Tax Planning: Few Things Beginners Should Know
It is no secret that tax planning is inherently challenging. The egregious and borderline absurd complexities of the taxation system require expert analysis. It is easy to make a mistake if you do your taxes alone, especially if you are a business owner.
Whether you have struggled with tax planning and filing in the past or you are a beginner, you need the guidance of a tax planning lawyer in Monroe, LA. Read on to learn about the basics of tax planning.
Know and Understand Tax Brackets
Tax planning requires an understanding of tax brackets.
The more money you make, the more taxes you will pay due to the progressive nature of our country’s taxation system. Thus, it’s not surprising that business owners tend to be in higher tax brackets than employees.
Generally, tax brackets are between 10% and slightly less than 40%. At Niswanger Law, our tax planning attorneys can help determine your correct tax bracket before tax payment.
Get Assistance With Tax Documents and Records
Earnings, paperwork, and other business details can make the difference between triggering an audit and staying below the government’s radar. Some tax documents that must be meticulously organized and safely stored include the following:
- W-2 forms
- Bank statements
- 1099 forms
- Statements from investment brokers
- Previous tax returns
Tap into the expertise of our tax planning attorneys, and we’ll help you prepare for tax season, so you get peace of mind. Maintain and organize your records with our assistance. You’ll sleep soundly knowing you have the necessary documentation to justify your annual tax payment. Doing so also helps in the defense against a potential audit.
Consider Tax Mitigation and Other Important Planning Idiosyncrasies
There is a common misconception that it is difficult to mitigate business or personal tax burden because of the complex taxation processes and rules. However, with the guidance of an experienced tax lawyer, you can significantly reduce your tax debt to Uncle Sam.
From tax credits to deductions and more, there are plenty of avenues to explore to reduce your tax burden. Tax credits provide a dollar-for-dollar tax bill reduction. Tax deductions (including some unanticipated expenses incurred) can be decreased from your taxable income, ultimately reducing the taxed income.
Need More Info About Tax Planning? Niswanger Law is a Call Away
If you own or manage a business, you will surely benefit from our tax planning services in Monore, LA. We’ll help you learn about your taxes, avoid common tax planning mistakes, and assist with your tax records. We’ll also help with your tax mitigations within the confines of the law, like itemizing your tax return versus standard deduction, IRA investing for tax purposes, and tweaking the W-4.