Planning for Tax Time

As I write this post as of the middle of September, I am fairly certain that most people are not thinking about the tax return deadline or the last day to file taxes.  No dear reader, you are not.  But we whom like to plan are always, well, planning.  We cannot help it.  It is our nature.

tax deadline

 

If you are a small business owner this may not be relevant for you as you may have to pay taxes quarterly.  If that if the case, planning just might be even more important to you.  Most people don’t plan for their tax deadlines the way they should.  Most fall into two camps; either they owe money or they have money coming back to them.  Which one do you fall into?

Some think that getting a tax return is a forced savings plan or found money.  Others dread lending money to the government at zero interest but times have changed and ZIRP (Zero Interest Rate Policy) or even NIRP (Negative Interest Rate Policy) are the norm.  But for most of us there are no benefits to that policy.  Some like to make adjustments to their withholding taxes to come as close as possible to deductions equaling required taxes.

Our plan here at The 12 Month Plan is to reduce our income and live off of gains.  Get thee an army of golden slaves so to speak.  By saving a part of all we earn only the future benefits of that income is taxed again.  Although it now takes a savvy financial planner to keep us from paying to much.

Financial Planning

 

However you prefer your taxes to be done, we suggest giving some forethought to the process so that you don’t caught owing a great sum when the bill comes due.  Leave a comment below and tell us what you prefer and how you handle this situation.

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