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Tax Planning

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Get the Most Out of Your Taxes with Expert Tax Planning

Taxes are a responsibility shared by every American citizen. For most, this is a once-a-year concern, but for many, such as high net-worth individuals and small businesses, it’s a year-round process that requires strategic planning and constant attention.

At Padgett Business Services of Farmington , we strive to help people develop the best plan of action for their unique situation to maximize their tax efficiency and save big on their tax bill. Our team has the knowledge and experience to help make sure that what you pay the IRS is what you actually owe.

The Benefits of Strategic Tax Planning

Tax planning isn’t just about saving money. It’s about making sure you’re not paying more than you should be on your taxes. While the IRS will refund overpayments, they operate off of what the paperwork tells them, and if you don’t put the work in to keep your tax liability as low as possible, your return won’t reflect that.

There are also tertiary benefits to tax planning, such as the investments and savings you accrue in the process.

Deferred Income

One of the most reliable ways to lower your tax liability is to reduce your total taxable income. This may sound counterintuitive, but by deferring your income through retirement plans such as IRAs and 401(k)s, or through monetary gifts to family members, you can effectively reduce your total income. This not only lowers your tax burden, but can even put your income in a lower tax bracket, increasing your savings.

Deductions

Deductions are a tax saving method available to all taxpaying citizens. While many people take the standard deduction, it only reduces your tax liability by a fixed amount, though there is no burden of proof.

Itemized deductions have a much higher cap, allowing you to claim a wide variety of expenses. However, receipts or other evidence are required alongside these claims.

Credits

Credits are similar to deductions, but rather than lowering your liability, credits are deducted directly from your tax bill. There are more than 20 tax credits available to taxpayers, including:

  • Earned Income Tax Credit
  • Child & Dependent Care Credit
  • Adoption Credit

Padgett Business Services of Farmington helps you identify which opportunities will benefit you most and include them in your tax strategy.

Professional Tax Planning Services in Farmington

The tax professionals at Padgett Business Services of Farmington have knowledge and experience you need to minimize your tax burden efficiently. Contact our Farmington firm today to schedule a consultation with our expert Enrolled Agent and start saving today!

If you'd like to learn more, please contact us.

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