The biggest mistake many people make is to wait until April to concern themselves with their taxes. Throughout the year there are many financial decisions that can be made that could significantly impact the amount of taxes owed. Considerations include: tax credits, retirement plan contributions, and gifting. Tax implications are easy to miss or miscalculate without the organization and foresight that tax planning provides.
Often tax rules will change as they seem to do nearly every year. Because these changes usually affect such important things as exclusion amounts, credit eligibility, retirement plan contribution limits, and the tax rates themselves, they will almost certainly affect spending, saving, investment and borrowing decisions made throughout the year.
Personal financial planning is as important to individuals with modest incomes as it is to wealthy individuals who may have complicated tax situations. Just a few of the many possibilities that signal the need for financial planning are:
- You want to plan for your children's education
- You are concerned about your retirement income
- You are anticipating an inheritance
- You own a business
- Your credit card debt is excessive
- Your family income is dependent on one wage earner
- You have property in more than one state
GMG CPA provides year round assistance in tax planning. We know that life is unpredictable and are here to help along the way, not just at return time. You can count on us.