As the saying goes, only death and taxes are unavoidable. Still, even though you have to pay taxes, you can change how much you pay by planning ahead and making wise choices. This type of strategic tax planning can set you up for a better tax situation, but you have to start planning now to make the most of your efforts. At AA Tax & Accounting, we can help you figure out your today and plan for the future. We are a full-service accounting team for individuals and businesses, giving you the expertise and peace of mind you need when handling your finances.
Managing money is often time-consuming and overwhelming. With us by your side, we create a customized plan that helps you reach your goals while also giving you the opportunity to focus on other areas of your life or business. Continue reading to learn what strategic steps you can take now to lower your tax bill and how our team can help.
Know Where You Stand With Your Taxes
The first step in good tax planning is to know what your tax situation is right now. Our team can provide a detailed financial analysis to help you understand where your money comes from, what deductions you can take, and what tax credits you might be eligible for. Our reports will provide you with options to change or improve your current situation to make the most of your finances.
Explore Retirement Accounts
Putting money into a retirement account is a smart financial move for the future, and it can also help you save money on taxes right away. Traditional IRA and 401(k) contributions are often tax-deductible, which lowers your taxed income for the year. These accounts also grow tax-free until you take the money out, which could help your savings grow faster.
In addition, if you have a standard IRA or 401(k), you might want to move some of the money into a Roth IRA. Even though you’ll have to pay taxes on the amount you changed, qualified withdrawals from a Roth IRA are tax-free in the future. This could give you a tax break in retirement. If you’re curious about your current retirement plan and if you have what you need, talk to our team.
Explore Tax-Friendly Investments
Some investments can save you more money on taxes than others. For example, long-term gains on assets are usually taxed at a lower rate than regular income. We can explore investments with you to help you reach your goals in a stable and healthy way while also minimizing your taxes.
Consider Additional Tax-Favored Accounts
There are more tax-advantaged accounts than just retirement accounts that can help you save on taxes. Health Savings Accounts (HSAs) offer three tax benefits:
- Contributions are tax-deductible.
- Growth is tax-free.
- Withdrawals for qualified medical costs are tax-free.
Flexible Spending Accounts (FSAs) can also help pay for medical and childcare costs before taxes are taken out.
Make the Most of Your Deductions
Our team can help determine which deductions you might be able to get, such as those for mortgage interest, property taxes, and donations to charity. We can also help you keep detailed records of your costs to ensure you report them correctly and get the most deductions possible. Whether you’re an individual or a business owner, deductions can significantly affect your financial health.
Ask Us About Tax-Loss Harvesting
If you have investments that have lost money, we can discuss your options, including tax-loss harvesting. This technique requires selling stocks at a loss to make up for capital gains and possibly lower your taxes. However, there are rules you must follow. Our team is current on all the regulations for this technique and more, helping you ensure you stay on the right side of your tax decisions.
Explore Financial Planning
Timing can be an essential part of tax planning. Depending on your finances, you may delay income or speed up spending to handle your taxable income for the year. At AA Tax & Accounting, we can develop a personalized plan that helps you make the most of your financial decisions. In addition, we support you year-round so you can make necessary changes when life throws a curveball.
Connect With Our Team For Strategic Tax Planning Options
While you might be able to do tax planning on your own, things can get complicated pretty quickly. This is where our team can help, giving you advice and strategies tailored to your unique financial situation. By being proactive now and intelligently handling your money, you can set yourself up for a better tax situation in 2024 and beyond.
At AA Tax & Accounting, we understand that everyone’s financial situation is different, so we offer customized plans, one-on-one attention, and various financial services to fit your needs. Contact our team today if you’re curious about your tax situation and how to improve it moving forward.
