Who Can Benefit from a Tax Plan?

While the first federal income tax was first created in 1861, it wasn’t until 1913 that the 16th Amendment to the U.S. Constitution was ratified – allowing Congress to collect taxes on incomes, regardless of the source. And it wasn’t until 1926 that the U.S. House of Representatives first published the original tax code. Over the decades, the tax code has evolved. In the past decade alone, it’s been estimated that the tax code has been amended over 4,000 times. Today, the tax code is estimated to be over 70,000 pages long.  

From changing tax rates to income brackets, keeping updated on ever-changing tax rules and regulations is challenging for anyone who doesn’t have an extensive background in tax laws. Because the tax code is otherwise incomprehensible to anyone but tax professionals, it’s fair to conclude that most people wouldn’t have the skills or knowledge to strategize their tax plan. Because of the complexities of tax planning, many may push creating a tax plan to the back of their minds thinking that fulfilling their tax obligations is enough. However, a tax plan can help individuals and businesses achieve greater financial stability when developed and executed strategically.

Tax Planning for Individuals

While we know that paying taxes is inevitable, we can’t help but feel a certain sense of loss, knowing that taxes take a toll on our personal finances. We think about how much better we would feel knowing that money was still in our hands, accessible in case of an emergency, or if we ever wanted to treat ourselves to a reward. But as reluctant as we feel about paying taxes, imagine how much more frustrating it is to discover that you’re paying more than you should because you weren’t strategic about taking advantage of certain credits, exemptions, and deductions?

When you work with a tax professional to develop a tax plan, you’re being proactive about your financial health. You gain peace of mind knowing that you’re not paying more than you legally should and putting more money in your pocket. And with these savings, you could be rewarding yourself or making worthwhile investments that could either gain more income or lead to more tax-saving benefits.

Tax Planning for Businesses

Business owners know the importance of long-term financial planning. With that comes paying taxes so that they don’t put their business at risk. Business owners need to pay attention to ever-changing tax laws because many of the changes apply to them. With tax laws changing constantly, hiring a Certified Tax Planner will take away the burden of researching what changes apply to your business. Year after year, your business could be reducing your taxable income simply by taking advantage of tax reforms or tax relief specific to companies. But even without any significant changes to the tax code, businesses still benefit from tax planning by helping them organize their finances, outline clear financial goals, stay ahead of the curve, prepare for an audit, and avoid tax-related stress. 

At Golden Tax Relief, we provide expert tax planning services to individuals and businesses that need help developing a tax plan. With decades of experience and tax code knowledge, we can help ensure you’re not overpaying your taxes and are rewarded with financial stability. For expert tax planning advice, click here for a consultation or call 844 229 8936. 

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