As a leader in tax service Kissimmee, we know that It can be disheartening to see your paycheck get reduced by taxes. Often, tax liability comes as a shock where many taxpayers will be required to borrow extra funds to pay it off. While a tax accountant, that offers professional tax services Kissimmee, can tell you to plan your financials in a better way, he might not inform you about the difference between tax planning and financial planning. Where financial planning is aimed at keeping you afloat and loan-free, tax planning can help the incumbent’s tax liability and reduce future tax burden. Here is an explanation about the differences between the two.
Tax Service Kissimmee – Tax planning
Tax planning includes an analysis of your current financial situation while keeping in mind future tax liability that might incur. Tax planning is, simply put, framing your financial framework from a tax perspective. Its purpose is to realign financial goals in such a manner that they are accomplished in the most tax-efficient manner. Other elements of a financial plan are integrated so that tax goals which lead to minimum tax liability can be achieved.
Tax service Kissimmee experts agree that some of the aspects of tax planning include examining the risk, alignment of financial goals, having tax saving investments, and investing in a tax scheme.
Tax planning is an overall part of your financial planning and should not be seen as a separate function. Tax planning helps your financial planning gain a broader perspective and encompasses the compliance goals that are legally required. Here are a few ways through which you can minimize your tax liability.
- Tax saving investments:
- Salary structure:
- Superannuation scheme:
As tax service Kissimmee professionals we know that certain investment schemes and securities are not taxable by the IRS. Investing in such securities and derivates can reduce your tax liability. These schemes are listed under sections 80C. Section 80D also specifies housing loan interest that can be availed for tax saving purposes.
A tax saving investment scheme may change every year and therefore requires constant revision. Tax planning usually differs from a person’s financial situation to another.
Employers can also reduce their tax liability by structuring the salary of their employees. Changing pay day and providing more of non-cash benefits can greatly impact the tax liability. There are certain allowances in tax structures that vary according to the structure of salaries. Inform your tax accountant Kissimmee about tax structures to reduce your tax burden.
If any superannuation schemes are provided to the employees, it can also reduce the tax liability. However, there are certain aspects of such schemes that will determine whether you are eligible to the deductions or not. In such case, consult your tax account as he will be able to determine the eligibility of the reductions.
Employee Stock Option Plan is also an investment scheme where employees are provided with stock options or ownership plan at a subsidized rate. However there is a certain period known as lock-in period after which you can sell your shares.
Whether you are filing your tax return Kissimmee as an individual or as a business owner, a comprehensive tax plan, by a tax service Kissimmee professional, can help you reduce the tax liability.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.