Figuring out where to start when it comes to filing your taxes can be overwhelming, we’re here to help. When it comes to income tax planning, understanding tax rules and tax planning strategies will go a long way. Whether it’s determining your filing status and tax bracket to figuring how to leverage credits and deductions, our tax experts can help you with tax planning and strategies, or even file your taxes on your behalf.
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Tax Planning FAQs
Getting ready to file your taxes? Start with these tax planning FAQs to get on the right track:
Tax planning means preparing for tax season which can include doing your research on tax rules and changes in tax laws, gathering documentation about your income and expenses, or speaking with tax experts. Not only can tax planning reduce your stress when it comes time to file, but it can pay off by potentially lowering your tax bill. If you’ve done your research and have all your documentation prepared, you’re more likely to be able to find the tax deductions and credits you qualify for
Commonly used types of income tax planning include purposive tax planning and permissive tax planning as well as long-range and short-range tax planning. Depending on your goals, your tax preparer can help you implement the best tax planning strategy for your circumstances.
There are a variety of tax planning strategies that can be used by businesses and individuals. For example, tax strategies commonly used by individual income tax filers include maximizing retirement contributions, increasing charitable gift-giving, or transferring property to children. Similarly, businesses can optimize how their company is structured and how expenses are classified.
It is important to note that any tax planning strategies used should be in compliance with federal and state tax laws.
There are several ways you can reduce your taxable income including popular tax planning strategies like contributing more to retirement accounts, FSA, or college savings, tax-loss harvesting, investing in an HSA, and bundling deductions.
Taxation management is the management of your finances and tax filing in a way that ensures you remain in compliance with the IRS and tax laws. Proper tax management can help you avoid late or improper filing, related penalties, or criminal prosecution.
Hiring an experienced tax professional, like our experts at Community Tax, is a form of tax management. A tax preparer can help you ensure that your taxes are completed accurately and filed on time.