Your financial stewardship is too important to trust to a tax preparer (someone who only fills out tax forms) or a do-it-yourself tax software.
- Planning ahead: Your tax professional simply reminds you that your daughter will turn 17 next year—that’s typically a $1,500 hit to your wallet. BUT when your tax pro asks and then understands that she is also starting her college education next fall, your advisor reminds you that a tax credit will more than offset the $1,500 loss.
- Last minute no brainer: Your tax pro warns you that you’re going to have $2,600 to repay due to a Premium Tax Credit you took on your health care coverage last year. BUT up until April 15th you can still add some money to your Health Savings Account and knock that $2,600 down quite a bit.
- Planning ahead: December projections of your final current year income and deductions lead your tax professional to believe you’ll have a significant balance due to pay next April 15th. But, unless you feel like paying it earlier than necessary, you are advised to have the cash available when the deadline arrives. Your tax pro doesn’t stop there because he or she also knows that April 15th is the due date for the first quarterly estimate payment for the new year—and with your growing profits it’s going to be even more than last year. You don’t necessarily like the news, but you’d rather know in December that a big tax bill is coming rather than having a tax preparer or DIY software deliver the late-breaking, back-breaking news.
- Last minute no brainer: You are in business, so there ought to be some benefits—right? And there are. You bought some new office or production equipment last year. Now is the time to decide just how much to write off as a deduction. Your tax professional will assess current year and multiple year benefits before making the current year decision.
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