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Why There is No Such Thing as a One-Size-Fits-All Solution When It Comes to Tax Planning

Tax planning attorney

Tax planning is something all individuals and families need to do. Whether you’re planning on filing jointly with your spouse or individually, you should read up on tax laws and best practices as you get closer to tax day. If you make a mistake, that can backfire, if not with an audit, then with you missing out on some of the various benefits and loopholes of which you might take advantage.    

Getting in touch with a tax planning attorney often makes sense, especially if you don’t consider yourself an expert in this area. You should also not approach paying taxes as if there was a one-size-fits-all solution to this exceedingly complex process. We’ll talk about why that is right now. 

Everyone’s Situation is Different 

The first and probably most vital thing to keep in mind regarding paying your taxes is that each person’s situation is different. If everyone had the same type of job, the same living situation, the same number of dependents, and so forth, then a more homogenized way of doing your taxes would be a legitimate possibility. 

That is simply not the case, though. Each person has different factors that will play a part in how they prepare and pay their yearly income taxes. These differences are seldom small. One person’s tax burden might look entirely different from another, and the planning that goes into paying those taxes should reflect that.   

Your Tax Needs Might Change Year by Year 

It’s not even as though each individual’s tax burden and refund amount will be the same every year. They are liable to change, too. 

Often, that happens because of lifestyle changes. For instance, maybe one year you will not make as much money as you did the previous year. If you’re a business owner, for example, it’s illogical to assume that you will gross or net exactly the same amount of revenue in each calendar year. 

You might also inherit some money if a relative dies. It’s more than likely the government will consider that taxable income. You might go from working for a single company to working for several different entities as a freelancer. The increase in the number of your revenue streams won’t necessarily allow you to generate more income, but it will certainly make filing your taxes more complicated. 

It Pays to Have Someone Knowledgeable on Your Side 

Tax planning might be at the forefront of your mind, but even if you plan ahead and try to figure out the best way to file your taxes, there is no guarantee that you will be able to do so without making any mistakes. This is an area with so much complexity and so many moving parts that it’ is very difficult to ever call yourself an authority in it if it’s not your career. 

That’s why there’s no one-size-fits-all solution to tax planning, and there probably never will be. Hiring a tax attorney or a similar entity seems sensible when you look at this yearly responsibility.

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