Tax planning in the 91730 area aided by the accountants in our Rancho Cucamonga, CA firm

Tax Strategies

When you think of taxes and tax planning, you may imagine the stretch of time in which frantic activity occurs between the end of one calendar year and about April 15th of the following year. During this four-month frame, you may take a considerable look at your financials, seeking to find ways to deduct expenses or claim credits; whatever you can do to keep more money in your own pocket.

For most people, tax time can seem somewhat unpleasant, filled with chores and, in many cases, disappointment at the outcome of a year of hard work. If you live in the 91730 area code, the accountants at Whyte & Associates are within close proximity. We have assisted individuals, families, and businesses throughout Rancho Cucamonga, California and environs for many years. When it comes to tax planning, we say start now.

You may have filed your taxes for last year only weeks ago, but that does not mean that you cannot get a head start on next year’s tax strategies. The earlier you begin to consider how you can save, the more satisfied you may be with the outcome of your next filing. Some of the steps you may take throughout the year include:

  • Switch from an IRA to a Roth. Doing so will eliminate the taxation on withdrawals.
  • Consider making an adjustment to your paycheck tax withholdings. This can either give you more money throughout the year or can help you avoid a large tax bill by reserving funds incrementally.
  • Spread the wealth. Individuals may gift up to $14,000 per year to a family member or even to an unrelated person. Speak with your accountant about gifting and how it may play an integral role in your unique tax situation.
  • Contribute to your future. Money that you put into your own retirement or 401K will be excluded from your taxable income, which will, in turn, lower your tax bill. The extra contributions also provide a long-term benefit by securing your financial future after retirement.
  • If you have a flexible spending account, use it! Speak with your employer about the amount of pre-tax dollars available to you. The submission process is usually very easy, and the funds in this account can ultimately lower your federal and social security taxes.

Tax planning can feel overwhelming. The team at Whyte & Associates can provide you with the guidance you need to maximize your income. Schedule your consultation with us at (909) 575-0080.