The Major Differences Between Tax Planning & Tax Preparation featured image.jpg

The Major Differences Between Tax Planning & Tax Preparation

Many people don’t realize it, but tax planning and tax preparation are two totally different things! Tax planning is a service for optimizing your tax situation, taking into consideration your goals and planning for the future. Tax preparation is assistance with filing your tax returns, with the main goal being that your returns comply with both federal and state tax laws. While Prosperity I.Q. offers both services, it’s good to know the difference.

What is the difference between tax planning and tax preparation? Tax planning is an area of financial planning focused on planning to maximize profits and reduce your tax liability. Tax planning is a service we offer where we take account of the tax code, your tax situation, and chart a path forward for you that makes the most sense financially. Do you have specific questions about the benefits of tax planning or preparation or would like to get help? Schedule an appointment today with Prosperity I.Q. Financial Solutions!

Contact Us Today Tax Planning Services

The Major Differences Between Tax Filing & Tax Planning

Tax planning is more long term

Tax planning is all about preparing for the future, planning around existing tax rules and regulations to help yourself save money and invest more intelligently.

It’s usually too late to plan when it’s time to file your taxes

If you are only starting to plan right when it’s time to file your taxes, there are still some things you can do, but proper income tax planning must be a year-round activity. While tax preparation is all about resolving your immediate filing needs, planning is all about keeping track and optimizing your retirement contributions, Roth IRA account, donations, any long-term gains you may have available, and so on. Tax planning is going to be unique for each individual, based on their financial situation and personal goals.

Get The Tax Assistance You Need

If you are in the Raleigh-Durham Triangle area and would like to get help filing your taxes or start working on a plan for the long-term, reach out to Prosperity I.Q. today! Our team has many years of experience in evaluating credit, tax planning and preparation, and guiding consumers to assert their legal rights.

Contact Us Today Tax Planning Services