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Tax Planning Attorney in Salt Lake City, Utah

Every year, individuals and corporations across the United States are required to prepare and file their income tax returns. Surprisingly, many taxpayers pay more than the required amount and miss possible tax benefits. However, with proper tax planning, you can lessen your tax burden and enjoy huge tax refunds. If you need assistance with tax planning in your area, it is beneficial to speak with a seasoned Utah tax law attorney for detailed guidance. 

At Common Law PC, we have the diligence and expertise to advise and guide clients in tax planning-related matters. As your legal counsel, we can analyze your financial situation and craft an effective tax planning strategy that allows you to pay the lowest taxes possible. In addition, our attorney will work diligently to help minimize your tax liabilities, optimize your financial goals, and maximize your tax returns. 

Common Law PC proudly serves clients across Salt Lake City, Utah, and the surrounding areas of St. George, Park City, Ogden, and Provo. 

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The Basics of Tax Planning 

Tax planning is the process of analyzing a person's financial situation and outlining an efficient plan to help reduce the tax burden and increase tax breaks in a legal manner. The purpose of tax planning is to help ensure that you're legally paying the lowest taxes possible. 

Understanding Utah's Tax Landscape 

If you live and earn in Utah, you're required to pay taxes. Here are some tax codes and rates in Utah: 

  • A flat 4.85% individual income tax rate. 

  • A flat 4.85% corporate income tax rate. 

  • A maximum local sales tax rate of 2.95%. 

  • A 6.10% state sales tax rate. 

  • An average combined local and state sales tax rate of 7.19%.  

If you need proper guidance with tax planning, you need to speak with a dedicated tax planning lawyer immediately. Your legal counsel can enlighten you about how to plan your taxes efficiently and help you navigate crucial decisions. 

Steps to Effective Tax Planning 

Here are some insightful tips to ensure effective tax planning: 

Understand Your Tax Bracket 

The first step to effective tax planning is to know your federal tax bracket. There are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your taxable income and filing status will determine the bracket you fall into. 

Prepare a Tax Strategy 

Prepare an efficient tax strategy that helps you save money and get the most out of your deductions. Also, an effective tax strategy can help reduce your tax bill, save money for other financial needs, and help you avoid possible tax penalties. 

Review Your Tax Plan 

Review your tax strategy, including short-term and long-term tax plans, regularly to identify and implement necessary changes. Also, this will help optimize your taxes and ensure that you're consistent with your tax goals. 

Watch Out for Tax Credits and Deductions 

There are several tax credits and deductions that you can always benefit from. These include adoption credits, charitable contributions, child care, home office expenses, and capital loss deductions. Taking advantage of these deductions and credits can help you save more on taxes. 

Document All Records 

Also, document all financial records to make it easier to prepare your taxes. Some important documents include income statements, receipts of all expenses, tax deduction records, and social security documents. With this, you can take advantage of all the deductions and tax benefits that are available to you. 

A trusted Utah tax planning attorney can draw up an effective short-term and long-term tax plan that fits your financial situation and determines how you can benefit from tax-advantaged accounts. 

Leveraging Tax-Advantaged Accounts 

Tax-advantaged accounts are savings accounts that allow taxpayers to reduce the amount of taxes they pay and increase their long-term savings. Some common examples of tax-advantaged accounts include: 

  • Traditional 401(k) plan 

  • Traditional IRA 

  • Roth 401(k) plans 

  • Roth IRA 

  • Education plans – 529 Plan 

  • Health plans, such as Health Savings Accounts (HSA) 

A practiced attorney can enlighten you about the benefits of each tax-advantaged account, determine your eligibility, and help you make informed decisions. 

Tax Planning Pitfalls to Avoid 

Here are some common pitfalls to avoid during tax planning: 

  • Waiting too long to develop a tax strategy 

  • Poor or inaccurate recordkeeping 

  • Missing investment income 

  • Not taking advantage of tax breaks 

  • Missing deadlines or filing late 

  • Failing to maximize retirement deductions 

  • Failure to track personal and business expenses 

  • Not having the necessary tax planning document 

However, by working with a reliable lawyer, you can avoid these common pitfalls and ensure proper tax planning. 

How an Attorney Can Assist You 

Proper tax planning allows you to create an effective strategy that can help reduce your tax bill. However, preparing a tax strategy often involves a lot of complex procedures and paperwork. Therefore, if you need help with tax planning, it is vital to speak with a dedicated tax planning attorney for detailed guidance and to help you navigate crucial decisions. 

At Common Law PC, we provide outstanding legal services and guide clients through the complexities of tax planning. Using our extensive knowledge, we can help create a well-detailed tax strategy that reduces your tax liability. Also, we will determine the right tax-advantaged account for you and help you benefit from tax credits, deductions, exemptions, and other available tax breaks. 

Tax Planning Attorney Serving Salt Lake City, Utah 

If you need proper guidance with tax planning, contact us at Common Law PC today to schedule a simple consultation. Our skilled attorney has the skill and advocacy you need in your tax planning matters. We proudly serve clients across Salt Lake City, St. George, Ogden, Park City, and Provo, Utah.