It is never too soon for individuals or business owners to involve themselves in tax planning. In fact the earlier one begins the more prepared they will be and inevitably much less stressed once the tax deadline approaches.
Since everyone’s tax situation is different, instead of seeking advice from friends and family, it is highly recommended that you seek a professional financial advisor. Their expertise can guide you through such diverse areas as: child and marriage provisions, college funding, retirement planning, 401k’s, health insurance, life insurance, etc. As you can see tax planning involves much more than just taxes.
The following are five reasons why you should begin your tax planning today:
1) The Affordable Care Act. Regardless of your tax bracket the Affordable Care Act will not only affect your health insurance but also your taxes. Since it is the IRS that will be in charge of implementing these changes, you would be wise to consult a tax professional on all that’s involved. See IRS Affordable Care Act Tax Provisions for more info.
2) Estate Taxes. Estate, gift, and generation-skipping transfer tax laws are constantly changing. A new law went into affect January 2, 2013 and President Obama’s budget plan for 2014 includes even more changes. Year-end planning strategies include: annual exclusion gifts, lifetime gift exemptions, qualified charitable distributions, etc.
3) Alternative Minimum Tax (AMT). The AMT is an extra tax some people have to pay in addition to their regular income taxes. The exemption amounts change every year with a new inflation patch added January 1, 2013 through the American Tax Payer Relief Act of 2013. If your not sure about whether you owe any AMT consult a tax professional.
4) Individual Return Extensions. You filed for an extension of your federal tax returns, which are now due October 15, 2013. Do not wait until the last minute to take advantage of credits and deductions. Remember, it is not your patriotic duty to pay more taxes only what you rightfully owe.
5) Life Events. Life events include: buying a home, getting married, having a child, losing a spouse, starting a new business, and sending your kids to college. All of these events will affect your taxes.
At Palma Financial Services, Inc we are not only an Accountant/CPA firm but also a Professional Financial Specialist (PFS). We excel at guiding you through the financial landscape whether it be for business or family. Give us a call for a no-pressure interview. Our best referrals are our own customers, people just like you.