Tax Planning

Are you ready for Tax season?

Many are caught by surprise when they file their taxes, and it is typically not a pleasant one!

Tax planning season used to be such a stressful season that I would have sleepless nights. On a few occasions, I stayed up until midnight on tax filing day, trying to comb through receipts of all my donations to charities and emails to find tax deductions. At the end of all that work, I would have a huge tax liability or bill.

After filing my taxes and paying my tax liability, I would promise myself not to go through the same pain the following year. I would review and analyze the effective tax rates of individuals in my tax bracket and then convince myself that I have the answer.

When I asked an esteemed and extremely successful business owner what I needed to do about my tax planning in CT, his response was “make more money”. This answer created more questions in my mind. In order not to worry about taxes, I needed to make a lot more money. If the taxman took 90% of my earnings I would still be ok.

What I did not realize then is that tax planning—especially in the case of my clients, tax planning in CT is a necessary undertaking. Through tax planning, all the elements of a financial plan would work together in the most tax-efficient manner possible. Making more money helps, especially as a business owner. However, putting a tax plan in place is paramount.

Don’t get caught unawares, giving the government money you hoped to save. Instead, be prepared by making some important choices that will alter your taxable income and provide you with more deductions. Contact Armah Financial for assistance with tax planning in CT. Video calls are certainly available for anyone out of state as well!