If tax planning is not part of your ongoing financial strategy, it should be. Consider these 11 tax planning mistakes individuals and even business owners make.
1. Neglect to review income and expenses each month.
2. Do not meet with a CPA or tax advisor periodically to analyze how to maximize provisions, credits, and deductions that you are entitled to take.
3. Failure to report substantial amounts of income, interest, dividends, distributions from retirement, educational savings and/or investments account, gambling winnings, unemployment income or self-employment work.
4. Overstatement of travel, meals & entertainment, business mileage expenses or large deductions for charitable contributions without proper documentation.
5. Keep inadequate records or a discrepancy between amounts reported on a return and amounts reported on its financial statements.
6. Not being financially prepared for when taxes are due.
7. Not claiming any available tax credits.
8. Lack any budgeting or goal setting for personal and business income over the short-term and/or long-term.
9. Missing quarterly estimated tax payments.
10. Not maximizing retirement account contributions.
Is tax planning a last minute job for you? Are your budget and finances a mess because of last minute tax filings? Properly planning for taxes makes great business sense and it can help you save money, take advantage of tax credit and reduce penalties & interest down the road. Let’s talk!