Tax Planning Services Offered in Chicago and Suburbs
What Is Tax Planning and Why Do You Need It?
Tax planning is the systematic analysis of available tax options with the goal of minimizing your tax liability in current and future tax periods.
Legitimate tax options involve one or more aspects of the tax code, such as: filing status, tax deductions, credits, and exemptions.
Here are some factors that influence tax planning:
Tax Free Income
Reducing AGI (Adjusted Gross Income) will have a significant reduction in tax payment.
You can lower your taxable income by investing in a retirement plan. There are several retirement plans to choose from such as a Traditional or Roth IRA, 401(K), SEP or SIMPLE IRA
Tax deductions reduce the amount of taxable income and thereby reduce your tax liability. Some of the major deductions are for home mortgage interest, property tax, home office, contributions to health savings accounts (HSA), and charitable deductions.
Tax credits are a dollar-for-dollar reduction in your tax liability. A tax credit directly reduces the amount of tax that you must pay. Tax credits exists for child care, adoption, higher education, earned income, hybrid and electric vehicles, renewable energy and energy efficiency improvements.
Let Green CPA take care of your tax needs today.
Our philosophy is not to reinvent the wheel, but to work with you to make sure all bases are covered in your Tax Planning Strategy.