At Huddleston Tax CPAs, we provide valuable tax planning and consulting services for our clients. If you are interested in maximizing your financial position for the future, contact our CPAs today.
Tax planning is the strategic approach to ensuring your finances are secure and prepare you for emergencies and lifelong expenses. In order to secure your financial future, planning needs to start today.
The following factors show up in most tax planning strategies:
- Exemptions
- Rebates
- Deductions
- Allowances
- Concessions
- Local tax laws & individual circumstances
Tax Reduction Strategies
To create effective tax reduction strategies, Huddleston Tax CPAs take full advantage of each tax saving opportunity. You will have a variety of options available to ensure your future financial position.
Tax planning is about forward thinking. It is about aligning your current business practices with methods to ensure maximal tax savings.
Common opportunities which you can take advantage of are:
Tax Deductions:
- Claiming tax deductible business travel expenses
- Claiming tax deductible charitable donations and business promotion activities
Tax Credits:
- Child and dependent care credit
- Hybrid car credit
So how do you come up with a complete strategy to maximize your future financial situation via tax savings? The truth is that there is a lot of information to absorb and consider. Contact us, and let’s start the conversation. Give us a call at 425-483-6600 today!
Frequently Asked Questions
What are the 3 basic types of tax planning?
There are 3 main objectives with tax planning: 1) increase your deductions 2) capitalize on tax credits and 3) decrease your income.
Regarding the first point, there are myriad deductions people don’t take advantage of because it can become complicated if you’ve don’t know what you should be tracking. Depending on your line of work, deductions may include assets to work from home, commuting, personal property taxes, investments, or even repairs & maintenance. The best way to identify these deductions is working with a CPA as an automated software may not recognize your situation.
Secondly, there are numerous tax credits people don’t take advantage of simply because they don’t know about them. For instance, there are tax credits for taking courses, college loans, or caregiving.
You can reduce your income with a 401k or IRA. This makes your total taxable income lower which can be paramount in reducing your tax bracket. If you’re in the middle of the tax bracket, a 401k may be more of a challenge, however if you’re just shy of qualifying for a lower tax bracket, a 401k is a must. This method can reduce your AGI (adjusted gross income), thereby reducing your taxes.
How do I start tax planning?
Starting is as simple as getting organized. First, determine what your tax bracket is. To do this, typically, you need your net income, and income after taxes. From here, the next step is identifying what deductions you know you qualify for. The next thing to do is evaluate all possible tax credits. From here, your route may diverge. Most either by increase their withholdings or utilize a 401k — depending on your financial situation a ROTH IRA may be ideal.
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