Have you been wondering if you’ve been paying too much tax? Not enough? Perhaps you are interested in ways to lower your tax liability throughout the year? Every tax situation is different and tax planning is never a one size fits all exercise.

Tax planning goes beyond just tax prep — it optimizes your life and business so you can pay less in taxes.

As you begin to tax plan, you need to first have a grasp on two basic terms.

Tax deductions: This is what you can subtract from your taxable income. As you look over specific expenses you incur throughout the year, they may be deductible and can reduce the amount of income subject to taxes.

Tax credits: This is what can directly lower your taxes. A tax credit of $2,000 lowers your tax bill by $2,000.

Tax planning involves arranging your finances in order to maximize tax credits and tax deductions while legally reducing tax liabilities.

This also involves considering the timing of income and purchases.

Of course, these are just the basics.

If you want more information about tax planning and how much you could potentially save, then let’s chat.

Contact us today to schedule your tax planning appointment before the end of the year.