You all overpay income taxes to the federal and state governments. As a wealth advisor and CPA, I can tell you the easiest way I have found clients a lot of money is by just concentrating on their tax returns. While I never met any person who wanted to pay more in taxes, from my experience you ignore how to pay less taxes. I am speaking of overpaying taxes and by thousands if not tens of thousands of dollars, annually. This results in you working more years of life and working harder in your job. It also lessens the probability you are earning the cash flow you need to live the life you want now and in the future.
Have I got your ear yet?
BTW, this is not rocket science. How to pay less taxes is not necessarily due to not having many qualifying deductions. It is mainly from not planning taxes with your CPA or tax accountant during the year and not demanding proactivity from your tax professionals. What do I mean?
Most wait until the beginning of the next year, after the current tax year ends, to send their tax information to their professional. I have seen so many get their information in with maybe weeks or even days before the filling deadline. Even then, the information is spotty or incomplete. How can you expect your accountant to find tax savings from the year before, when the year is over and you did not spend the time to put it together properly. Solution: Get your tax information to your CPA in early December of the current year. You can estimate income and expenses for the last month. That way, there is a great chance to find more tax dollars. This is how to pay less in taxes. You should know what your tax return looks like BEFORE the end of the current year. I can’t guarantee how much you might find in tax savings, but I can guarantee if you have a great tax accountant, you will find some! Maybe a lot, annually.
Suppose your CPA is too busy before the end of the year to see you. Solution: Get a new tax person! They are costing you money.
Also, make your tax accountant accountable each year. Ask them specifically how much they have saved you this year…every year! Let them know you expect to see savings. I have done this with clients for over 30 years. When was the last time you asked your tax person this?
Yes, there are tax savings ideas like making charitable contributions before the end of the year or fully funding 401ks and many more. But you can find these and many more by seeing your tax accountant timely and demanding their time. CPA will know these, or they had better.
Give yourself a December holiday gift! Or you give the same monetary gift to IRS and the states and just can just work longer and harder in life.
If you are ready to take the first steps towards living the way you want now and for the rest of your life, look no further than this book, “Master Your Cash Flow.” Find out more here: https://alzdenek.com/book/