Let’s face it: who doesn’t want to save more money when doing their taxes? Unfortunately, the process can often be confusing and lead to people wanting to get it done as soon as possible rather than searching for potential breaks. This can be especially stressful for those who need that money most, from those planning their retirement to the owners of their own business.
Luckily, you don’t have to figure it out by yourself. Seeking help from someone in the industry can clear up those murky tax waters and give you solutions you didn’t even know were available. This is especially true for professionals like Gabriel Shahin, the founder of Falcon Wealth Planning.
Gabriel Shahin has always had an interest in finance and has been working in the finance industry since he was only 18 years old. He founded Falcon Wealth Planning with one goal in mind: helping people manage their finances and positively impact their lives. His company specializes in retirement planning, financial planning, and tax planning.
As someone who has so much experience in the world of finance, Gabriel Shahin knows a thing or two about saving money during tax season. Keep reading to find out tips for how to save money in taxes, especially for retirees and business owners.
Saving Money in Taxes for Retirees
Saving money for retirement is essential. We work for so many years, so why shouldn’t we be able to enjoy those benefits later? Unfortunately, it is not always that simple. Here are some of the best tips for saving money in taxes for retirees.
Everyone knows about the importance of contributing to a 401(k). Funding comes directly from your paycheck, pre-taxes, and can even be matched by your employer. However, did you know that opening a Roth 401(k) can be even better? The main difference is that a Roth 401(k) is funded with post-tax money. You may take home a little less in your paycheck, but the money in your Roth 401(k) grows tax-free. Upon retirement, there are no taxes for withdrawals.
Another way to save money in taxes is to do your best to avoid the early withdrawal penalty. Any withdrawals from an IRA before age 59 and ½, and any withdrawals from a 401(k) before the age of 55, can result in a tax penalty of up to 10%. This penalty will be enforced unless you are using the money for a specific purchase, such as college or a large healthcare bill.
Saving Money in Taxes for Business Owners
Shahin shares these tips for business owners. Running a business can be expensive, so any assistance with taxes is vital. For example, did you know that travel expenses for a business purpose could be fully deductible? It’s all about asking the right questions and knowing your stuff! Here are some good tips for saving money in taxes for business owners.
- Set up a Health Savings Account (HSA) if you have a high-deductible insurance plan that is eligible. An HSA lets you put aside money for healthcare needs while also giving you a tax deduction for your overall business. You will not only reduce taxes but the potential cost of a medical emergency.
- Begin your retirement plan. Retirement plans for business owners are even available on the IRS website with advice for tax saving. While a 401(k) is typically matched by an employer, you can still save for retirement and earn tax benefits as a small business owner. This allows you to reap tax benefits as well as prepare for the future.
- Consider hiring a member of your family. After all, business is best kept in the family. The IRS allows some small business owners to reduce taxes when hiring their spouse and paying income to their children can either have a lowered or completely eliminated tax rate.
Save Money with Wealth Planning For The Future
When you’re looking to start saving money, you really can’t go wrong with finding a professional to guide you. Falcon Wealth Planning stands out due to the fact that they are fee-only, and do not earn commission by case. This gives them the freedom to conduct truly in-depth financial planning!
Here’s another financial tip from expert Gabriel Shahin: examine your tax situation when you are investing, because a Roth account may be more beneficial than a brokerage due to the possibility of being tax-free. The market is volatile, but that shouldn’t scare you away and can instead have big returns.
In the end, planning for the future is essential to retiring in style and leaving a successful business behind. Don’t hesitate to reach out to Gabriel Shahin to find out more about how you can save money in taxes.
Media Contact: Ray Bartolome
Company Name: Falcon Wealth Planning, Inc.