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Why is proper tax planning so important?

Tax planning begins with knowing and understanding your tax bracket. Can you really plan for the future, if you have no idea where you are today?

First step is knowing what your federal tax bracket is. These begin from 10% up to 37% of your income.

It doesn’t matter which bracket you fall under; you are most likely not going to pay taxes on your entire income at that rate.

Reason number 1: Your income is divided up into portions and each portion may get taxes at the appropriate rate.

Reason 2: You get to subtract your tax deductions to determine your taxable income. This is the reason why your taxable income and your total income you made from sales, wages and other earned income isn’t the same.

Here is a nice example:

Schedule some time to sit with us and we will customize a plan specifically for your business growth.

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