While regular tax planning is crucial for any taxpayer, there are certain scenarios that can really put you at financial risk. Looking ahead to what the tax season might bring can give you a leg up. To keep your tax liability low, be sure to review this list. The sooner you know what to watch for, the better off you’ll be!
7 Signs You’re Due for Strategic Tax Planning
If any one of these items lines up with something you or your family have experienced in the past year (or expect to address sooner than later), it’s definitely time to schedule a tax planning session. Your local accounting firm or tax planner can help ensure you’re on the right track.
1. You owed tax last year
Surprise tax bills are never convenient. If you ended up owing the IRS in the previous tax year, that’s a sure sign a little tax planning can help you avoid issues next season.
2. Your income has grown
Single taxpayers who earn over $150,000 and joint filers with $200,00 or more typically need to review their tax strategy on a more serious basis. As your wealth grows, there are higher tax rates for a portion of that income. What’s more, certain tax benefits might begin to phase out.
3. Your home life is shifting
A marriage or divorce always merits a tax planning session. And if you have kids going to college next year, you might qualify for some beneficial tax programs!
4. You’re running a small business
As a business owner, you already know the importance of watching your bottom line. Teaming up with a tax professional will help confirm that you’re exploring all of the small business tax credits available.
5. Your job status has changed
Whether you’ve recently accepted a new job offer or you’re newly unemployed, there can be a couple of key tax impacts to consider—before you get ready to file.
6. You have new medical expenses
Itemizing deductions isn’t always the easiest route to take. But with a good tax planning strategy, you’ll be able to learn whether you’ve overlooked any ways to minimize your taxes.
7. You’re overdue for an estate review
New estate laws have made it more important than ever to conduct an annual estate review. Additionally, there are specific tax implications for buying or selling a home, as well as going through a home foreclosure.
NSO & Company: We Make Tax Planning Easy
This list certainly doesn’t encompass all of the motivators for a professional tax planning session, but it’s a good place to start! If anything here caught your eye, please know we’re here to help.
NSO & Company is a locally-owned accounting firm located in Fishers, Indiana. We’re proud to work with our neighbors all throughout the greater Indianapolis area, and clients even come to us from out of state.
Our attention to detail and knack for problem-solving can help give you peace of mind. We want to ensure that all of the steps you’re taking for good tax planning pay off. If you have any questions about your current situation, don’t hesitate to reach out to our team. We’re always happy to schedule consultations with our current clients and new individuals, families, and business ow