No one wants to pay the government more than they have to. And while the government will sometimes find a tax mistake in your favor and refund the difference to you automatically, there are lots of ways you could be paying unnecessary income taxes without ever knowing it—unless you work with a financial professional who does tax planning.
But I already Have a CPA
Even if you pay a CPA to do your taxes, they might not be pointing out ways you could reduce your tax bill. That’s beyond their scope of work. Read your engagement letter. You’re probably paying them to prepare your taxes, and that’s it.
How Tax Planning Is Different from Tax Preparation
Tax planning is proactive. I can review your income, expenses, and life circumstances for the current year and see what opportunities you might have to save on taxes. The best time to do this is not in December when all those lists come out about last-minute ways to save on taxes.
I prefer to start tax planning for the coming year as early as possible. It takes time to implement tax strategies, or at least prepare for them. Sometimes you won’t want to make a move until December, when you see how things have shaken out for the year, but it’s best to prepare for possible moves well ahead of time.
I can also review your tax returns and transcripts for the last one to three years to look for oversights. You generally have three years from the date you filed your tax return to file an amended return and claim a refund if there are tax savings you missed.
Reviewing past tax returns also helps me get a fuller picture of your taxable income so we can look for opportunities to reduce your tax liability going forward. Reviewing tax transcripts allows me to identify discrepancies between what your tax returns say and what information the IRS has about your income.
getting your taxes right is key
How much you pay in taxes can play a major role in your financial success. Whether you believe in paying your fair share or just want to stay out of trouble, I can help you avoid paying more tax than you are legally required to.