An accountant generally knows the basic ways to reduce incurred tax liabilities, but a financial advisor like Isakov Planning Group knows the full array of options that can be used on your behalf.
The greatest action you can take to lower your tax liability is to begin tax planning for 2023 today. Do it now, and you will have fewer worries throughout the coming year and a lower tax bill this time next year.
And we’re not simply saying you need to increase your quarterly tax prepayments. Rather, by taking a strategic approach to tax planning, we can identify less-obvious opportunities that may already exist. Based on an individual person’s or business’ approach to tax planning, this could add up to significant savings.
Contractors or 1099 employees may benefit greatly from a conversation with a financial planner. At Isakov Planning Group, we can discuss expected earnings for the upcoming year, current withholdings, and retirement savings approaches that will impact the taxes you pay through 2023 (and the return in 2024). We can provide a financial review with a focus on tax planning today that will reduce your taxes to a predictable figure for 2023. If your income grows, we can always assist with additional strategies.
As part of tax planning, we’ll explore the recently passed Secure Act 2.0, which will be discussed in depth in our next article. This piece of federal legislation provides several ways to add to a person’s or workers’ savings, while lowering taxes owed.
Contact a financial planning advisor at Isakov Planning Group today for a free initial consultation on how to lower your 2022 tax bill and how to minimize your taxes in 2023.