With today being April 5th, I figured I’d pass on a tip from what I learned practicing tax law.
When filing and trying to get the biggest refund or lowest liability for 2018, there are only so many things you or even an accountant can do legally to reduce your tax liability. Because what happened in 2018 happened and it is hard, if not impossible, to go back and change things.
Proactive tax planning is the most effective way to reduce your tax burden. This means (ideally) starting in January 2019 you have a plan on how to either avoid generating taxable income or identifying what type of expenses are deductible against your income. These methods are usually how the wealthy and corporations pay the lowest tax rates.
Attorney Colin Kha T. Nguyen