Annual financial reports show that many Americans overpay on their taxes by a collective one billion dollars every year. This happens when people fail to hire experts who are well-versed in available tax credits and deductions. Considering tax implications, laws and spending before tax season can help you to properly plan and take advantage of credits and write offs available to you.
There are a number of deductions to consider, including:
- Charitable Expenses – Depending on the nature of your giving and documentation, you may be eligible for a deduction related to charitable contributions.
- Job-Hunting Costs – Whether seeking employment or to recruiting employees, you may have expenses in this category worthy of consideration.
- Lifetime Learning Credit – With proper documentation, certain programs may allow for a tax credit.
Bigger Picture Changes
In addition to claiming credits during the actual filing process, there are a number of big-picture changes you may want to consider in the coming year.
- Choose the Right Business Structure – An experienced accountant can help analyze your practice structure and advise you when deciding the business structure of your practice.
- Maximize Your Medical Benefits – Any smart tax strategy includes proper management of medical benefits. For example, businesses with employees can take advantage of Medical Expense Reimbursement Plans. These allow you to write off medical bills as business expenses.
- Choose the Right Retirement Plan – Retirement plans help ensure financial stability and living standards when you eventually retire. An experienced accountant can help you choose between a 401k, defined benefit, SEP, and more to meet your goals.
Tax season only comes once a year, but it’s something any dental professional should be considering long before April. Our experienced accountants can help turn a hefty tax payment into a large return. Contact us today to see what our team can do for you.