Break the Cycle: Three Ways to Reduce What You Owe in April
Mar 22, 2023If you feel like you're in an endless cycle of owing taxes year after year, and you dread getting your tax return back, or you wish that you could reduce the amount that you have to pay every April so that you can stop stressing out, this one is for you!
I'm going to share three ways that you can stop owing taxes. We all have to pay our taxes of course, but let's dive in to the three ways to reduce your April tax burden. The major theme here centers on getting proactive. I know that's probably the last thing you want to hear, but it's not as hard as you think. Tune in to reduce how much you owe at tax time, every single year.
"If you wish that you could reduce the amount that you have to pay every April so that you can stop stressing out, this is definitely the episode for you."
In this episode, you will learn the following:
1. Discover three ways to stop owing taxes every year and get proactive about your finances.
2. Learn how to set aside money from every sale and create a separate bank account to keep money out of sight and out of mind.
3. Find out how to plan ahead and talk to a tax professional in the fall to reduce your tax burden.
What you'll hear in this episode:
- Set aside 20 to 25% of your income for taxes.
- How do you know when and what to pay?
- When should you talk to your tax professional?
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You can find out what you’re going to owe much sooner than you think.
Here are some brief snippets from this episode:
[00:00:40]
Shannon: Three ways that you can reduce how much you owe at tax time every single year. Set aside roughly 20% to 25% of your income. Put it in a separate business bank account. Get proactive.
[00:05:03]
You're not required to pay taxes quarterly if you're a business owner. If you are profitable, then the IRS wants you to pay in installment payments throughout the year. To make sure you're not paying a huge lump sum in April, you want to check in quarterly.
Related episodes:
Setting and Measuring Progress Toward Your Business Goals
The Best Ways to Customize Your QuickBooks
How to Know if Your Overhead is Too Large
Resources:
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.