A recent study showed that almost a quarter of American taxpayers do not have a financial plan. Financial planning can be hard. It involves so much time and information. Then, once you get that information what does it all mean, or how are you supposed to use it. A recent study shows that 55% of American taxpayers have gotten valuable financial information from their tax return, but only half of that number actually assess their tax returns annually.
Examining your tax return can tell you so much valuable information. It allows you to look at trends from year to year. You can assess income to see if it is non-recurring or reoccurring. You can look at deductions to identify your major expenses. With assessing both of these you can get a good idea of how much money you have left after all of your expenses are covered.
Then from here you can ask more specific questions. For example, how would it affect me if I took more money out of my retirement account, or how would buying this house affect me. You can even assess how having a kid would affect your tax return and financial wellbeing. There is so much you can learn and plan from taxes. Most people think having your taxes done is a once-a-year thing. Tax planning can be super beneficial and not only when it comes to tax time.
So, if it is this beneficial and great why isn’t everyone doing it? Well, that is a simple answer. Tax returns can be very hard to understand. There are so many schedules, depreciation sheets, and just forms in general to look through. That is why talking to a tax professional and tax planning can be so beneficial. Talking to an expert can allow you to benefit from tax breaks and to be able to better plan for the future. Here at SWVA tax and accounting we pride ourselves on our tax planning and want to help every client achieve financial success and peace of mind. Give SWVA Tax & Accounting a call today at (540)-250-3198. We’ll run the numbers, while you run the business.