Quarterly tax planning is essential for staying on top of your tax obligations and avoiding surprises at year-end. Regularly reviewing your financials and tax strategy allows you to make adjustments throughout the year, ensuring you’re taking advantage of available deductions and credits. It also helps you forecast your tax liability, so you can set aside funds for tax payments and avoid penalties.
Effective quarterly planning includes strategies like optimizing retirement contributions, such as through a Solo 401(k) plan. A Solo 401(k) allows business owners and self-employed individuals to maximize retirement savings with contributions up to $58,000 per participant (or $64,500 for those 50 and older). These contributions are tax-deferred, reducing taxable income and growing tax-free until withdrawal. Additionally, maximizing Health Savings Account (HSA) contributions provides a triple tax advantage, allowing for tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
Our quarterly tax planning meetings help clients proactively manage their tax situation, from estimating quarterly payments to adjusting withholding and planning for major expenses. By staying engaged with your tax strategy year-round, you can take advantage of opportunities such as Section 179 expensing, cost segregation studies, and R&D tax credits to reduce your tax burden. This proactive approach can help you achieve greater financial success and peace of mind.
