Date: March 30, 2022
Estimated Taxes – How to Avoid the Confusion
As a business owner, the thought of tax season usually brings feelings of stress and frustration. The thought of gathering all your documents together and completing your tax return just to learn you owe money to the IRS can be a major frustration for many taxpayers. What can you do to plan ahead and not receive a surprise bill?
If you make your quarterly estimated tax payments each quarter, you can avoid the annoying penalties and interest they like to charge to well-meaning taxpayers who just aren’t sure what they owe or how much they should pay. The tax code is purposely confusing, and estimated taxes are a major source of contention for many business owners. Some of the clients we now work with used to feel like they had to guess the amount they should pay each quarter, and worried that if they got it wrong, or made an honest mistake, they’d get slapped with fines and penalties. They weren’t wrong, they just didn’t have someone in their corner looking out for them and helping them make better choices each month so the amount they had to pay each quarter was already minimized to be as low as possible.
The best way to avoid owing on your taxes is to have a plan in place, all year long. A Tax Plan will help ensure that you are not overpaying and that you are taking advantage of the tax-saving provisions that exist for taxpayers just like you. Our tax planning process begins with a professional reviewing your tax situation and finding opportunities to utilize throughout the year that can save you thousands of dollars and reduce or even eliminate your tax bill altogether. You will get a customized plan for your business, and personal life and once it is implemented, you can rest easy knowing that you are not only lowering your tax obligation but investing in the future of your business and personal life.
We believe that every taxpayer should have the opportunity to understand their rights and be able to use the resources available to them so that they are not paying more tax than they have to. Not only does this help prepare for the future, but it’s also a key step to growing your business and crushing your financial goals. If you would like to talk to a professional to see potential areas where you might be overpaying, click here to speak with one of our tax strategists.