Tax Planning 101: Utilizing Tax Information To Understand Changes in Your Tax Situation

Understanding nuances of your own personal tax information will do much to help you both communicate with your CPA as well as to plan for your current tax bill and well into retirement. As such a CPA will work with a client to help understand and apply the many tax variances that might consist on a return to both enlighten and to educate a taxpayer. Below is a sample of what we might send to a taxpayer to teach and to help show clients reasons for variance in both their final tax obligation as well as the net amount due or to be refunded upon year-end income tax preparation:

In Comparing Your Personal Tax Bill From 2008 to 2009 I noted the below, which are the primary contributing factors to your increased tax liability and taxes due:

-Your K-1 from your P.C. increased $25,000 from 2008 to 2009.

-Your Interest Income increased $18,000 from 2008 to 2009.

-The K-1 from your Partnership Interest increased by $40,000 from 2008 to 2009.

-Your federal withholding fell by $8,000 from 2008 to 2009.

To help avoid any unnecessary penalties and interest from being assessed by either the IRS or GA I recommend that we tax plan at least twice annually.

Year End Tax Planning: What Businesses Should Do Now
If you fail to plan, you are preparing to be surprised. Learn how you can get ready now for your year-end liability and survive the year-end tax preparation process. To learn how tax planning tips today visit http://www.hiscpa.com/year-end-tax-planning.html  

Should You Maximize Profit or Work to Pay Fewer Taxes?
Tax Planning is an art under-girded by the science of the tax code and proper planning. Learn what you need to know to be a wise steward of your tax monies. To learn more visit

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for Atlanta Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!