Tax Planning In Connecticut With Nesso Tax

We all want to be smart about the amount of taxes we pay each year. The more we learn about taxes, the more we’ll make good decisions. This is why…

Tax

December 5, 2022

Written by John Wonneberger

We all want to be smart about the amount of taxes we pay each year. The more we learn about taxes, the more we’ll make good decisions. This is why it’s important to work with knowledgeable and experienced tax professionals that can guide you each step of the way.

A person who does proper planning will be able to maximize tax breaks while minimizing tax liabilities. The Nesso Group provides tax planning services to assist individuals in completing their taxes legally and efficiently. We look for practical and creative solutions that will allow you to lower your tax liability and maximize the amount of money you can have available to grow your investments.

LEARN MORE

Understanding Our Tax Planning Services

Tax planning is defined as the analysis of a person’s financial status to create a plan that ensures the lowest possible tax liability. At Nesso Tax, we’re tax professionals who work to help our clients become as tax efficient as possible. It’s an effort that helps create a strong financial future. A secure and comfortable retirement relies on making smart decisions today about your taxes and investments.

When you work with us, you can expect us to have a first encounter where we get to know you. We’ll review your current financial situation, including your income, investments, and debts. We’ll also inquire about your short- and long-term financial goals. The information we gather will help us develop a plan to minimize your taxes and help you pursue your financial goals.

After getting to know you, we’ll provide you with different options and strategies for reducing your tax liability based on your unique financial situation. Our goal is to help you save money on taxes so you can have more money available to invest and grow your wealth. If you like our proposal, we can implement the plan and start working on your behalf immediately. But it doesn’t end there; we continuously monitor your financial situation and adjust your tax plan as needed to keep you on track.

Nesso Planning Considerations

Our specialists take several factors into consideration when planning taxes. Each client is assessed carefully, as each individual has a unique case. We ask many questions and look at all factors of your financial life to determine the best plan for you.

Our goal is to work with each individual with a comprehensive approach to tax preparation in order to maximize their wealth. We feel that proper tax preparation is one of the most important parts of a strong financial future.

These factors include the following:

  • Timing of purchases
  • Timing of income
  • Planning for expenditures
  • Types of investments and retirement plans
  • Tax filing status
  • Possible deductions

Understanding Your Tax Bracket

To begin proper planning, you must first understand your tax bracket. You can’t plan for a good financial future if you’re unaware of where you stand today. This means that the very first step is to know in which federal tax bracket you’re currently in.

In the United States, the IRS uses a progressive tax system. This requires that people with higher taxable incomes pay higher tax rates. In contrast, people with low taxable incomes will pay lower tax rates. Examples of income tax brackets at the federal level include 10%, 12%, 22%, 24%, 32%, 35% and 37% for personal tax.

It doesn’t matter what percentage your rate is; you likely won’t pay the assigned rate on your whole income. These are two reasons why that’s the case:

  1. You’re allowed to apply tax deductions to figure out your true taxable income. As you might have noticed, your taxable income isn’t the same amount as the total income or salary that you bring home.
  2. Instead of multiplying your tax bracket by the taxable income, you’re allowed by the government to separate your taxable income into sections. Each section is then taxed at a specific rate.

If you need help understanding your tax bracket, Nesso Tax is here to help. Our knowledgeable staff can provide the answers you need to educate you on your taxes and form a plan for the future. We don’t just want to file your taxes; we want to help you understand the process and how you can use it to your advantage. This way, you’ll attain more financial security and make better decisions for your future.

Tax Planning Requires Knowledge Of Tax Deductions and Credits

One of the most beneficial parts of proper planning is being able to apply for the correct tax deductions and credits. This important part of planning allows you to significantly decrease your tax liability. It happens in various ways, and Nesso Tax will be the most qualified to determine these items.

We have the knowledge and experience to assist clients in taking advantage of the maximum amount for tax deductions and credits. Our tax services include careful planning of yearly taxes to allow families, businesses, and entrepreneurs to benefit from not overpaying.

Let’s review more about tax deductions and credits:

  • Tax deductions are particular expenses you’ve paid that you can subtract from your total taxable income. These items decrease the amount of your taxes income in order to minimize your tax liability.

  • Tax credits are even more beneficial because they allow you to have a dollar-for-dollar decrease in your total tax bill. For example, a tax credit of $2,000 will lower your tax liability by $2,000.

Nesso Group Finds The Best Deductions Solution

When it comes to deductions, you’re able to take the standard deduction or itemize. An important part of planning is knowing if you should take the standard deduction or itemize to have the lowest tax liability possible. Choosing between the standard deduction and itemizing can significantly affect your total tax liability.

Standard Deduction

In simple terms, a standard deduction is a flat-dollar deduction that requires no explanations. When you take the standard tax deduction, it makes the tax preparation process much quicker. This is why so many taxpayers choose this option instead of the more complicated itemizing process.

U.S. Congress determines the amount applied to annual standard deductions adjusted to inflation. Your filing status will determine which standard deductions for which you may qualify.

Itemized Deductions

The other option is to itemize deductions on your tax return. In this case, you’ll be assessed carefully to see which individual tax deductions you may qualify for. Commonly, this option is taken when itemized deductions are greater than the standard deduction amounts set by congress.

When choosing to itemize your deductions, you must track your expenses in detail throughout the tax year. When you work with Nesso Tax, you’ll be assisted with this process.

A disadvantage to itemizing your deductions is that it lengthens the time it takes to prepare your taxes. You’ll also be required to provide documentation of the expenses that qualify as deductions. However, with our help, this task will be much easier for you. And in many cases, this extra step is well worth the effort. For instance, if you own a residential property, you may deduct the mortgage interest you pay each year along with your property taxes. It’s a great way to save money.

Itemizing deductions may be applied both on your state and federal tax returns. At Nesso Tax, we work with software that helps us quickly determine which deductions total higher than standard deductions and what you may qualify for. Our personal tax services make it easy for you to receive the most benefits.

Nesso Tax Helps You Take Advantage Of The Most Benefits

With hundreds of potential credits and deductions available to you, our tax professionals can easily determine which rules apply to your case. There are many factors that must be considered to gain the most tax benefits. In addition, laws change all the time, and Nesso Tax is at the leading edge of this current knowledge

Working with an experienced tax professional like us will help you ensure proper tax preparation. It’s important that you’re properly guided throughout the year to keep proper documentation that will help you qualify for the most benefits. This step will also help you if you were ever audited. Complete records must be kept for at least three years in case a claim that’s different from your original tax return needs to be filed.

In some cases, you must even keep records for a longer period of time to ensure you’re covered in case of audits.

Smart Tax Planning With Nesso

All individuals that pay taxes pay federal income tax. Where you live will determine how much you’ll ultimately pay as state and local tax guidelines are applied. Nesso Tax’s professional tax services will help you be on your way to steady financial growth. Our experts know the ins and outs of tax laws and how to find creative ways for you to benefit the most from filing at the appropriate tax bracket and applying the most deductions and credits possible.

To start planning your tax strategy for a solid financial future, contact the Nesso Group for a consultation. We’re here to help you understand everything you need to know to make smart financial decisions with your personal tax. Fill out our form today!

CONTACT US

Subscribe To Our Blog

Subscribe

Read More Entries

Let’s Talk About
What’s Important To You

Nesso
Solutions

Our approach to integrated solutions and comprehensive services alleviates stress and elevates success. We provide guidance across multi-dimensional areas of expertise for individuals and businesses. You can trust that we’re working together with your best interest in mind.

Image Item

Nesso
Tax

Image Item

Nesso
Accounting

Image Item

Nesso
Wealth

Image Item

Nesso
Insurance

Image Item

Nesso
Medicare

Image Item

Nesso
Benefits

Call Now Button