We want to do more for you than simply prepare your tax returns. We want to help you save as much money as possible! How, you may ask? Through the process of tax planning.
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.
Are you ready to find out how much you could be saving? Contact our office to set up your tax planning strategy appointment.