The tax savings are based on individual circumstances. Because everyone’s tax situation is unique, there is no definitive answer to potential tax savings. Some people can take advantage of certain credits, while others can take certain deductions that will not work for others.
We can, however, make general estimations. The more a person earns and the more investments they have, the higher their potential to find more savings. Those who earn less and have fewer investments or assets do not owe as much in taxes because they generally have a less diverse financial portfolio.
A business owner who makes $800,000 and has a variety of investments could likely find more tax savings with a good tax plan than a W-2 employee making $40,000 with few assets.
Generally, when it comes to tax planning, the potential return on investment can be significant. On average, you can expect a return of 2 to 3 times the amount you put into tax planning. For every dollar you invest in tax planning, you can expect to save 2 to 3 dollars on your taxes; it can add significant savings over time and positively impact your overall financial well-being. It’s important to consult with a tax professional to determine the potential return on investment for your specific situation.