simply because they are unaware of how the EIC works or whether they qualify. With the right guidance from professionals like L&Y Tax Advisor, you can maximize your refund and ensure accurate filing. What Is EIC? The EIC is a refundable tax credit, meaning it can reduce the amount of tax you owe and may even result in a refund. It is especially beneficial for families with children, but certain individuals without children may also qualify. Key Features of EIC: Available to low- and moderate-income earners Refundable credit (you can receive money back) Based on income, filing status, and number of qualifying children Encourages and rewards work Understanding these criteria is essential before claiming the EIC , as errors can delay refunds or trigger IRS reviews. Who Qualifies ...

When tax season arrives, many individuals and business owners start asking the same question: can a cpa do taxes ? The short answer is yes but there’s much more to understand about the value a Certified Public Accountant (CPA) can bring to your financial life. At L&Y Tax Advisor, we often hear clients wondering whether hiring a CPA is necessary for filing returns. Let’s break it down clearly and simply. What Does a CPA Do? A Certified Public Accountant (CPA) is a licensed professional trained in accounting, tax laws, auditing, and financial planning. So if you're asking, can a cpa do taxes , the answer goes beyond just basic filing. A CPA can: Prepare and file individual and business tax returns Identify deductions and tax credits Provide strategic tax planning Represent clients before tax authorities Assist with audits and compliance issues Unlike basic tax preparers, CPAs must meet strict education, exam, and licensing requirements. This ensures a higher level of expertise an...

Value Added Tax, commonly known as vat, is a consumption tax applied to goods and services at each stage of production or distribution. Businesses collect vat on behalf of the government and pass it on after deducting the vat they have paid on their own purchases. Understanding how vat works is essential for compliance, accurate pricing, and financial planning. At L&Y Tax Advisor, we help businesses manage vat efficiently while ensuring full compliance with tax regulations. What is VAT and How Does It Work? Vat is charged at every stage of the supply chain where value is added. From manufacturers to wholesalers to retailers, each entity charges vat on sales and reclaims vat paid on purchases. Key Features of VAT: Applied to most goods and services Collected by businesses on behalf of the government Businesses can reclaim input vat Final burden falls on the end consumer For example, if a retailer buys goods and pays vat, they can claim that amount back when filing their vat return....