Plan Today With Tomorrow in Mind
Tax Planning
Tax preparation records what has already happened. Tax planning looks forward and considers how decisions made throughout the year may affect future tax outcomes.
ARP Tax Pro takes a holistic approach to current and future tax needs by helping individuals, families and businesses evaluate important decisions before those decisions become part of a completed tax return.
Two Important Services
Tax Planning and Tax Preparation Work Together
Tax Preparation
Tax preparation generally focuses on organizing and reporting transactions and financial activity that have already occurred. The applicable return is prepared using the information and documents provided by the taxpayer.
Looking BackTax Planning
Tax planning looks ahead. It evaluates potential transactions, income changes and financial decisions while there may still be time to consider alternatives and understand possible tax consequences.
Looking ForwardA Holistic Tax Perspective
Tax Planning Areas
Your tax picture may be affected by income, investments, retirement decisions, charitable giving, business activity and many other financial events.
Individual & Family Tax Planning
Review income, deductions, credits, investments and major financial changes that may affect your current or future tax picture.
- Changes in household income
- Investment and property transactions
Retirement Income Tax Planning
Different retirement income sources may receive different tax treatment. Planning can help examine how withdrawals and other income may interact.
- Retirement-account withdrawals
- Pension and investment income
Social Security Taxation Strategies
Depending on a taxpayer’s income and filing circumstances, a portion of Social Security benefits may be subject to federal income tax.
- Review other retirement income sources
- Evaluate potential taxation interactions
Roth IRA Conversion Strategies
Roth conversions generally create current tax consequences. Planning can help evaluate whether a conversion may fit within a broader long-term tax and retirement strategy.
- Consider conversion timing and amount
- Review potential current-year tax effects
Charitable Tax Planning
Thoughtful charitable planning can help coordinate your generosity with tax, financial and legacy considerations.
- Consider timing and giving methods
- Coordinate charitable and legacy goals
Small Business Tax Strategy
Business decisions can affect both company and personal tax circumstances. Planning helps business owners consider those effects before completing important transactions.
- Business income and expense planning
- Estimated-payment considerations
A Thoughtful Process
How Tax Planning Works
Effective planning begins with understanding where you are, identifying upcoming changes and evaluating potential options before action is taken.
Understand
Review your current tax situation, income sources, business activity and longer-term priorities.
Identify
Identify upcoming decisions, changes or transactions that may create tax consequences.
Evaluate
Consider available alternatives and how each could affect your current and future tax picture.
Review
Revisit the plan as tax laws, income, business activity and personal circumstances change.
Timing Matters
When Should You Review Your Tax Plan?
Tax planning is not limited to tax-filing season. A review may be useful whenever your income, family, business or financial circumstances change.
Consider a Review When You:
- Approach the end of the tax year
- Experience a significant change in income
- Start, purchase, sell or restructure a business
- Consider retirement or a retirement-account conversion
- Plan a significant charitable gift
- Move, work or conduct business in another state
Review Your Federal Tax Withholding
The official IRS Tax Withholding Estimator can help eligible taxpayers estimate withholding from wages, pensions or annuities and determine whether an adjustment may be appropriate.
Don’t Wait Until Filing Season to Start Planning
Contact ARP Tax Pro to discuss your current tax picture, upcoming financial decisions and potential long-term planning opportunities.