tax-filing

Major Differences between Tax Filing and Tax Planning

When you combine statutes, regulations, and case law, tax law in its entirety is well over 70,000 pages or roughly 31.5 million words. If you were to read War and Peace 56 times, you’d come just shy of all there is to know within tax law.

That’s a lot of information! Most individuals and small business owners cannot consume such a complex document before they’re ready for income tax filing. Mesa area folks and businesses, here’s what you need to know before you file!

Tax Planning

Tax planning takes place well in advance of the actual filing and is a more long-term strategy. This usually consists of a consultation arrangement with a professional and deep financial analysis to help you use the tax code in ways that will benefit you the most.

Efficient tax planning helps you look into the future and predict how you could benefit from applicable tax rules. Planning for expenditures, the timing of your income, the timing of certain purchases, income size, and saving for retirement are all potential benefits of tax planning.

A deep understanding of tax law is required to realize the rewards of proper tax planning. Finding ways to reduce your tax burden is well worth the cost and effort of a paid professional. In order to help you build your personal finances or ensure your business gets as many applicable deductions as possible, reach out to our team today!

Tax Filing

This is the actual preparation and submission of your tax return to the IRS by the deadline. Depending on your income bracket, if you owe the government more money in taxes, there could be financial penalties for late filing.

Most people who are planning for income tax filing in Mesa, utilize tax preparers, CPAs, or tax filing software to accomplish this every year. As an American citizen, you’re duty-bound to pay taxes. The objective is to pay them as legally and accurately as possible to avoid fines or legal penalties.

At the time of tax filing is not the time to start tax planning. However, it’s the perfect time to start now and plan for the coming year.

We Can Help With Income Tax Filing in Mesa!

Luckily, you’ve got tax pros like us at M&M Accounting LLC in your corner!

If you’re wondering the best way to file with your spouse or partner or how to incorporate the earnings from your side-hustle, we can help you navigate the process to have the most beneficial impact on your finances.

As professional accountants and tax preparers, we’re required to keep up with new and existing tax codes and can help you find and leverage any applicable deductions.

Reach out to an M&M team member today and get ahead of the game of filing your 2022 taxes!

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