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?
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.
Mothers Day Shopping Ideas Do you know a Mom who needs to be thanked for the tireless effort she makes every day to her family? This Mother's Day, make Mom feel extra special! By follow...
Leadership: Stoking The Success Train Successful Leaders have certain qualities and strategies that keep them moving forward from one success to another. These qualities and strategies are not inhe...
Mobile Car Wash Market Opportunities in California The current lack of industry leaders represents an exceptional opportunity for a large and organized mobile car wash company to achieve regional domination and ...
Tips for Effective Weight Loss With a worldwide obesity epidemic upon us more and more people are desperately trying to lose weight. But how safe and effective is your diet? Here are a few ti...
Search Engines Rank Blogs Higher - Here is the Proof! Nearly a year ago, I had started a business blog about a fictitious 'paper' startup company and named it "BusinessWorks Inc - A Dotcom in making". In this blog,...
Wholesale Buyers Versus Retail Customers Are wholesale buyers and retail customers really different? Frankly, there are two answers to this question: yes and no. Yes, because they are different from th...
Creating Positive Environments, Part 1: Using Art One of our most active senses is sight. What we see can affect our outlook and attitude by how its counterpart, our brain, perceives visual information that it...
How to Lose Weight On A Gluten Free Diet Do you suffer from Celiac Disease or gluten intolerance?
Are you over weight?
Do you want to lose weight on a gluten-free diet?
Do you want to feel feel fit on...
Top 10 Reasons to Use a Blog to Publish Your Ezine Blogs are the hottest thing going these days when it comes to marketing on the Internet. A blog is a delivery medium. Here are 10 reasons why you should deliver...
The Need for Biblically Minded Engineers There is a great need in the world today for engineers who think and work from a Christian worldview. These engineers are needed to design, prototype, develop, ...
Crossing the Chesapeake Bay Bridge Tunnel with an RV New experiences make me nervous, and I assume that holds true for most of us. Towing our fifth wheel through a major tunnel for the first time was such an exper...
An Introduction To eBay Consignment Selling on consignment allows you to learn about antiques and collectibles without risking your own money. When you sell on consignment, you provide a service t...
Free Tips On How To Lose Weight Many people in life, especially in the western world are looking at ways to lose weight. In this article I describe about how I have had an ongoing struggle wit...
Print this page