Tax Planning
Tax Planning involves analyzing your financial situation to minimize your tax liability. It’s like a strategic game where you aim to owe less and potentially receive a larger refund at the end of year. Proper tax planning helps you save money, whether it’s for your child’s education, retirement fund, or growing your small business.
By strategically utilizing deductions, credits, and exemptions, you can legally reduce your taxable income. Consider timing income and expenses to your advantage (e.g., deferring income or accelerating deductions).
It’s essential to regularly review your financial situation and reassess your tax strategy after significant life events such as marriage, birth, or retirement.
Waiting until the last minute to prepare can lead to missed opportunities, inadvertently ignoring current tax law changes, avoiding professional advice, and avoiding consulting a tax professional for personalized guidance.
Tax Preparation
Tax preparation involves gathering and organizing all necessary documents to accurately report income, deductions, and credits on tax returns. The focus is on completing tax forms correctly and ensuring compliance with tax laws and regulations.
Tax planning, on the other hand, is a proactive approach that occurs year-round. It aims to minimize tax liability by strategically arranging finances. Unlike tax preparation, which looks at past transactions, tax planning looks forward. It involves strategies like timing income, planning expenses, and selecting the right retirement plan.
- Income Documents: W-2s, 1099s, and other statements showing your earnings.
- Expense Records: Receipts for deductible expenses (e.g., medical bills, business expenses).
- Proof of Deductions: Records related to mortgage interest, property taxes, student loan interest, etc.
- Financial Statements: Bank statements, investment account summaries, and retirement account contributions.
- Social Security Numbers: For yourself, your spouse, and any dependents.
- Previous Year’s Tax Return: Useful for reference.
- Health Insurance Information: Form 1095-A, B, or C.
- Business Records: If you’re self-employed or own a business.
Individuals
April 15: Deadline for filing federal income tax returns.
State Deadlines vary by state, so checking your state’s tax authority website is essential. Remember, failing to meet these deadlines can result in penalties and interest charges.
Extensions: You can request an extension to file by October 15.
Businesses
April 15: Deadline for filing C corporation tax returns (Form 1120).
Extensions: You can request an extension to file by October 15.
Partnerships and S Corporations:
March 15: Deadline for filing partnership and S corporation tax returns (Form 1065 and Form 1120-S).
Extensions: You can request an extension to file by September 15.
Estimated Quarterly Payments
Estimated tax payments for individuals and businesses are due on April 15, June 15, September 15, and January 15.
- Late Filing Penalty: If you miss the deadline without an extension, the IRS may impose a penalty based on the amount of tax owed.
- Interest: Interest accrues on any unpaid tax balance.
Financial Coaching
Financial coaching can assist you in achieving your financial goals by providing personalized guidance, creating a structured plan, and offering support and accountability throughout the process.
You can discuss a wide range of topics with a financial coach, including budgeting, debt management, saving strategies, investment options, retirement planning, financial goal setting, and overcoming financial obstacles
Clients who have worked with financial coaches have shared success stories of paying off substantial debt, building emergency savings, achieving financial independence, reaching long-term investment goals, and experiencing overall financial stability and confidence.
Bookkeeping Services
Bookkeeping is the process of recording and organizing financial transactions of a business. It is essential for businesses as it helps track income, expenses, and overall financial health, enabling informed decision-making and ensuring compliance with tax regulations.
Tasks included in bookkeeping services typically involve recording financial transactions, reconciling bank statements, managing accounts payable and accounts receivable, maintaining general ledgers, preparing financial statements, and ensuring accuracy of financial records
Accurate bookkeeping can benefit your business by providing a clear overview of financial performance, facilitating budgeting and forecasting, aiding in tax preparation and compliance, improving cash flow management, identifying areas for cost savings, and enhancing transparency and credibility with stakeholders.