Tax Planning Services
Recordkeeping Best Practices
Tax time comes around once a year, but proper record keeping and document storage is best practiced year round. We can help you come up with a system for keeping track of important deductions such as mileage, unreimbursed employee expenses, rental and small business activity, and medical records. You should keep your tax returns and supporting documents for at least seven years.
Reducing Your Tax Liability
No one wants to hear they owe a ton of money on their tax return. Our proactive approach allows us to work with you throughout the year to minimize your obligation. If we cannot reduce it, we can at least prepare you for it so you will be ready when the return is filed.
Estimated Tax Payments
If you do not have income tax withheld from a W-2 or other source and have a tax liability at year end, you should make quarterly estimated tax payments throughout the year. Paying your tax liability in even installments throughout the year will prevent you from owing a penalty at year end for underpaying. Based on the current year’s information, adjusted for any known changes in the coming year, we will calculate estimated tax payments for you that you can pay with a check or electronically to apply to the coming year’s liability.
Merging Business and Personal Activities
One of the benefits of our relationship based interaction with you, we are able to plan and help you understand how your business activities will affect you personally. Whether you are the owner of a corporation, partnership, or are self-employed, the business will have a large impact on your personal tax return.
One of the more elusive, but significantly impactful taxes is the self-employment tax. In addition to paying federal, state, and local income tax, self-employed individuals are subject to an additional 15.3% tax on the earnings of their business. Taking the time to meet with one of our advisors if you are self-employed or considering starting a business can be some of the best spent time you can plan for. We will explain to you how the tax works and the best way to minimize or avoid it. Choosing the proper entity type for your business activity is critical and can save you significant tax dollars.