Most of us start planning our tax season in the beginning of each new year, this way we are prepared for when tax season is actually upon us. Below is a few tips on how to plan your taxes so that you get the most out of it that I recently read on Open Forum.
Seek Professional Guidance. I hope you are not a business owner or entrepreneur that is still doing your company’s tax return. You need to hire a tax CPA to perform this function as well as give you guidance and direction in your tax planning efforts. These professionals spend every day of every year being experts in the tax code, and they spend weeks of their time every year keeping up with the changes to and complexities of the rules and mechanics of how the various state and federal agencies tax you and your business.
Make sure you have your objectives lined out clearly. What do you want to achieve at the end of doing your taxes, whether it be the most refund, write offs, donations and more. But most importantly make sure that your number one objective is to always comply with all state and federal laws.
Try to do your best to estimate how your year end results will be. Take your income and pay out’s from the most recent ended month, and then write up a plan on how you plan to do for the rest of the year, then take this to your accountant so they may start planning for the end of the year.