As tax time draws ever nearer, it’s time to start thinking ahead. With The Jones CPA Group, you can get professional help actually planning for your taxes, rather than only preparing your return. Here are just a few of the ways that our tax planning and tax projection services can help you.
Have you ever filed your taxes, then been completely shocked by the amount you owed? Some people have even had the experience of owing far more than they expected, and not being able to afford the expected payment. If you don’t want to be caught in this situation, our professional tax projections can help.
Our qualified CPA will look over your finances with you and give you an estimate of what you will owe when you file your taxes. This can help you begin preparing now, so that you’re not caught off guard after filing; and if you will owe a large sum, you can begin saving for it sooner.
In addition to being able to estimate the amount you’ll owe in taxes (or the amount you’ll get in your refund), we can offer you in-depth tax planning advice. We can meet with you and consider ways to potentially reduce your expected taxes through proper investments and financial planning.
For example, if your business has had an especially lucrative year, you may find yourself in a higher tax bracket than you were in last year. This means that it may be a good time to invest in some reasonable business expenses. Let’s say you’ve been putting off purchasing a new piece of equipment that costs $1,000. This year, you’re in a 35% tax bracket, which is higher than you’ve ever been before.
If you were to hang onto that $1,000 instead of purchasing the equipment, you would have to pay $350 in taxes. But if you purchase the equipment, since it is a tax-deductible business expense, you can essentially purchase it for 35% off—spending $1,000 and getting new equipment, as opposed to spending $350 in taxes and getting no equipment.
Proper tax planning is also vital for individual tax returns. Making proper investments near the end of the year may be able to reduce the amount you in taxes, depending on your financial situation. Our CPA can look over your personal finances with you and determine if it would be wise to make additional charitable contributions, or contribute more to a 401(k), HSA, or other tax-deductible savings account.
Though there is no guarantee that you can reduce the amount you owe in taxes, a professional CPA can help you make wise investments for both your personal and business tax returns. Call or stop by The Jones CPA Group in Orem, and set up an appointment for tax projections and tax planning advice from one of our CPAs. We’ll help you get prepared for tax season before this year even ends, so when April 15th rolls around, you have nothing to worry about.