Tax preparation and planning – Blades Incoporated

Tax planning:

Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success. Tax planning is important for both small and large businesses because it can help them to achieve their business goals. When you have a tax plan as the owner of a business, you can lower the amount of taxable income, gain more control of when taxes are paid, and also reduce the rate of tax.

Tax planning is an integral part of every individual’s financial growth story. Since paying taxes is mandatory for every individual falling under the purview of the IT bracket, why not streamline your tax payments in ways that it offers substantial returns over a period of time with minimum risk? In addition, effective planning also reduces your tax liability drastically.

The different mindset under which tax planning can be broadly classified are:

Purposive tax planning:

Planning taxes with a particular objective in mind

Permissive tax planning:

Tax planning that is under the framework of law

Long-range and Short-range tax planning:

Planning done at the start and end of a fiscal year respectively

Objective:

Tax planning is a pivotal part of financial planning. Through effective tax planning, all elements of the financial plan fall in place in the most efficient manner. This results in channelization of taxable income to different investment avenues thus relieving the individual of tax liability. The investment amount post-lock-in can be utilized for fulfilling needs and act as the retirement corpus in most cases. All in all, the objective of tax planning is to reduce tax liability and attain economic stability.

Tax Planning Strategies:

Countless tax planning strategies are available to small business owners. Some are aimed at the owner’s individual tax situation and some at the business itself, but regardless of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomplish one or more of these often overlapping goals:

Reducing the amount of taxable income
Lowering your tax rate
Controlling the time when the tax must be paid
Claiming any available tax credits
Controlling the effects of the Alternative Minimum Tax
Avoiding the most common tax planning mistakes

In order to plan effectively, you’ll need to estimate your personal and business income for the next few years. This is necessary because many tax planning strategies will save tax dollars at one income level, but will create a larger tax bill at other income levels. You will want to avoid having the “right” tax plan made “wrong” by erroneous income projections. Once you know what your approximate income will be, you can take the next step: estimating your tax bracket.

The effort to come up with crystal-ball estimates may be difficult and by its very nature will be inexact. On the other hand, you should already be projecting your sales revenues, income, and cash flow for general business planning purposes. The better your estimates are, the better the odds that your tax planning efforts will succeed

Tax preparation:

Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. A tax preparer is a professional that is qualified to calculate, file, and sign income tax returns on behalf of individuals and businesses. They can also represent the taxpayer during IRS examinations of tax returns. … More than half of taxpayers hire a professional tax preparer when it’s time to file a tax return.

There are four general types of tax preparers: certified public accountants, enrolled agents, tax attorneys, and non-credentialed preparers.

Certified public accountant (CPA)

maintaining financial records,
examining financial statements,
providing auditing services, and.
preparing tax returns.

Objective:

Just as taxpayers trust you to ensure they aren’t audited by the IRS and that they pay as few taxes as legally possible, hiring managers trust you to be able to adequately show you’re qualified for a position as a tax preparer. Your resume objective can either-damage or help your chances of continuing your career and becoming a better tax preparer, so be sure you spend just as much time on it as you do your actual resume. Show you can prepare yourself for success just as well as you can prepare taxes.

Tax Software:

The Best Tax Softwarefor 2020
Intuit TurboTax Deluxe 2020 (Tax Year 2019)
H&R Block Deluxe 2020 (Tax Year 2019)
Tax Act Deluxe+ 2020 (Tax Year 2019)
Tax Slayer Classic 2020 (Tax Year 2019)
Credit Karma Tax 2020 (2019 Tax Year)
Free Tax USA Deluxe 2020 (Tax Year 2019)
Jackson Hewitt Online Premier 2020 (Tax Year 2019)

Preparing your own income tax return

Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government’s General Accounting Office, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparer.

Whether we like it or not, today’s tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there’s no substitute for the assistance of an experienced tax professional.

TAX PREPARATION AND PLANNING

Preparing and planning for taxes is often a stressful and complicated endeavor for most people.

Preparing your own tax return can be extremely difficult with today’s complex tax code and may often leave you with more questions than answers.

These days, the majority of people and small businesses use a professional tax preparer to assist with the preparation of taxes. Even if you are just filing a simple return, the rules may change from year to year and it is easy to overlook these changes and submit an incorrect return. By doing your taxes yourself, you may also end up overlooking deductions and credits.

At K.A.B. Bookkeeping And Tax Service Inc, we have the expertise that is needed to help you file your returns while also helping you to minimize your tax liability with careful planning.

Tax Preparation in Titusville, FL

Our tax preparation services include:

Individual Tax Preparation
Business Tax Return Preparation
Gift & Estate Tax Return Preparation
Partnership & Corporate Tax Preparation
Estate and Succession Planning
Out-of-State Returns
Business Start-Ups

K.A.B. Bookkeeping And Tax Service Inc can also help with our extensive tax planning services.

Tax Planning & Education:

Tax planning is essential to help you successfully and legally reduce your tax liabilities. In addition to making sure that your business is tax compliant, we also can suggest tax-saving strategies that will maximize your after-tax income.

We offer tax and education planning to assist start-ups, as well as, established businesses. We will provide you with a complete list of the most commonly overlooked deductions so that you can limit your tax liability for the following year.

We’ll also assist you with tax planning by:

helping you to defer income so that you can save money now and pay less taxes in the future
lower taxes on your income so that you can keep more of your earnings
lower taxes on your estate and gifts so that the beneficiaries can keep more of what you have given
lower-taxes on investments and retirement distributions so that you can maintain your lifestyle and much more.

If you own a small business in Titusville or need help with individual taxes, working with a professional tax planning service can help save you more money. K.A.B. Bookkeeping And Tax Service Inc offer the expertise that you need to save on your taxes at affordable prices.

Tax Resources:

Here are some links to help you learn more about FL taxes:

FL Department of Taxation
Tax Information for Individuals – Internal Revenue Service
Business Taxes