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Self-employment allows you to become your boss, come and go as you choose, and, of course, form a lifelong relationship with your accountant. In addition, if you're self-employed, you'll be responsible for your own FICA taxes and retirement plan, among other things. Here are some helpful planning tips. Know self-employment taxes and how they're calculated To avoid fines, pay your projected tax payments on time To save money on taxes, hire family members Establish an employer-sponsored retirement plan. Take maximum advantage of all business deductions. Health-care-related expenses can be deducted Note: One additional dollar in deductions saves 39% of that dollar in taxes. Feel Free to Discuss Tax Planning with us by booking a Business Consultations Today!

Taxes, like death, are an unavoidable part of life. But why pay more than necessary? Understanding the regulations and making the most of your tax planning opportunities are the keys to lowering your federal income tax bill. One part of tax planning is personal deduction planning. Our objectives are to maximize your deductions in the most efficient manner and take all deductions to which you're entitled. As a result of deductions, your taxable income is decreased! Understanding how deductions operate is the first step. Next, you reduce specific deductions from your total income. Then, to determine your taxable income, you reduce various deductions and exemptions from your AGI. The amount of tax you owe is determined by your taxable income. As a result, the more significant your deduction amount, the smaller your tax liability will be.

Let's have a look at where you spend your planning time. Jot down the answers to the 4 questions below before continuing to read this brief. To answer these questions, think in terms of hours. I devote · _____________planning my vacations and other recreation. · _____________planning my home improvements. · _____________planning my trips to the grocery store. · _____________planning my taxes. Let's now compare the amount of time you spend with the amount of money you pay. According to the Tax Freedom Foundation, you work 116 days to pay your taxes and only 62 days to pay your second largest expense—housing and household cost. Add up the time spent on house improvements and supermarket shopping excursions. Is it roughly half of the time you spend on tax planning? How about the time you devote to trip planning? When it comes to money spent, the foundation states that it takes 116 days of work to pay your taxes and just 22 days to pay for entertainment. That's all there is to it in terms of money. How does your time compare to that of others? Do you take six times as long tax planning? Every year, you should devote effort to tax planning. Tax planning saves you money, which you may put toward your business, personal, and leisure pursuits. Note: One additional dollar in deductions saves 39% of that dollar in taxes. Feel Free to Discuss Tax Planning with us by booking a Business Consultations Today!