Ironically, the 2023 tax season starts today on January 23rd. Another year of putting the correct numbers in the correct boxes and filing by the correct due date. Those numbers however, have a greater emotional meaning to you the taxpayer. Numbers such as total income can drag your ego and pride into the mix when you have a banner year. It makes for an exciting yet stressful situation when you have a great year but did not plan accordingly. Will I owe taxes on the income or will I be able to minimize my tax burden are the questions revolving around in your head.
Did I make a tax plan ahead of time to address the increase in income?
When you are only putting the correct numbers in the correct boxes by the correct due date, you are selling yourself short and possibly leaving your hard earned dollars to the IRS. The goal is to bring those numbers to life, recognize them and celebrate them. What better way to accomplish this than by building a tax plan during the year so there are no surprises at tax time.
Feel free to contact us if you would like to partner with more than a tax professional that puts the right numbers in the right boxes by the right due date to build a lasting relationship to save your hard earned dollars and bring meaning to your numbers.
Here's to a less "taxing" filing season.
According to a recent study by Allianz Life Insurance, 54% of American workers have cut or stopped their retirement contributions to combat the rising prices of inflation. With inflation being at a 40-year high, many taxpayers are also taking early withdrawals from those same accounts to make ends meet.
Inflation can affect a great deal of decisions for taxpayers including when to make tax payments. If the IRS underpayment rate is lower than the US inflation rate, it may pay to wait until a later date with dollars that are worth considerably less. Those same tax dollars could be used for many other things including charity, real estate strategies or other retirement planning.
If you need any assistance with tax planning for inflation, feel free to give us a call.
#inflation #taxes #taxplanning #intheblack