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The Importance of Tax Planning

The Importance of Tax Planning

April 18, 2024

Tax season is behind us for another year, and while you may want to forget about your taxes until next spring, you may not know that this is the optimal time to begin planning for next year’s tax season.  

Everyone knows that tax preparation occurs between February and April every year, and many people believe they can use an online solution or an accountant to save the most money. However, if you aren’t working with a financial advisor and using the remainder of the year for tax planning, you’re likely missing out on significant opportunities to reduce your tax liability.  

Tax preparation is focused on gathering documents and filing your taxes. Most tax preparers aim to file your taxes based on the information you provide, but when given only a short amount of time to file your taxes ahead of the deadline, tax preparers may lose the window the opportunity to reduce the taxes that you owe.  

Tax planning, however, is ongoing and year-round. If you work with a financial advisor and tax professional throughout the year, you can identify methods to minimize your tax burden before tax season arrives.  

Comprehensive tax planning takes a complete look at your financial situation and includes evaluating things like:  

  • Estate planning 
  • Retirement savings and distribution strategies  
  • Portfolio management 
  • Charitable giving strategies 
  • Business planning 

At Willis & Machnik, our team of wealth advisors and CPAs can offer comprehensive guidance that evaluates every opportunity to reduce your tax liability. Our wealth management services are tax smart. Because it matters what you keep, more than what you earn. Every financial decision you make has a tax implication, and we understand where to look to uncover tax-saving opportunities. 

Tax planning is not a one-time or seasonal process. Every change in your financial status, from buying a home to getting a divorce to receiving a promotion, has an impact on your taxes. Contact us to learn more about how we can support your tax planning needs.