Why you should start tax planning for 2024

Why you should start planning for your 2024 tax return right now

Why You Should Start Planning for Your 2024 Tax Return Now

As we put another tax season behind us, you likely feel like you just barely got done filing your 2023 tax return, and you’re probably ready to put taxes out of your mind until next January rolls around. However, the best time to start planning for the next tax season is right now. Proactive tax planning is key to maximizing your tax benefits and minimizing your liability when you file. Here are just a few reasons why our tax planners encourage our clients to start their tax planning early.

A More Accurate Return

As the saying goes, haste makes waste—and it also makes a lot of mistakes when you file your tax return. Planning for your taxes now allows you to take a measured and methodical approach. You can take the time to understand which deductions you might qualify for this year, ensure you have a filing system in place to organize important documents for your return, and address any questions you may have about this year’s taxes well before the filing deadline approaches. Taking the time to handle these things now means you won’t be rushed when it’s time to file, and you can ensure that everything is handled appropriately, and your return is as accurate as possible.

A More Efficient Filing Process

Even though you won’t be rushed when tax season rolls back around, by planning for your return now, you’ll likely find yourself filing a lot more quickly than you would do without any preplanning. As we already mentioned, early planning allows you to organize your documents and address questions regarding your tax situation now; not only does that mean fewer mistakes later, but it also means fewer tax-related tasks to check off your list in tax season. That means you’ll be able to get your forms completed and submitted sooner, with less stress, and even look forward to a faster return, should you qualify for one.

Make Strategic Financial Decisions

Perhaps one of the greatest benefits of early tax planning is the opportunity to make strategic financial decisions throughout the year. Whether you’re filing as an individual or a business, the financial decisions you make throughout the year will directly impact your tax return next year; taking a reactive approach to taxes means you simply report the numbers after all the financial decisions have been made. With a proactive, pre-planning approach, you can evaluate your financial choices throughout the year and weigh which one will have the greatest positive impact on your tax return—something that can play a major role in your choices.

For example, individuals can make important decisions regarding which retirement accounts to contribute to, how much to give to charity, and even take advantage of “bunching” tax-deductible expenses to get the greatest tax benefits year after year. Businesses can analyze profitability, assess investment opportunities, and implement tax-saving strategies like cost segregation and accelerate depreciation to minimize their taxable income throughout the year. Early tax planning is an important step in a holistic financial plan for the rest of your year.

Take Advantage of Your CPA’s Open Schedule

It likely comes as no surprise to you that we’re incredibly busy during tax season. With the sheer number of returns that need to be filed in a relatively short period of time, it’s difficult for us to sit down with each of our clients and have a one-on-one discussion about optimizing your tax credits and deductions for the maximum profit. However, in the off-season, our schedules open up significantly, giving us more time to go over those nitty-gritty details that can really help you save on your taxes. 

We encourage you to reach out to our Provo tax planners now to schedule a tax planning consultation, so you can take a more measured approach to your finances throughout the rest of the year. Contact The Accounting Guys today to schedule your tax planning meeting with an experienced CPA.

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