5 reasons why you need a midyear tax assessment

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JULY 19 2021

Takeaway Tax

Paying taxes is a civic responsibility that allows governments to fund the services they offer to society. As Oliver Wendell Holmes Jr., former Associate Justice of the Supreme Court of the United States once said “I like to pay taxes, with them I buy civilization”. In the US, taxes are categorized in three different levels: federal, state, and local. On the one hand, local taxes are usually collected through rates and other property-based taxes. On the other hand, federal and state taxes are usually collected through individual income. According to Statista, in 2020 individual income taxes and payroll taxes were the highest earners for the government by far.

The importance of getting ahead

A mid-year assessment is a perfect time to review your taxes and determine the best action plan to meet your financial projections. It gives you time to prepare and organize all the necessary documents for your tax deductions.

What is a midyear tax assessment?

A midyear tax assessment is an internal audit that allows you to evaluate your current finances and, therefore, understand your situation regarding next year’s tax season. It is the best way to discover new liabilities and prepare in advance for your final tax filing.

What is tax liability?

Simply put, the tax liability is the amount of money that you owe to the government. It’s the total amount of tax that you are liable to pay to the tax authorities.

Benefits of conducting a midyear tax assessment

By conducting a midyear tax assessment you’ll be aware of your financial health. It’s an opportunity to monitor your current situation and be prepared for when tax season arrives. The main benefits of a midyear tax assessment are:

  • You’ll stay ahead of time and avoid stress when it’s time to file taxes
  • It’s an opportunity to discover new deductibles
  • Let’s you identify tax liabilities earlier and have time to address them
  • It’s a chance to reduce costs

Bearing this in mind, let’s review the top 5 reasons why you need a midyear tax assessment.

1. Compliance

Being prepared for the tax season assures you’ll have everything ready to pay your taxes on time. By doing so, you’ll avoid penalties and interest payments. Paying on time protects you from tax audits by the IRS and is good for your record. Keep in mind that if you don’t pay on time your credit score can be affected.

2. Planning can make you pay less

Tax planning is key, since you’ll be able to manage your finances and learn how to lower your tax liability. For example, contributing to a retirement account or claiming a home office deduction can help to lower your tax liabilities.

3. Creating tax shelters minimizes your liabilities

With a mid-year tax assessment, you’ll be able to plan a tax shelter and legally store your assets in order to minimize your tax liabilities. It gives you enough time to decide which kind of investment is the best for you.

4. Early advisory

Having a trustworthy tax partner is key for your mid-year tax assessment. At Takeaway Tax, you’ll find a team of professionals that can assist you with your mid-year tax assessment. Also, with early advisory, you’ll be able to legally move your income in order to lower your tax liabilities

5. Boost your tax refund

Are you aware you can maximize your tax return just by choosing the correct filing status? It’s important to stay ahead, choose an appropriate tax partner, and start working on your mid-year’s tax assessment. Now is the best time to do so!

How do I get started with Takeaway Tax Cares?

Tax filing might be daunting, however, we make it easy for you. Actually, we do it for you! It’s simple:

  1. Log into Takeaway Tax portal and create your portal
  2. Upload your documents
  3. Schedule your assessment with a TakeAway Tax Pro
  4. Enjoy tax savings and maximize your return!

Benefits of Takeaway Tax Cares?

  • No hidden fees
  • Upfront pricing within industry standards
  • Convenient and secure
  • Flexible to your needs
  • Experienced professionals
  • 50 years of combined industry experience

Do not be late! Start planning next year’s taxes now!