Running a small business involves more than just getting up and going to work. It’s also about planning for taxes, which is why most small businesses choose to hire Nationwide Tax Resolution tax professional who can help them avoid expensive mistakes that could lead to penalties or interest charges when filing your taxes. In this post, we’ll cover some of the basics of how tax planning works in 2023.
What is tax planning?
Tax planning is a process of reducing your tax bill and it can be done in a number of ways. It can be used to reduce the amount of taxes you pay, but it doesn’t necessarily mean “tax avoidance”. Avoidance refers to the process of using legal means (such as deductions or investments) to reduce the amount of taxes owed by reducing taxable income. Tax evasion refers to purposefully failing or refusing to pay income, sales or other taxes due as required by law.
Tax planning involves looking at all possible avenues for reducing your overall tax liability so that you’ll end up with more money in your pocket than what’s coming from Uncle Sam!
take full advantage of deductions and credits
Deductions and credits are a way to reduce the amount of income you pay tax on. They’re also a good way to save money on your business taxes. You can get an early start on tax planning by taking full advantage of deductions and credits available through the end of the year.
Here’s how it works:
- Deductions—You may be able to deduct certain expenses from your gross income if they’re directly related to running your business as well as keeping track of them properly so that they’re deductible at all times throughout each quarter (or year). For example, if you have employees who work in your office space during working hours, then those workers’ rent payments could qualify for this deduction since this expense would be more than just part-time employees doing occasional tasks like cleaning up after meals or taking out garbage bins when necessary without requiring any special training beyond basic skills required by any other employee position within any company anywhere in existence today!
good way to save money on your business taxes.
A pass-through deduction is a tax deduction for business owners. It allows you to take the cost of your business expenses as an itemized deduction on your personal taxes, rather than having them deducted from your company’s income.
The pass-through deduction isn’t new, but it’s becoming more popular in recent years because of its potential benefits. If you’re considering taking advantage of this option with your own business, here are some things you should know before doing so:
- What is a Pass Through Deduction?
- How Does It Work?
- How Much Can I Save With This Option? What Can’t You Do With Your Pass Through Deduction?
Retirement savings plans are also a great way to plan for taxes as a business owner.
If you are self-employed, setting up a SEP IRA can be beneficial for your tax planning. A SEP is an individual retirement account that allows an employee to contribute up to $5500 into their own retirement savings plan each year. This is an excellent option if you have employees or even if you are just starting out as a business owner and want to start saving for retirement while still working on building your company.
If you do have employees, but they don’t participate in the company’s 401k plan (or any other type of employer-sponsored retirement plan), there are still ways that they can save money for their future! One way is through setting up a SIMPLE IRA account at one of the several online brokerages like TD Ameritrade or Scottrade; another way would be through setting up an employee stock purchase plan through Vanguard Direct Planner which allows people who work at small businesses with under 500 employees access to low-cost shares without having them pay any fees associated with these types of accounts until after five years pass since opening them up (this also comes down further if there are fewer than 10 employees participating).
different ways to offer health insurance benefits to your employees.
If you’re self-employed, check out the different ways to offer health insurance benefits to your employees. You can either offer them with a traditional plan through an insurance company or a high-deductible plan like HSA’s (health savings account) which allows them to pay for their own medical expenses out of pocket until they meet certain limits set by their employer.
You may want to consider offering both types of plans depending on how much experience and training your employees have in regard to handling finances or making decisions about their own healthcare needs. It’s also important that you make sure that any benefits are affordable for all parties involved—if not, it might be best if someone else stepped in as manager since this would help ensure everyone gets what they deserve!
Reviewing 2022’s tax reform can help you prepare for 2023 when it comes to taxes.
The most significant change to tax reform legislation in 2022Nationwide Tax ResolutionNationwide Tax ResolutionNationwide Tax Resolution was the passage of the Tax Cuts and Jobs Act. This law significantly reduced income tax brackets for corporations, but it also made many adjustments to other taxes that will have an impact on businesses.
In order to make sure your business is compliant with this new legislation, you should review its provisions and make changes if necessary. For example:
- You may need to increase or decrease deductions based on how much money your company makes or spends each year (especially if you want more deductions). Make sure that these changes don’t exceed certain limits so they don’t trigger additional taxes from the IRS.*
- Your insurance premiums could be higher than usual due to fewer exemptions available under new rules when calculating how much insurance coverage is needed by employees who work more than 30 hours per week.*
Tax planning is an important part of running a business, and it can help you save money.
Tax planning can also help you avoid penalties and get bigger refunds. If the company is audited by the IRS, hiring someone from Nationwide Tax Resolution will make sure that everything goes smoothly and there will be no issues with filing your taxes!
If you’re planning to open a business, you need to be aware of all the tax rules. That’s why it’s important to start planning now so that you can get ahead of the game when it comes time for next year’s taxes.