What Is Tax Planning?

What Is Tax Planning?

Taxes are known for being overly complicated and very confusing for the average person. In particular, if you run a small business, your taxes can be very overwhelming. Fortunately, help is available. Parker Financial Services is your small business tax planning expert. We offer comprehensive tax planning services to the people of Philadelphia. We can work with you to create a plan that will allow you to save as much money as possible. In today’s post, we will go in-depth and discuss everything you need to know about tax planning. Read on to learn more about tax planning and contact us today for tax planning services.

Tax Consultation

What Is Tax Planning?

Simply put, tax planning is the process of taking certain steps to make the amount of money you’ll owe the IRS upon completion of your taxes as small as possible. There are many ways to do this that are legal and a good tax planning service can help you utilize them. You cannot adjust your income by the time you are about to file your tax return because the year has already passed but by planning ahead and understanding what strategies you can use to minimize the amount of taxes owed, you can ensure you earn future tax breaks.

Man Doing Taxes

How Tax Planning Works

The first step to tax planning is to identify your AGI. This can be determined by completing an IRS Schedule 1. This form takes note of all your anticipated income sources as well as other wages and salaries that taxes are withheld from. It will then add up the adjusted income that is anticipated in the form of a tax deduction. If you enter these numbers as well as your W2 income on your 1040, you will get your taxable income. If you are ready to utilize some tax planning services at this point, you may be able to reduce this number into a lower tax bracket which will result in less money owed to the IRS or an increase in your tax refund. There are a lot of ways you can reduce your AGI. Contact a certified tax planning expert to learn more about your specific situation.

Couple Doing Taxes

Making Tax Planning Work For You

At the end of the day, tax planning means knowing what tax deductions and tax credits are available to you and ensuring you meet the requirements to claim them. There are a lot of detailed criteria you must meet and some of the requirements may change from year to year. This is why it is so important to work with a tax planning professional. They can help you demystify the process and get the most out of your tax planning services.

Couple Doing Taxes

Work With Parker Financial Services

Parker Financial Services specializes in small business tax planning. If you run a small business your taxes are complicated enough. Reach out to a professional to get the most out of your tax planning services.

When you need tax planning services in Philadelphia, there’s no one better to turn to than Parker Financial Services. We are here to help small businesses make the most of their taxes and get the most money back possible. Contact us today to get started!