Tax Planning Services in Phoenix
Tax planning is the analysis of a financial plan or a situation from a tax perspective. The purpose is to make sure that all the elements work together to allow you to pay the lowest taxes possible. The plan to minimize your pay in taxes is called tax efficiency. Tax planning is a significant component of financial planning.
Reducing tax liability is a major factor within this planning. With that being said, with Heroes Financial Group, come and find your plan. We provide one of the best tax planning services in Phoenix.
Don’t settle for one service at Heroes Financial Group, we provide services and policies for health insurance, retirement planning, wealth management, life insurance and so much more. We can help you with your savings, so hire us to make your life better. We ensure to provide the best and also various personalized services for all of our clients.
Tax planning and management comprise various considerations, which include the size of income, timing of income, and purchases concerned with other expenditures. Not just that, your investments and retirement plans are also considered to go hand in hand with your tax filing.
The deductions are also included to create the best possible outcome. The tax payment plans can include savings for your retirement in an Individual Retirement Account (IRA) or engage in tax gain-loss harvesting.
Tax Planning Strategies with Heroes Financial Group
- One of the best ways to reduce your tax liability is to save your money via a retirement plan. Contributing money to a traditional Investment Retirement Account (IRA) can minimize gross income which will help in efficiently reducing taxes.
- Tax gain loss harvesting is another form of tax planning and management that relates to investment. It is helpful because it can use a portfolio’s losses to counter overall capital gains. According to the Investment Retirement Account (IRA), short and long-term losses must be first used to offset capital gains of the same type. In simpler words, long-term losses offset long-term gains before offsetting short-term gains. Ordinary income tax rates are levied on short-term gains or earnings from assets owned for less than a year.
- Tax planning requires you to know your tax bracket, there are seven tax brackets in the United States tax system. There are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. It has a progressive tax system, which means people with higher incomes are required to pay higher taxes and people with lower incomes are required to pay lower taxes. No matter which brackets you are in, you are not required to pay that rate on your entire income, as the government divides your taxable income into chunks and they levy taxes on each chunk at a corresponding rate.
- Tax deductions and tax credits are the best way for you to prepare your tax return. Both reduce your tax bills but in a completely different way. But knowing that difference can help you effectively save lots of money on taxes. Tax deductions are specific expenses that you incurred that you can subtract from your taxable income. They help in reducing your taxable income. Tax credits are even better, they help you with your tax bill. They give you a dollar-to-dollar reduction.
- Deciding whether to itemize or take the standard deduction is a big part of tax planning because it can make a huge difference in your tax bill. Tax planning in Phoenix with Heroes Financial Group helps in standard deduction, the standard deduction amounts adjust every year and can vary by filing status. The standard deduction amount depends on the tax payer’s filing status, whether they are blind or 65 or above. Basically, it’s a flat dollar, no question asked tax deduction. Taking this route makes the whole process faster as it’s only one deduction not itemised, that’s why many taxpayers do it instead of itemising. Itemizing your tax deduction is a long process, you can itemize your tax return, which means taking all the tax deductions that you qualify for one by one.
Always keep your tax returns and all the supporting documents in a safe place. There might be a chance you might be audited. Generally, the IRS has three years to audit your returns. So, keep your files for at least three years.
Heroes Financial Group is there for you every step of the way if you need help with your tax planning. We have a team of professionals who can guide you through the entire process.
We would love to connect with you and get a better understanding of your needs and we will surely help you with tax planning in Phoenix.