What does the term “tax planning” mean to you? Does it mean saving your receipts and keeping track of your expenses and income? Or is much more than that? The answer is yes. It is much more than just keeping track of your income and expenses. Tax planning is the practice of effectively using available strategies to either avoid or postpone taxes. It is the art of keeping as much of your hard earned money as you possibly can based upon current tax law.
There are several key aspects that should be included in your tax planning, and tax planning is really something that should be done throughout the year, even though you only file your income taxes once a year. These are just a few of the measures you should be considering when you are planning for your taxes:
- Using tax-law provisions to your full advantage
- Maximizing all of the tax breaks available to you by law according to the IRS
- Accelerating and increasing all available tax credits and tax deductions
Tax planning is invaluable. Furthermore, tax laws change every year and the new rules and regulations only increase the complexity. So, the importance of tax planning has never been greater. At the same time, the benefits of tax planning are also more valuable than they’ve ever been before.
By knowing and understanding important tax laws and regulations you can avoid some potentially huge mistakes that could cost you significant amounts of money. There are many mistakes people make when it comes to taxes that can be easily avoided. One of the best ways to prevent these kinds of mistakes is to seek professional tax planning help.
Having worked in the tax planning and tax preparation industry for 19 years, I specialize in tax planning for small businesses and individuals. I’ll help you make sure you are doing everything possible to minimize your tax liability. If you are in a situation in which you are unsure of how much tax liability you are going to have and in need of some tax planning to make sure you are on track, contact us to set-up a consultation.