What Is Tax Planning? How Tax Service in McAllen Can Benefit Your Business
While most people only think about taxes when taxes are due, a TX CPA (certified public accountant) can help plan throughout the year! Tax planning services are a great way to make sure you don’t need to pay out the nose.
With a year-round tax planning service, you can stay ahead of the game and make strategic decisions that will maximize your savings and reduce what you pay when tax time rolls back around. Here’s why you need this important part of personal financial planning.
What Is Tax Planning?
Tax planning is thinking ahead to save money and is a good practice that everyone should use to help keep their finances on track. You can maximize your savings and make major purchases or life changes at the right time so you see a lower tax bill. It also helps you avoid risks like a tax audit, paying more than you need, or scrambling to find money when you need to pay a high amount after you file. That’s where your TX CPA, Abigail Y. Murray, can help you!
A CPA Can Help Reduce Your Taxable Income
Your adjusted gross income (AGI) is important for tax planning. It’s the taxable portion of your income after adjustments like retirement contributions or student loan interest. You can also work to change your cash flow to help reduce your taxable income further.
Saving for retirement is a popular way to reduce income and prepare for the future. However, 401(k) and IRA contributions come with restrictions and penalties for early withdrawal, so be sure you ask your TX CPA before you make any withdrawals!
Learn To Utilize Tax Credits With Tax Services in McAllen
Planning your finances to utilize tax credits is one of the critical steps a top McAllen, TX, tax planning service will tackle to plan your yearly taxes. The most notable credits are for adopting a child or paying for college expenses.
Attending college courses for personal interest can earn tax credits through the Lifetime Learning Credit. Additionally, check if you qualify for the Earned Income Credit to potentially receive a refund, even with no tax liability!
Increasing Your Income Withholdings Through Tax Consulting
If you’re a W2 employee, you may have noticed that your employer withholds some of your income with every check. These withholdings are how your income taxes get paid, with your employer matching half. What you may not realize is that you can have your withholdings increased. Not only will this help make sure you are less likely to need to pay at tax time, but you may even get a bigger refund!
Pay Your Taxes Quarterly With Tax Planning Services
If you are self-employed, you have likely dealt with sticker shock after seeing just how much you owe on Tax Day. If you make a lot, this can be a huge chunk of money you need to come up with.
Hopefully, you were withholding 15% of your income so you could pay your self-employment taxes! Even so, you can help space out your tax payments by paying quarterly. If you are doing really well, the best accounting in McAllen, TX, will always recommend paying every 3 months so you stay on the IRS’s good side.
Ready To Get Started With Tax Planning?
Don’t wait for the shock of a big tax bill: trust Abigail Y. Murray, CPA, LLC, for all your tax services in McAllen, TX. Whether you’re a young professional who wants to save, a parent who wants to plan your taxes around your family’s needs, or a business owner who wants to stay ahead, we can help!
We can even help with other services, such as accounting for nonprofits, our virtual chief financial officer services, or handling complicated international business accounting and tax services.