Tax and Finance

The holiday season is almost here. Fun times are ahead with family and friends, along with a break from the hustle of work and the monotonous routine life, plus a lot of expenditure! Holidays call for buying gifts for your family and close friends, and of course, giving yourself a taste of that special treatment. But, wait, are you dreading the empty wallet already? Don’t lose sleep over how you will manage the additional expenses. This article shares with you some smart tips to effectively plan your budget for the holidays and can tell you how to avoid spending too much. Decide how much you can spend Thanksgiving is around the corner, and by now you must have got a clear idea about how much can you afford to shell out for the holidays. Consider all probable expenses this year, your savings patterns and any cash requirements in the beginning of the next year before you fix on a budget. Keep it realistic. Too high and you will regret later, and too low budget will m...

If you're looking to save money on your taxes this year, consider using one or more of these tax-saving strategies to reduce your income, lower your tax bracket, and minimize your tax bill. Max Out Your 401(k) or Contribute to an IRA You've heard it before, but it's worth repeating because it's one of the easiest and most cost-effective ways of saving money for your retirement. Many employers offer plans where you can elect to defer a portion of your salary and contribute it to a tax-deferred retirement account. For most companies, these are referred to as 401(k) plans. For many other employers, such as universities, a similar plan called a 403(b) is available. Check with your employer about the availability of such a plan and contribute as much as possible to defer income and accumulate retirement assets. Tip:  Some employers match a portion of employee contributions to such plans. If this is available, you should structure your contributions to receiv...

What is Tax Planning? Tax planning is the process of looking at various tax options to determine when, whether, and how to conduct business transactions to reduce or eliminate tax liability. Many small business owners ignore tax planning . They don't even think about their taxes until it's time to meet with their CPAs, EAs, or tax advisors but tax planning is an ongoing process, and good tax advice is a valuable commodity. It is to your benefit to review your income and expenses monthly and meet with your CPA, EA, or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits, and deductions that are legally available to you. Tax Planning Strategies Countless tax planning strategies are available to small business owners. Some are aimed at the owner's individual tax situation and some at the business itself, but regardless of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomp...