Are you retiring this year?
- Are you thinking about selling a rental property?
- Did you start a new business?
- Are you considering taking money from a retirement account to pay off the mortgage?
Please call us before you make any significant financial decisions that could impact the amount of income taxes you pay. Timing is everything when it comes to tax planning.
The first year of retirement where you have a combination of wages, pensions, and possibly Social Security income can make it difficult to determine if you are withholding enough to pay your taxes for the year. We can create a comprehensive tax plan for you to prevent surprises when your tax return is filed.
Selling a rental property, especially If you have held it a long time, will create a significant increase in your income. If not timed properly, you could be paying more tax than necessary. If you are starting a business, you most likely need to consider the possibility of paying estimated taxes throughout the year. We also assist existing small businesses with planning for the current tax year based on prior year income and evaluating significant changes in business income for the current year.
Most retirement account distributions are taxable income. Not only will they increase your tax liability, depending on the size of the distribution, they can trigger other taxes, push you into a higher tax bracket, and even increase your Medicare premiums.