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 more in taxes than you are required, and that more of your hard-earned money ends up back in your pocket—or is at least reinvested in your business.
With that being said, everyone should have a tax plan—regardless of your level of income. Your tax plan could be as simple as ensuring you receive the appropriate credits and deductions for your higher education, qualified dependents, professional expenses, or moving expenses. However, your tax planning needs may be far more complex.
By allowing Certified Public Accountant Micah Fraim to plan, prepare, and file your taxes—you can rest assured that you have access to the tax codes that work in your favor; opposed to against you.