Wanna Save Money on Your Taxes Now?

October 17th has come and gone! That was the extension deadline to file your personal taxes for 2021. Hopefully it was a smooth process and most importantly, hopefully there were no big surprises😫!

NO SURPRISES! That is the goal! If you do a little planning and meet with your tax preparer BEFORE the end of the year, they can actually plan and strategize with you to minimize your taxes, rather than just do damage control in April. November is the ideal time to meet with your team and make moves to reduce your taxes. Help them help you! Tax preparers love to help save $$ at tax time but there is little they can do if you wait until after the year has closed.

Here are some things you can do NOW to save cash in April:

1. Set a meeting with your tax preparer for early November.
   Get on their calendar right away so you have time to execute the plan (all of my successful clients do this!) Your tax person may want you to open or fund a retirement account, delay or accelerate your income and/or expenses (if you are self-employed you have a lot of control over the timing of your income and expenses), or even form/change your tax entity. Remember, if you have an S-Corp you have to take a W2 salary if you made a profit! These things take time so don’t wait until the last minute - we’re shooting for a stress-free year-end!
   

2. Prepare for the meeting. 
   Knowing your numbers and presenting them in a clear manner is crucial to the success of this meeting. Your tax strategy depends on the quality of data you give your tax preparer. Take the next couple of weeks to get this together. If you use a system such as QuickBooks and have kept it up, this is literally a 3-minute task. Just export and send your Profit and Loss Statement for this year so far (and any other reports they may ask for), and then estimate how much additional you will earn/spend through 12/31/2022. They will then use your actual and projected income and expenses to prepare a strategy and estimate your taxes.
   

3. Revisit your goals and ask questions.  
   This is also a good time to be an active participant in your financial plan. Be clear about your goals, what you want from your business, now and in the future. Your tax preparer may be able to suggest money-saving changes in your entity structure and other areas if they know what you want. Ultimately, this is about being the CEO of your own life. Your team works for YOU, not the other way around. If you are not getting the education and support you need to feel comfortable and empowered, it’s time to get a new team😉.
   

I hope this helps you finish the year strong! By following these tips you can cruise into tax time next year with no fear, no stress, and no ugly surprises. It’s totally possible and it’s priceless!