We've got exciting news to share. Year-round tax planning is in! Where it was once an afterthought, tax planning is now all the rage. It seems that tough economic times have driven people to shift from a reactive approach to taxes to a proactive one. Now more taxpayers are thinking ahead and embracing year-round planning to reduce their overall tax burden well before deadlines close in.

With year-round tax planning, you can look forward instead of behind. You can time your income to lower the total amount of taxes you pay. By deferring income and waiting to invoice clients in the next tax year, or delaying depositing a work bonus, you may avoid being pushed into a higher tax bracket. Timing the sale of assets will allow you to choose the exact time and date to sell an investment, property, or business to avoid paying short-term capital gains. 

When it comes to financial matters, it’s always better to prevent a problem from happening rather than scrambling to solve it. If you wait until tax time to look for ways to reduce the impact of taxes on your financial efforts, your options may be limited. By the end of the year, your income is already established, and while you may still be able to donate to charity, contribute to an IRA, or purchase new equipment for your business, those last-minute moves may not be enough to soften the tax blow.

Alloy Wealth offers year-round tax planning services and strive to keep our clients in the lowest tax bracket possible every year. Schedule an appointment and we will look at your earned income and let you know what tax credits are available to you. We’ll also explain which taxes can be deferred, and which can be managed using tax-efficient investing. Call 800-689-3935 to schedule an appointment.