Tax season is right around the corner! Julie's sitting down with two members of the GreenOak Accounting Tax Team, Emily and Linda, to discuss our top tax tips for reducing your tax liability and optimize your benefits.
Episode Highlights
- Tax Planning v. Tax Preparation
- Tax Planning – proactive look at the business to evaluate opportunities to legally reduce the tax burden at the beginning of the year
- Tax Preparation - happens after the year is over and there are limited opportunities to change your tax amount owed
- Tip #1 – Accelerating Expenses
- If you’re a cash-based business, it is more beneficial to pay certain normal, ongoing business expenses in December rather than January in order to take full advantage of the tax deduction
- Tip #2 – Retirement Planning
- There are a number of contributions you can make to a Roth IRA, traditional IRA, or even your 401K
- Tip #3 – Business Use of Your Personal Vehicle
- Download an app on your phone to track the mileage on your car for business use
- Make sure to take a listen to the episode to get the FULL list of 2021 tax tips!
Links & Resources
GreenOak Accounting
Therapy For Your Money Podcast