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I know what you're thinking - it's only October, why do I want to start thinking about taxes now?
The reality is now is the perfect time. There are only a few months left in this year for you to review your finances and take action to reduce your tax liability. Once January 1 rolls around your options for tax savings are limited.
Start by reviewing your income and withholding/estimated payments made during the year.
Once you have a clear picture of your income for the year you'll have a better idea of what tax planning strategies you can implement.
For example, you may decide you can afford to contribute more to your retirement plan or to defer receiving a bonus until January (if your employer allows it) so you don't wind up in a higher tax bracket.
You might also consider selling some of your loser investments (stocks, mutual funds, virtual currency, etc.) or employing your child in your business if you're self-employed.
Whatever your income level, you have options when it comes to tax planning. If you're unsure of what to do, schedule a call with us so we can help you figure out the best strategies for you.
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