Most small business owners and near or retired individuals are the largest segment of people in the US that overpay in taxes. In fact, many small business owners are donating up to 48% of their tax money to the IRS and individuals can be as high as 30%. And, they don't even know it.
There are three areas that need to be considered when identifying if you are among those that are overpaying in taxes:
- Determine how much money you spend on your livelihood yearly, and if you are paying taxes on more than that dollar amount, you are most likely paying too much.
- Ensure that the proper tax entities are chosen for your business and that individuals are set up in the right qualified accounts that minimize tax obligations.
- Make sure that your cash flow management is tax efficient, so that expenses and charitable giving is deducted properly.
Quartermaster Tax Management works with those who are looking to not only grow the money they make, but keep it. Often financial advisors only look at the returns on investment, not on how much of that goes to the IRS. We make sure the investments that our clients make don’t adversely impact their taxes. For example, one of our clients came to us where they were paying 38.7% on dividends instead of the 15% they were obligated to pay. The biggest cause of this was the fact that their tax advisor and financial planner never even talked, let alone work together in the overall best interest of their client.
If you are concerned that you have been overpaying taxes, we invite you to have a quick conversation. Even if you already work with a CPA and/or Advisor, we are confident our call will help you understand your current situation and even uncover specific areas where you may be at higher risk.