Will Tax Planning Benefit You?

 When we review tax returns of new clients, we usually find they were paying more taxes than they needed to. Most had either prepared their tax returns themselves or did not receive enough advice from their previous tax preparer. The most prevalent problem is failure to adequately tax plan.
What Is Tax Planning?
Tax planning is the practice of using legal strategies to delay or avoid paying taxes. Unlike preparing your tax return, you can engage in tax planning anytime during the year. Tax planning allows you to take full advantage of tax law provisions, effectively use tax credits and deductions, and employ tax breaks.
Who Should Tax Plan?
Among those who benefit from tax planning include taxpayers who:
• Are concerned about paying their children’s college education
• Are seeking a comfortable retirement
• Are self-employed, partners in a business or shareholders in S corps
• Are planning to buy or sell real estate
• Have recently experienced rapid growing income
• Previously have been audited
• Have multiple streams of income
• Earn over $200,000 per year
• Have foreign income sources
• Could be subject to the alternative minimum tax
• Are expecting sizable capital gains
• Have two or more jobs
Who Should Provide Your Tax Planning?
If you fall into one or more of the above categories, you should work with an experienced tax preparer who is available year-round. Thus, consider avoiding nationwide tax services that are only available during tax season. You should question the firm you are considering about how much planning you will need and what they charge. We believe preparers who wish to maintain long-term relationships should offer their clients unlimited advice throughout the year as a complimentary service. We do.
Contact Us
Should you have questions concerning whether you will benefit from tax planning, contact us.
Professional Tax Services is a locally owned provider serving over 3,500 local residents and businesses. For more information call 661-259-1967 or visit www.scvprotaxservices.com. Professional Tax Services offers unlimited free tax planning advice to their clients.