Tax planning is always difficult. There is nothing simple about the tax code in the United States, with its myriad of deductions, rules and ever-changing limits, thresholds and arbitrary caps; the tax code is 70,000+ pages in all. It has been this way for so long that even the long-running jokes about taxes are considered cliché at this point.
And this is just for people who are employed. If you own a business, things become even more complicated. The more employees you have, the more complicated tax planning can be. While it’s true that tax software has made things easier and that digital technology has made record keeping more efficient, how do you know if your software caught all of your deductions? What if something happens to the servers that hold your information? What if those servers are hacked and your information is stolen?
You Need Someone with Tax Experience for Help with Tax Planning
Computers, software and the Internet are all amazing things that can be utilized to make our lives easier. But there are still times when you want another human being with specific experience to oversee a difficult project or event in your life. After all, with tax codes always changing, you are going to want someone who keeps up with these things on a daily basis.
Otherwise, how will you know which deductions to utilize? Will deferring some income to next year save you money or will it just kick you into a higher tax bracket that year and end up costing you more in the long run? Should you accelerate some of your expenses into this year, taking advantage of the deductions that come with that, or should you wait? If you are planning on making a charitable donation (which is tax deductible) when should you do that?
What Should You Do?
While it’s obvious that someone experienced with taxes can be a great asset, they can’t do everything for you. This is especially true if you run a business. It is imperative that you keep track of all your income and expenses; without this information, even the most experienced tax person will find it impossible to maximize your tax planning.
You also need to know your filing dates, so you know when you need to meet with a tax expert to go over your filing. As long as you have all the information you need, they should be able to advise you from there.
What About Tax Reform?
There is currently a lot of talk about tax reform in Washington D.C. What could this mean for you or your business? What happens if a bill passes?
For this reason and more you should contact the experienced tax professionals at Doane and Doane, P.A. to talk about your tax situation or you can call 561-656-0200 for a free consultation.