What Are The Benefits Of Creating A Tax Plan?

Whether speaking of personal or business taxes, you know that you must pay your taxes each and every year—so you must be wondering if creating a tax plan is essential? If you live in the Roanoke, VA area, CPA Micah Fraim will work with you to create a personalized tax plan to provide you with the following benefits. Ensure You Have Enough Money Set Aside For Taxes If your personal finances have reached a point where you no longer receive an annual refund, and are instead required to pay taxes—creating a tax plan can help you to determine how much you need to set aside each month, so that you are not scrambling when your taxes are due to come up with the money you owe. If you are a business owner or a self-employed freelancer, estimated quarterly taxes are due every 3 months—making tax planning even more important. Ensure You Are Managing Documents Required For Credits And Deductions Aside from ensuring you are setting aside enough for your taxes each month, tax planning includes the process of identifying the tax credits and deductions you are eligible for. Once those are determined, Micah will work with you to create a unique tax plan to track and manage the documents and information required for your credits and deductions. Assist You With Creating A Tax Payment Plan If You Are Not Able To Pay Your Taxes In Full If for some reason you are not able to pay the taxes that are due, your taxes must still be filed in a timely fashion. Micah will work with you to explore what...

Common Questions About Tax Planning

Paying your taxes is inevitable, so you may be wondering how turning to Roanoke CPA Micah Fraim to create your quarterly or annual tax plan can be beneficial. Below are some of the most common questions related to tax planning, for both your business and personal tax needs. What Is Tax Planning? Tax planning is a vital part of both your personal and professional financial plan. Even if your personal taxes have not yet reached a point in which you are required to pay taxes at the end of the year, tax planning insures that you identify all applicable credits and deductions that you qualify for. It is also essential for timing personal and professional purchases, as well as investments—and for determining what types of retirement plans are the most appropriate. Tax planning also includes setting aside money each month for your quarterly business taxes, or annual personal taxes—to ensure that you have an adequate amount of money set aside when you decide to file. Is Tax Planning Only Required For Businesses? A common misconception is that tax planning is only required for businesses. However, if your income has reached a point where you are required to pay taxes each year—then a tax plan is highly recommended. Tax planning will help you decide when the best time to make a large purchase is, such as buying a new home. Tax planning is also important if you have created or are managing trusts for your dependents. How Do I Know If I Will Benefit From Tax Planning? The goal of tax planning is to ensure that you are not paying...