How to Achieve Maximum Savings in Income Tax with Stoller Associates CEO Keith Stoller

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BAKERSFIELD, CA / ACCESSWIRE / January 18, 2022 / Tax planning is something many people worldwide find challenging. From inadequate knowledge on income tax to negligence of keeping an up-to-date tax profile. Many people and small businesses often find themselves in common tax pitfalls that can have far-reaching effects on future personal, family, and business income. A lack of adequate knowledge on the benefits of proper tax planning and access to vital information on the consequences of tax non-compliance leads many to ignore tax issues and think there’s not much to worry about. However, that isn’t any way to enjoy peace of mind and maximum savings in income tax. But, part of the common tax pitfalls can land you in the trouble of accumulated tax at retirement.

Many people are always in for a rude shock when they realize how huge their tax burden is and even find themselves unprepared to live on their retirement income. While most people plan on how to live on their future income, they often fail their homework when it comes to proper income tax planning. As a result, many people fall short of their dreams due to unawareness of the ever-changing tax laws and regulations. Accumulated taxes and penalties can have a devastating impact on individual future financial plans, including retirement income. Moreover, it can also leave families in very tough situations when a family member passes on. To avoid life-altering tax problems, tax planning services come in handy.

Keith Stoller, the founder of Stoller Associates, has been offering tax planning services to the people of California, US, for more than 35 years. Stoller has made it his lifework to tax-paying small business owners to achieve maximum savings in income tax based upon each person or family’s situation.

Stoller explains enlisting for tax planning services can help minimize tax liabilities and maximize tax breaks in an efficient and legal manner. And with the rapidly changing tax landscape, Stoller acknowledges tax issues are getting intricate with time. With the numerous pending tax bills, handling tax issues don’t seem easy as future tax uncertainties loom. Therefore, families intending to pass substantial wealth to future generations should employ effective techniques with low-interest rates. Such techniques include intra-family loans and grantor retained annuity trusts (GRATs). However, taking your time and learning how to use the complicated tax rules to your advantage can significantly change what you pay or get back when you file your taxes.

Moreover, Stoller emphasizes knowing the difference between tax deductions and tax credits to help develop effective tax strategies that help reduce your tax bill. Tax deductions help reduce the amount of your income subject to tax, while tax credit helps reduce your tax bill. For instance, a $1,000 tax credit reduces your tax bill by $1,000. Also, knowing the available tax deductions and who qualifies for them can help you achieve maximum income tax savings by factoring in all deductions and tax credits you are eligible for. Stoller also reveals keeping a clean tax record can help in case of an audit.

Little known to many small business owners, independent contractors, and employees, sound tax planning can reduce the tax burden and cut down the business expenses through reimbursements and tax deductions. With health expenses being one of the concerns to every business owner due to the limited business owner’s expense deductibility under the commonly understood rules, Stoller explains some of the lesser-known tips to increasing the limits of medical insurance deductible to help cut down on health expenses through proper tax planning.

“Less commonly known and understood is Section 105 Medical Expense Reimbursement Plan (MERP), which allows one to write off medical bills as legitimate business expenses. Proper planning and structure are excellent and often overlooked mechanisms to absorb medical expenses in the most tax-efficient manner allowable,” Stoller revealed.

“If the above is a little too heavy to understand, simply put a MERP. It’s an accounting device that allows you to recharacterize your otherwise non-deductible family medical expenses into deductible business expenses. If structured properly, you can reduce self-employment taxes (if such apply to you) as well as business and personal taxes,” added Stoller.

However, this plan is only available for employees. Therefore, one must be registered as an employee to a business to qualify. That said, sole proprietors aren’t eligible for the package. But still, there’s a workaround for individually-owned businesses and partnerships. Stoller explains that a sole proprietor can hire a spouse as an employee and still benefit from the reimbursement plan. When it comes to employees’ and independent contractors’ tax compliance, Stoller emphasized sound tax planning than using illegal means to cut down on tax payable and later fall into fines and regrettable legal consequences. Although some businesses misclassify their employees as independent contractors to save on the tax burden on the payroll and benefits, this reckless act may land a business owner in dire trouble should the IRS uncover the misclassification, said Stoller.

Keith Stoller is a tax and finance expert with great passion and experience in guiding people to better tax and financial planning. Together with his team at Stoller Associates, he offers the best tax services tailored to meet individual customer needs. Stoller has helped hundreds in the state of California to get rid of their tax burden and experience freedom like never before.

Learn more about Stoller Associates through their business website and discover more about saving on your income tax.