Tax planning for Fairview Park households and businesses

Tax planning means making decisions before December 31 instead of discovering what they cost in April. I look at where your year is heading and tell you what to adjust: your withholding, your estimated payments, your retirement contributions, or the timing of a big sale or purchase. I'm Tom Stephens, an Enrolled Agent in Fairview Park, and I enjoy explaining how the tax code affects you.

When tax planning is worth it

Planning pays most in a year when something changes:

A new job, a second job, or a raise that moves you into a higher bracket
Marriage, divorce, or a new baby
Buying or selling a house
Selling stock or cryptocurrency
Starting a business or a side business
Retiring, or starting Social Security
Moving to Ohio, and meeting city income tax for the first time

If none of that happened, a quick look when your return is done is usually enough.

Getting your withholding right

Owing a lot in April means too little was withheld. A big refund means too much was: it's your own money, returned without interest. Neither is a disaster, but both are worth fixing. A new W-4 for your employer, or estimated payments if you're self-employed, can bring the two closer together.

Contributions to a retirement account can lower this year's tax bill, and withdrawals later can raise it. Social Security can be partly taxable depending on your other income. I'll show you how your choices affect the numbers, so you can decide with the tax side in view.

Understanding your own taxes

Some people want their taxes done and never thought about again. Others want to understand them. Either is fine. One client came to me because she "wanted to better understand my taxes" as her career grew. Another wrote that she "got some good advice for next year".

I'll explain as much or as little as you want, in plain English. There's no quiz at the end.

Planning for business owners

If you're self-employed, planning covers estimated payments, expenses and records. The small business and self-employed page has the detail. Already behind with the IRS? Start with IRS letters and tax resolution.

What clients say

“I reached out to Tom for the first time this year after taking my taxes to another company. I wanted to better understand my taxes as I am now growing in my profession and career. Tom was very personable, professional and a pleasure to work with. I am glad I found him and trust him with his knowledge to handle my taxes. I would recommend him to anyone!”

Lindsy R. · BBB, March 2022

“You might initially be concerned about meeting a stranger at Panera and giving them every personal piece of information about you. However, this transaction was great! Everything followed the process as stated from the quick review time to a good amount of correspondence. I had my return done sooner than expected, got all of my documents back, got some good advice for next year, and it was over. I have no reason to look for another tax preparer. If you have questions about tax strategies, side hustles or other financial goals, you will be happy to work with Tom. Thanks for dealing with my last minute taxes!”

Catrina C. · Thumbtack, July 2020

Questions about tax planning

When is the best time for tax planning?

Before the year ends. Most of what changes your tax bill has to happen by December 31. By April, the year is over and the return mostly records what already happened.

Is tax planning separate from preparing my return?

It can be either. You can get advice for the year ahead when your return is done, or book a separate check-in after a big change such as a new job, a house or a business.

Will tax planning lower my taxes?

Sometimes. Other times it stops a surprise. The goal is that you pay your fair share and not a penny more, and that you know what's coming before April.