Now, more than ever, there is a much greater emphasis on tax planning. Preparing the actual tax returns is just one aspect of the tax planning and preparation process. With tax legislation changes occurring more frequently and the development of the shale industry locally, taxpayers should be consulting their CPA more often.
Did you receive or expect to receive additional income during the year? Your CPA will help you understand the tax consequences of this additional income and discuss ways to save taxes before the end of the year. CPAs work on taxes year-round and the best way to save taxes and understand your tax situation is to consult your CPA before and after major changes occur in your financial situation.
Paying estimated taxes is one aspect of your year round tax planning. Estimated tax is a method of paying tax on income that is not subject to withholding tax. This can include income from self-employment, rent, investment income, gas and oil income and other sources.
Paying estimated taxes at the required due dates in April, June, September and January can help reduce penalties and interest charged when not paying on time or in full. The IRS has no "I didn't know" clause, nor is it very forgiving when people don't pay their taxes on time, even if they were unaware they had to. If you make money where taxes are not withheld, it's very important to understand under what scenarios you need to pay estimated quarterly taxes.
Planning is the key to successfully and legally reducing your tax liability. I can’t tell you the number of times I have told a client I wished they would have called me BEFORE they did something so they were better informed before they made the decisions that affected their taxes.
The peace of mind and confidence that comes from knowing that Yourkovich & Associates is on your team is an invaluable asset. Contact us for your estimated tax and tax planning needs.