Tax planning is the key to successfully and legally reducing your tax liability. By making tax planning part of your yearly strategy, you can use our experience and access to the most current new developments in the tax laws. We help you customize the best possible plan for you to minimize your taxes not just at the end of the year but throughout all of the year. Remember, we are here to work for you, not for the IRS. Many of our clients save many times the fee in reduced tax liability through our careful tax planning services and legitimate tax strategies.
For most people, tax planning is a difficult balancing act of avoiding or postponing as much tax as possible by taking advantage of breaks available under the IRS Code while simultaneously managing the finances of life. When you choose a tax professional with the skills to guide you through the process of tax planning, you sleep easier at night knowing that you are keeping as much of your hard-earned money as you can.
We work with your investment adviser and attorney to help you plan your financial future. Need an investment adviser? Although we do not offer investment or legal advice, we can introduce you to some of our favorite advisers!
Tax Planning Services to consider:
- Education Planning
- Income Shifting
- Estate Planning
- Marriage Filing Status
- Income Sources and Changes
- Charitable Donations
- Social Security Planning
- Assets Management
- Retirement Planning
- And Much More
A tax projection is a mock tax return of the current year to estimate your federal and state tax liability due on your tax return. Tax projections in conjunction with tax planning saves time, ensures accuracy, streamlines the tax preparation process, and helps to minimize your tax burden. GPS will effectively model complex tax scenarios to eliminate surprises.
Generally, as a part of our tax planning services, these tax projections are done towards the end of the year to implement any tax saving strategies before December 31st. Our fee typically ranges from $250-$500 depending on the complexity of the calculation, with most at $250. Factors include such items as whether we prepared your prior year tax return, the degree of life-changing events, whether you own a small business, etc.
You will receive a tax projection showing the prior year to compare multiple scenarios of the current year. In addition, you will receive detailed instructions and tax vouchers for making any necessary payments to the IRS or state tax authorities.
Estimated Tax Payments
If you normally owe tax on your annual income tax return, there is a chance that you are incurring estimated tax penalties. The IRS and state tax governing authorities require that you pay tax on the income you earn as you earn it. Most people have withholdings taken on their W-2’s to satisfy this requirement. However, if you under-withhold on your W-2, are self-employed, and/or have unearned income, such as dividends or capital gains, you are required to make quarterly estimated tax payments.
Generally, you are required to pay at least 100% of your prior year tax liability or 90% of your current year estimated tax liability, whichever is lower. If you earn over $150,000, you must pay 110% of your prior year tax liability instead of 100%. If you do not pay this amount, you will be subject to estimated tax penalties along with a lump-sum payment on your tax return.
GPS always includes estimated tax vouchers based on the 100%/110% requirement for prepared every tax returns. However, to provide the most accurate tax planning services, we HIGHLY recommend current year tax projections and planning to our business owners and our clients with high unearned income from investments to ensure that you are not paying too much or too little.
The general due dates for quarterly estimated tax payment are:
- Q1 – April 15th
- Q2 – June 15th
- Q3 – September 15th
- Q4 – January 15th
Strategic Business Tax Planning Services
The preparation of a tax projection will allow us to provide you effective tax strategies for lowering your tax liability BEFORE the end of the year and to ensure that you have paid enough into the IRS and state to avoid estimated tax penalties.
Alternative Minimum Tax Planning Services
For those taxpayers affected by the alternative minimum tax (AMT), GPS offers the necessary tax planning services to deal effectively reduce or eliminate the exposure to this tax. GPS prepares the required tax calculations to determine if you are affected by AMT with every tax return.
Multi-State Tax Planning Services
GPS has extensive experience handling the reporting needs of taxpayers with multiple state tax issues due to Schedule C business, partnerships, S-corps, trusts, and estates
Retirement Planning Services
If you are nearing retirement age, GPS will help you, along with your investment advisor, decide important retirement decisions, such as whether to defer social security payments, invest in specific investments, or contribute to a Traditional IRA or Roth IRA.