![]() |
|
![]() |
|
![]() |
|
![]() |
Strategic planning throughout the year results in a minimal tax balance. The objective of planning your tax payables is not to prevent paying taxes, it is to pay no more than your fair share of taxes, and keep your money where it earns you the most.
If you aren't aware of it yet, Uncle Sam pays no interest. If he deducts your tax payment monthly or quarterly, and takes more than his fair share, he doesn't give you anything back for the privilege of using your hard earned money. By the same token, if you don't pay in enough, he charges you a penalty and interest.
As a W-2 wage earner, if you are over paying your tax debt, you may be considering it a 'forced savings plan', but you gain nothing, using that particular plan. By putting the same amount in savings every year, earning interest on the balance, and continuing to regularly invest in your savings fund, you may be able to utilize the retirement savings plan reducing your tax debt significantly. With the advice of a competent tax consultant, your savings can become an investment with a tax reduction at the end of the year.
As a business owner paying tax quarterly, over paying your taxes can cost you considerably more. Your tax debt may actually be borrowed money, on a line of credit from the bank where you pay interest for the use of the money. If tax planning were part of your business expenses, you get to deduct the amount paid to the tax consultant from your business, you don't have to pay interest on more than you need to pay in (if using a line of credit to pay taxes), and any saved money can be placed in a retirement fund or savings plan to draw interest for you. Once again, a tax consultant can save you money.
These are just a couple of ways you can save money by hiring a tax consultant. So, who is your Tax Deity? Your tax consultant or Uncle Sam?
Copyright © 2005 ? Jan Verhoeff
Tax planning is an important part of setting up your business, working your job, or living in a world where taxes are a fact of life. Consider saving money on your taxes this year, by planning well, and paying yourself first. Visit eBiz Brand Performance for more information.
Just image, you are a small manufacturing company, business has... Read More
As a small business owner or self-employed person, one of... Read More
With gas prices at an all time high before Hurricane... Read More
Someone once remarked, "Next to being shot at and missed,... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
No one likes paying tax. Everyone understands that tax is... Read More
Deduction of Refinance PointsAny points that you pay in the... Read More
Hit a big one? With more and more gambling establishments,... Read More
Adding Your First Additional Stream of IncomeMost new wealth builders... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
Choosing the right tax preparer for your business is a... Read More
It's a major fear for most Americans: A notice from... Read More
In trying to comply with tax laws for your e-business,... Read More
Import duties continue to be significant elements in the cost... Read More
Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More
"Settle for Pennies on the Dollar! IRS debts settled for... Read More
Media reporting of a new EU savings tax directive has... Read More
As an employer, you must pay employment taxes if you... Read More
If you paid someone to care for a child so... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Many taxpayers are confused about how long they should keep... Read More
In elementary school, kids come up with creative excuses why... Read More
As a small business owner, it's wise to familiarize yourself... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
Does this scene sound familiar? It's April 7. You haven't... Read More
In the latest Star Wars episode, the evil empire executes... Read More
Deduction of Refinance PointsAny points that you pay in the... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
Ever wish that, as a business owner, you knew exactly... Read More
Whether helping the kids with a down payment on their... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
Donating your used car to charity is a win-win situation;... Read More
Small Businesses Filing Amended Federal Tax Returns to... Read More
Once a year Canadian taxpayers are required, by law, to... Read More
As teachers and students head back to school following a... Read More
With gas prices at an all time high before Hurricane... Read More
Beware of advertisements that claim to settle tax debts for... Read More
Practically every small business has receivables that it cannot obtain... Read More
Import duties continue to be significant elements in the cost... Read More
Own residential rental properties? This article discusses how income from... Read More
Someone once said, 'the best way to calculate your taxes... Read More
IRS Tax forms can be confusing.Am I a 1099 or... Read More
How Home-Based Businesses Can Avoid Giving Uncle Sam... Read More
The means and types of businesses have transformed with advent... Read More
One way to maximize your business profits is by reducing... Read More
Most people look forward to getting their tax return, but... Read More
April 15 - The most dreaded day of the year... Read More
As a gentleman was leaving my class recently, he wanted... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
If your identity is stolen, your finances can quickly become... Read More
Tax Tax |