![\"Memphis](\"http:\/\/www.rikardneal.com\/blog\/wp-content\/uploads\/2018\/03\/ThinkstockPhotos-497094878-300x200.jpg\")
Your income tax obligation needs to be on your mind year-round. It may feel like we just put the last tax season behind us, but it’s always good to think of ways to get a jump on your taxes. If you haven\u2019t started thinking about how to minimize your income tax obligation for this year, there\u2019s still time.<\/p>\n
Whether you\u2019re a small business or an individual taxpayer, year-round tax planning is more than just a way to make tax preparation an easier, faster process. By keeping taxes in mind as you go through every 12-month period, you\u2019ll be able to see where you might take specific actions early that will have an impact on what you end up owing. Make it a habit, and you\u2019ll find that it just comes naturally to consider the tax implications of purchase and sales decisions.<\/p>\n
Effective tax planning requires more than just saving receipts and organizing tax-related documents in physical or digital file folders \u2013 though that\u2019s a good start. Create a system in early January that you can maintain throughout the year (of course, a lot of your information will be stored in your accounting or personal finance application, if you use one). But you should be saving statements, receipts, sales forms \u2013 anything related to your income and expenses that will eventually feed into IRS forms or schedules.<\/p>\n
Businesses: How do you\u2014and your employees, if you have them\u2014keep track of daily expenses? You may have forms like purchase orders and bills for the big ones, but you probably buy things on occasion that are just documented by paper receipts. How do you categorize and organize these so you won\u2019t miss any when it\u2019s time to complete a Schedule C? Is there a better way?<\/p>\n
Do any of your employees make trips on behalf of your business? You really should consider subscribing to an online service that automates the process of creating and approving expense reports. If you\u2019re not aware of these options, ask us.<\/p>\n
Individuals and businesses file some of the same forms and schedules, but some, of course, are different. Your previous years\u2019 tax returns can be good resources for you. Refer to them occasionally as you go through the year and do some comparing, especially if you must pay quarterly estimated taxes. You may not remember from year to year what\u2019s deductible and what\u2019s not. Revisiting your returns will jog your memory and remind you.<\/p>\n
Are you having a good year? You\u2019ll have an idea of how your financial health is if you\u2019re keeping up with income and expenses. You don\u2019t have to wait until the end of the year to do any charitable giving that you\u2019re going to do (although it\u2019s usually best to hold off until the fourth quarter).<\/p>\n
This is so important for individual taxpayers. Did you get married or divorced, or have a child? Did you move? Buy or sell a home? Get a raise or, conversely, lose regular income for some reason? Did you have educational expenses? All these life events\u2014and more\u2014can change your income tax obligation.<\/p>\n
Businesses often experience major changes, too, and your financial state at the end of the year is way harder to predict than it is for an individual with W-2 income. Stay on top of the impact of deviations in income and expenses created by events like the introduction of new products (or the loss of existing ones), personnel fluctuations, and major acquisitions.<\/p>\n
Tax planning should be an element of your overall financial planning. If you have a business or household budget, you\u2019re way ahead of the game. You can compare your actual income and expenses every month to those you built into your budget. A budget can be a tremendous tool as you plan for the current year\u2019s taxes. If you\u2019ve never created one, or if you\u2019ve never stuck to one successfully, we can help you with this.<\/p>\n
We\u2019d also be happy to work with you throughout the year on taxes. We can get you set up with financial software if you\u2019re not already using it and advise you on ways to work toward minimizing your next year’s tax obligation now with our robust Memphis Tax Services<\/a>. Call us today at 901-685-9411.<\/p>\n","protected":false},"excerpt":{"rendered":" Your income tax obligation needs to be on your mind year-round. It may feel like we just put the last tax season behind us, but it’s always good to think of ways to get a jump on your taxes. If you haven\u2019t started thinking about how to minimize your income tax obligation for this year, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-58","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business-tax","7":"entry"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/58","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=58"}],"version-history":[{"count":2,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/58\/revisions"}],"predecessor-version":[{"id":61,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/58\/revisions\/61"}],"wp:attachment":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=58"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=58"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=58"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}