The end of summer is near! Although it’s sad to see the longer days and sun go, it’s a great time of year to get focused on being proactive about saving money on your taxes.
Don’t wait until next April to figure out how much you owe or how big your refund will be. Here are several strategies for self-employed individuals and small business owners to implement that will save money on taxes:
- Utilize your accountant (*cough cough*) to create a proactive tax plan that will help you estimate your liability or savings.
- Contribute to a qualified retirement account
- Contribute to an HSA
- Purchase equipment, supplies, vehicles, or other assets
- If you do still have wage income (reported on a W-2), use the IRS Withholding calculator tool to estimate your tax liability. You can then change your withholding or make Estimated Tax Payments to not only prevent the surprise tax bill, but to prevent the “Failure to Pay” penalty. You can find the withholding calculator on the IRS website: https://www.irs.gov/individuals/tax-withholding-estimator
As always, if you’re interested in hearing more about these tax savings strategies, contact our office. We’d love to help you legally reduce your tax bill next year!