Income Tax Planning
There are many aspects of reducing your income taxes.
When we prepare your tax return, part of our service is to determine if you should be making quarterly estimated tax payments. If you are self-employed, have investment income, rental property income, make withdrawals from an IRA or pension plan, then you should monitor your income
carefully and pay any required quarterly Federal and State income taxes.
Reviewing your estimated taxes for the upcoming year gives you several benefits. First, it allows you to make adequate payments to avoid penalty and interest. Second, and perhaps more potent, it allows you to work with the timing of your income and the type and timing of your expenses to bring your taxes to a lower level while staying in full compliance with current tax codes. Seemingly small changes, such as withdrawing money from a brokerage account instead of an IRA, can sometimes make a difference of thousands of dollars in taxes. The same result can come from waiting until the following year to create income, such as selling an asset or cashing in a savings bond.
Self-employed people can especially benefit from tax planning. When each dollar of net earnings is subject to both the self-employment tax and the income tax, taking care to keep proper records and handle expenses for maximum deductibility can make the difference between a business that thrives and a business that is forced to close its doors.
Perhaps best of all is the peace of mind that comes with tax planning. Regular review and projection of expected taxes allows you to plan well in advance for upcoming tax bills and have the money available when the deadline for payment arrives.
Certified Public Accountant
Useful Resources
Use this link to determine your future social security benefits.
Information on your tax refund from the IRS.
Where's My State Refund?
Information on your tax refund from Indiana
Information on your tax refund from Michigan
