Well folks, this is week one of income tax season, and I again ask myself the same question: why?
I can honestly say that tax advisory services does bring in 40 percent of our revenue. Of course, that’s a good thing.
Monday call: “I want to know how much you charge? My taxes are simple but I have a big problem.”
Wednesday call (After free 30-minute phone conversation): “…are you sure you know what your talking about? My grandmother never did it this way.”
Friday call: “Where’s my check?”
Welcome to my world: 16 weeks of wonderful madness called income tax season. I decided in 1999 to explore the world of taxation deeply for one reason–I believe I would say it is the same reason I studied economics–it is about the flow of money.
Yes, we should pay for some federal, state, and city services but when we look at our check, coupling all taxes, it could be as high as 45 percent. Now that’s a lot! Let me ask you: do you know a place where you can make up to 45 percent for one year in a financial institution that’s guaranteed?
Guess what? I don’t either. So I figured in 1999, of course everyone wants to pay their fair share of taxes. But you should understand what happens if you over- or under-pay.
After putting myself in what I believe was my correct adjustable bracket, my tax bracket went from 35 percent to 7 percent. How did that happen? By just understanding the tax code. In layman’s terms, we call this tax planning and finding a sound advisor and folks, we definitely suggest you consider planning just as important as preparation (this year, 2017 taxes).
The Trump plan is affecting you now, right? I already had a few clients call and ask, “I got $60 more in my check, Trump did it.” I gently remind her, without talking politics: ” In general, you’re paying $60 less to the IRS kitty. At the end of the year, this will $1,360 in your pocket that you did not put into the IRS kitty this year. Congratulations! Now, remember, when we do your 2018 taxes in 2019 what are you going to be looking for: the amount you have in your 2018 kitty. All things remaining equal it should be less $1,360, right?”
I could feel the eyeglasses pop right over the phone.
Yes, even more than preparation, planning for next year’s taxes might be just as evenly important. One of the best ways to achieve wealth is by the reduction of your taxes.
Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both, City University of New York & Monroe College, a Private University. For financial assistance or a FREE 2017 Income Tax Analysis. Anthony can be reached at (347) 575-5045.