If you have graduated into a six figure income or higher, you have probably realized that a significant portion of your hard earned income goes to the government in the form of federal, state, and other payroll taxes.  Many individuals, like yourself, who are in this income range struggle to find ways to decrease their tax liability.  The constant changes in tax laws can make this a difficult task to accomplish without the guidance of a tax professional who has expert knowledge in the tax regulations and how to apply them on a  case by case basis.

The following is a list of 5 tax laws that make tax planning complex and challenging for high income earners.  Becoming familiar with this list of items and understanding how they may impact you and the overall amount of taxes you will pay, is the first step in creating a customized tax strategy that will work best for you and your family.  

One of the main causes of federal income tax troubles is not paying enough income tax throughout the year.  The United States income tax system is a "pay tax as you go" type of system.  In other words, taxes must be paid as you earn income (wages, salaries, self-employment income, capital gains, etc.).  Income taxes can be paid either by way of withholdings or estimated tax payments which are paid on a quarterly basis.  If you do not pay a sufficient amount of taxes throughout the year, a penalty could be charged on your tax return (even if you are due a tax refund).

One way to avoid owing income taxes at yearend is by paying a sufficient amount of withholding and/or estimated taxes to cover all applicable taxes that could be assessed on your return, such as self-employment tax, alternative minimum tax, and federal taxes.  

If you don't think you've paid in enough taxes and will owe at the end of the year, this blog will help you find some possible solutions to your issue.  Additionally, this article will provide information about how to determine if you must pay estimated taxes, and how to calculate any potential taxes you may owe.  

April 18th is just around the corner...have you filed your tax return?

 If you are of the many taxpayers who owe taxes year after year and never really understand why, this article will help to uncover some potential reasons why, as well as help you to avoid this problem going forward.

Once an individual makes the decision to start a business,  usually the next decision that has to be made is determing the type of business they will have.  There are many options available,   This is a common question among new start-ups, as well as those already operating their business, and unfortunately there is no “one-size fits all” answer to it. This is why we always seek to gain an in-depth knowledge of your business and personal objectives for starting and operating your business in order to provide the most appropriate answer for your unique situation.

Am I able to write off my donation?

This is a common question that generally is not asked until it's too late.  Many dollars have been lost because the necessary financial records required to qualify for such tax saving actions were not maintained and/or proper documentation was not provided at the time of donation.  To help you avoid losing out on these tax benefits, we have outlined some tips to help you capitalize on such a common, but often misunderstood tax shelter that makes a difference come tax time.

Selecting the right tax professional can be just as important as choosing the right person to marry.  Okay, maybe not as serious as marriage, but it is pretty important.  Think about it.  Since more than likely, you are not an expert in tax,  you have to find a professional you feel comfortable with and whom you can trust to prepare your return accurately and give you insight where needed.  When you do not ask the right questions upfront, you usually find out that your tax preparer really was not the expert you thought he or she was, when it's too late.  This post provides insight on what  you should consider when choosing a tax professional this tax season.