Can tax planning really reduce what you owe? Something many taxpayers find confusing is the differences between tax planning and tax preparation. What’s the point of tax planning? Won’t you owe the same amount no matter what? Let’s take a look.

Tax Planning

Tax planning is making shifts in a taxpayer’s financial and business situation to minimize their tax burden both in the short term and over time.  This often requires working in advance, before the end of the year to identify and evaluate solutions and implement them.

Tax Preparation

Tax preparation, on the other hand, is recording the history of what actually occurred for the previous year. We can’t rewrite that history; we can only determine what a taxpayer does or does not qualify for.  Since planning relies on making shifts to take advantage of tax breaks, it becomes impossible to do after the fact.

How We Can Help

True planning looks at both current and subsequent tax years in addition to keeping an eye on the future with ongoing frequent discussions with clients throughout the year about their goals and wealth accumulation.  It generally includes combinations of several strategies to achieve optimal tax minimization.

Our team specializes in tax planning and the optimization of your tax-saving goals.  To utilize one of the best services we offer, contact us at (402) 932-8815.

Sincerely,

W.E. Stevens PC