How much should you be paying in taxes? Should it always be the same or vary from year to year? Watch this short video and learn how to keep Uncle Sam from taking more than his share of your hard-earned dollars.
Quick, answer this question: what’s your tax strategy?
If you don’t have an answer, you’re paying out more in taxes than you should. Period.
Your taxes should not be on autopilot. They should be assessed each year to maximize your savings year over year so you can make contributions that are smart, not static.
For example, you can balance out a high-profit year by reducing your income through profit-sharing contributions or a cash-balance pension – and, thus, pay less in taxes. Alternatively, if you purchased equipment this year and your tax rate is low, you can adjust your Roth 401K contributions to minimize your tax bill.
If you’re paying the same taxes year after year, it’s time to stop giving those extra dollars to Uncle Sam – and it’s probably time to have a talk with your financial advisor.
If you need help determining your tax rate and strategy, call Dentist Advisors. The first consultation is free, and it just might save you some serious cash on your taxes this year.