Are you having trouble paying beginning of the year taxes after the holidays? Come in and meet with our experts who will help you plan ahead. We will help you achieve lower year-end tax liabilities by properly setting tax strategies that will best suit your needs. We will help guide you on the right path by calculating your quarterly tax estimates and give you sound advice on certain areas of the tax law that a taxpayer must know. By informing and interacting with the taxpayer, we will form an ongoing partnership that will yield exceptional tax planning.
Do you need a tax planning strategy?
For most individuals and organizations, the answer is yes. Many people unknowingly pay a greater sum in taxes simply because of poor choices in financial planning and structuring. Some of the most commonly overlooked opportunities to reduce taxes include:
- Income management – Your total income is used to determine your tax rate, among other things, with higher earnings resulting in higher taxes. While you certainly do not want to make less money, you can reduce the taxable amount with certain investments, such as 401k contributions.
- Maximize deductions – We’ve all heard stories about people being caught claiming luxury items as medical expenses, personal vacations as business travel, and similarly unethical, and illegal, deductions. This leaves the honest taxpayer afraid to claim deductions in many situations. Understanding and utilizing the full scope of legally allowable deductions can make a significant difference in your total taxable income.
- Take advantage of credits – This is another aspect of taxation that costs many people money out of uncertainty. Do you know, and claim, your allowable tax credits?
- Adjust withholding – For the majority of individuals, a certain amount of income tax is paid with each paycheck. This amount can be adjusted to serve your financial purposes best. For many people, the best strategy is to match the deduction to realistic tax expectations, avoiding a large payment, or even to choose a slightly higher amount, resulting in a tax return. However, if you are an investor, you may be better served by minimizing your deduction, allowing you to invest and earn interest on the money until the tax period ends and it is owed.
These are just a few of the many ways you can simplify your life and minimize your taxes through good planning. Give us a call and learn more about how we can help.