Best Tax Planning Strategies 

Is tax season an event that comes around every year, demanding your time and attention; one that you’re then happy to forget about until they come around again the next year? That is accurate for many Americans but the truth of the matter is that strategizing for taxes throughout the year can save you significant sums and reduce your tax burden. Rather than ignoring taxes until tax season, taking a proactive approach and implementing best tax savings practices will benefit your finances both in the short and long term. 

How to Save on Taxes Year-Round

• Track and bunch deductible expenses: It’s always a good idea to keep records of your tax-deductible expenses such as medical bills, donations to charities, business-related costs, and so on. If you are on the cusp of a standardized deduction, it can be a good idea to bunch your deductions into a single tax year. Planning ahead can help you arrange charitable donations, medical procedures that are not time-sensitive, and other deductible expenses into one year to gain the tax advantages.
• Increase retirement contributions: It’s incredibly helpful to maximize on contributing to 401(k)s, IRAs, and any other tax-deferred accounts.
• Review your W-4 for withholdings: Look over your paycheck and determine if the withholding amount is where it benefits you the most. Using your money all year long may benefit you more than a larger withholding, depending on your situation.
• Use tax-advantaged accounts & credits: Reducing your taxable income helps you save on taxes over time fairly significantly. Seek out and use Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), to name a few. Additionally, there are several tax credit opportunities for education, child and dependent care, energy-efficient home improvements, and other such ways to save on taxes. A Watkins & Co tax professional can help you discover which deductions and credits you’re entitled to.
• Pay attention to capital gains and losses: It’s important to remember that the longer you hold an asset (usually more than a year), the lower the tax rate, so it’s wise to strategize your investment portfolio to reduce the tax you’ll owe on the profit. You may also want to consider strategizing a tax-loss harvesting plan to save on investments that have lost value when you’re selling other investments.
• Work with a Jackson, MS tax planning accountant: Planning with a professional early on in the process can help you take advantage of every tax reduction, credit, account, and deferment. Our local tax advisors at Watkins & Co. can help you strategize for both your short and long term financial health. 

Best Tax Advisors Jackson Ms

Watkins & Co. offers some of the best tax planning services in the state of Mississippi. Our tax CPAs and tax accountants in Jackson, MS have decades of experience in helping individuals and businesses in Jackson and beyond reduce tax burdens and save all year long. Besides reliable tax planning, we also offer comprehensive filing services so that you can simply rest easy and watch your financial strategizing pay off! 

Contact Watkins & Co for our comprehensive tax services today and start getting some of these best practices working on your financial behalf!