IS TAX SEASON REALLY OVER?
You’ve finished your taxes. Well done! Now, what are you doing to improve your tax situation for next year? It’s never too early to start planning for next year’s taxes, and the sooner you start planning, the better the outcome may be. The first step in tax planning, especially when it comes to business taxes, is to look for opportunities to keep more money in your pocket. Understand Your Credits and Deductions There are several different credits available both to individuals and to businesses. You are probably familiar with several of the individual credits like the child tax credit. Well, did you know that businesses have credits for going green, accommodating disabled employees, serving new markets, and other targeted credits? While it is less likely for individuals to itemize deduction on their federal tax return since the new tax laws went into effect, many states still give credits or deductions for expenses such as property taxes. So keep track! However, business owners still need to keep good records so they (and their accountants) don’t miss deductible expenses. Did you know that annual fees on your business credit card is deductible? These are just a few of
PUTTING YOU IN CONTROL ...
many possible options, but to truly make the most of your tax return, you’ll need to do more than go down a checklist or buy new office equipment for a tax write- off. Understanding your business credits and deductions can help you take your business to the next level. Maximize Your Retirement Plan Contributions You may have seen and heard this before, but this is usually the easiest way for people to save. Small-business owners often overlook this opportunity and default to an IRA. Yet, they have several other options that will allow them to put more money away in retirement savings. Make certain you are contributing to the right plan and maximizing your opportunities. Don’t Overlook Additional Long-Term Tax Planning There are plenty of ways to defer paying taxes and keep your tax rate at a lower level, as suggested above in the previous section, but is that really the best strategy for you? You might feel like it’s best to defer your taxes now, but what happens come retirement? This is the difference between short-term and long-term tax planning. Required minimum distribution (RMDs) in retirement can easily bump you into a higher tax bracket throughout your retirement. If this happens, you might find yourself wishing you’d paid the taxes already or had looked at tax-free growth options. Strong long-term tax planning can help turn unfortunate events into tax opportunities. For example, if you lose your job or your business does very poorly one year, this could be a very good time to roll your 401(k) or IRA into a Roth IRA. You’ll pay taxes on the account now, but in the future, when you’re in a higher tax bracket, you’ll be able to take those distributions tax free. Taxes are complicated and everyone’s situation is different. When planning for the future, work with someone who can help you achieve your life goals and your business goals. Get a jump on your tax planning by calling our office today!
Andrew Saul, commissioner of Social Security, and the agency continue raising public awareness about telephone impersonation schemes during the Office of the Inspector General’s (OIG) national “Slam the Scam” Day on March 5. Social Security and OIG have made concerted efforts to educate the public about these scams — in which fraudulent callers mislead victims into making cash or gift card payments to avoid arrest for purported Social Security number problems. As Commissioner Saul testified to Congress, the agency has taken swift actions, including helping OIG create a dedicated online reporting tool at oig.ssa.gov, providing people who call the agency with updated information on the scams and how to report them, increasing employee and public outreach and education, and establishing a Social Security/OIG workgroup to maximize resources and ensure a cohesive response.
For more information, please visit https://www.ssa.gov/news/press/releases.
DLJ Wealth Services, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Advisory services are provided by DLJ Wealth Services, LLC. DLJ Wealth Services, LLC is a registered investment advisor. Tax advice is provided through DLJ Tax Services, LLC, a separate legal entity, but both companies are owned by Deb Matz.
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