Happy New Year from Havig Tax & Consulting!

If you’re tired of paying too much in taxes, this could be your year to finally lower your tax bill. We have several customizable solutions for small business owners to not only save on taxes, but to set their families up for a better financial future.

 

What’s the difference between tax planning and tax preparation?

 

Tax Planning is beyond just tax preparation. It optimizes your life and business so you can pay less in taxes. As you begin to tax plan, you need to first understand the differences between two basic terms:

  • Tax deductions: These are what you can subtract from your taxable income. Some of your expenses may be deductible and can reduce the amount of income that is subject to taxes. Examples of these are contributions to certain retirement accounts or deductible expenses for small business owners.
  • Tax credits: These are what can directly lower your taxes. Example: a renewable energy tax credit of $2,000 could lower your tax bill by $2,000.

Tax planning involves arranging your finances in order to maximize tax credits and tax deductions while legally reducing your tax liabilities. Tax planning is an especially good idea for any small business owner or self-employed individual because there are several more options available to them than there are for wage-earning folks.

 

Find out how to save money with tax planning strategies by contacting our office to schedule your appointment.