Personal Financial Planning

Do you want to manage your personal finances in Idaho Falls, but aren’t sure where to start? Would you like professional advice that can help you the most out of your finances, by creating a plan for your future? If you answered yes to either of these questions, then you are in the same boat that many Americans face these days. Whether you want to make a large purchase, save for retirement, or if an unexpected life event occurs, you want to be prepared. In today's economy it can be difficult to know how to create a solid personal financial plan, not to mention, all of the information available can be overwhelming to try to sift through. Why not save the headache and time, by having a professional help you with your personal financial planning? At Poston, Denney, and Killpack, PLLC, we want to give our clients the information that they want and the tools they need to create a personal financial plan that will be the best for their lifestyle. Below, you’ll find more information about why personal financial planning in Idaho Falls is vital to achieving your personal financial goals and tools to make the process just a little bit easier.

Why Is Personal Idaho Falls Financial Planning Important?

Creating a personal financial plan with a professional has numerous benefits that not only help to provide for your well-being, but the overall standard of living for your family. Some of the benefits that personal financial planning can provide, include:

Income and Cash Flow - Financial planning allows you to more easily manage your income and understand how much money you will need for things like, retirement, taxes, monthly expenditures, etc. By monitoring your income and spending habits, our Idaho Falls CPAs can help you design a budget to fit your life and goals.

Family Security - Making sure you have the proper insurance policies and coverage for your family can give you peace of mind.

Assets & Savings - Savings and assets provide a nice cushion for when emergencies occur. By hiring  Poston, Denney, and Killpack, PLLC, to create a personal financial plan, you will be able to plan for a lifetime of security.

Personal Idaho Falls Financial Tools

Organizing your Idaho Falls finances is one of the first things you will want to do when creating a personal financial plan for you and your family’s future. There are many online financial tools that can make organizing your finances a breeze. While we recommend going over your finances with a professional, these tools can make it easier to track your bills, student loans, and savings. Contact us today, to start creating a financial plan that is designed with your specific goals in mind. Organize your finances with the following tools:

Mint - Create budgets based on your spending, track and pay bills, and even check your credit score, when you sign up at Mint.com.

Shoeboxed - At Shoeboxed.com you can organize and digitize your receipts, without having to keep them in a literal shoebox.

Student Loan Hero - This site is designed to help you pay back those haunting student loans, fast and efficiently. Student Loan Hero allows you to track your loans and repayment efforts all in one easy to use interface.

Important Tax Planning Strategies

Nobody enjoys paying taxes. Our disdain for paying taxes is easily understood since taxes can prove to be one of the biggest expenses you will face over your lifetime. So when tax season does come around many people these days are scrambling to make ends meet. Even though we can’t avoid paying taxes, we can avoid the stress of owing money  by being prepared with a tax plan. Having an Idaho Falls tax planning strategy prepared by a licensed CPA can ease some of the stress when taxes come a-calling. Tax planning is a proven method to keep you from paying unnecessary taxes and by arranging your financial affairs in ways that can help to postpone and even avoid taxes. However, tax laws are more confusing than ever before, so many people don’t even know the first step in developing their own tax planning strategy. At Poston, Denney, and Killpack, PLLC, we can assist our clients in making smart choices for their financial future. Contact us today, so we can start creating the perfect tax plan for you.

Idaho Falls Tax Planning For Your Future

When planning for your future through tax planning, there are some basic strategies utilized by our licensed CPAs, these include but are not limited to:

Reducing Your Income - This tactic doesn’t mean making less money, it simply means reducing your AGI (Adjusted Gross Income) by investing money into a 401(k) or another similar retirement plan. You can also reduce your AGI by a variety of different income adjustments. Income adjustments include student loan interest paid, tuition and fee deductions, contributing to an IRA, moving expenses, self employment health insurance and more. Our CPAs can discover what types of adjustments you qualify for to save you the maximum amount of money on your Idaho Falls taxes.

Increase Your Withholding - Increasing your withholding means that more money will be taken out of your check throughout the year, but this is one way you can avoid owing money (and possibly getting a bigger refund) when tax season comes.

Increasing Your Deductions - Another key element in your Idaho Falls taxes to be aware of is your taxable income. Your taxable income is the amount of money left over after all of the deductions and exemptions have been taken out of your AGI. Many people can make basic deductions on their taxes, and some may even be able to itemize their deductions. Itemized deductions include gifts to charity, job related expenses, investment related expenses, tax preparation fees and more. Deductions and exemptions are determined by your filing status and any dependents you are claiming. One of the best ways to keep track of your potential deductions is by creating a spreadsheet for personal finance all year long.

Tax Credits - In a nutshell, tax credits can reduce the overall Idaho Falls tax you owe. These include college expenses, adopting children, and saving for retirement. Some people may qualify for credits like the Hope Credit, Lifetime Learning Credit, and the popular Earned Income Credit. At Poston, Denney, and Killpack, PLLC, we will be able to find what tax credits you qualify for and more when we design a specific tax planning strategy for you.

Financial Planning & Tax Preparation In Idaho Falls

Need help getting your taxes prepared and filed to the IRS? Poston, Denney, and Killpack, PLLC are the experts you can rely on for taxes in Idaho Falls.

We provide a number of tax services for individuals and businesses alike, including:

• Personal Financial Planning
• Estate Planning
• Elder Care
• Small Business Accounting
• Cash Flow Management

And more.

Sound Financial Planning to Maximize After-tax Income

If you want to get the most out of your taxes in Idaho Falls, it is imperative that you exercise sensible financial planning all year round. There are a number of areas in which good financial planning meets good tax planning in a way that helps people get the most out of both worlds. It is possible to maximize your after-tax income, it’s just a matter of taking advantage of all credits, deductions, and deferrals available to you.

By making use of these various options and requirements, other financial goals will be much easier to accomplish.

Idaho Falls Tax Planning Should Be a Year-Round Commitment

Not only will this help you stay out of trouble with the IRS, it will also help you get the most out of your income, allowing you to keep more of what you earn. Throughout the year, be sure to do the following:

Invest Your Tax Refund: An IRA is a wise place to invest your tax refund. Investors will often direct a percentage of their tax refund into an IRA as part of an investment strategy. They will then claim the deductions for next year’s tax time. When you invest your refund, you may get some of that back in your tax savings. This small step will yield long-term benefits.

Think a Few Moves Ahead: You may sometimes need to sell some of your investments. Whether it’s to re-balance your portfolio, or because your goals have simply changed, selling can potentially lead to taxes. That is why it’s important to choose what you are selling very carefully, in order to minimize your tax burden as much as possible.

Reorganize Your Investments: Your portfolio should be organized as wisely as possible in order to get the highest amount of growth for the least amount of taxes. For example, you will want to consider moving inefficient investments that are often taxed into a tax-deferred account (an IRA or a Roth IRA). Wise portfolio organization is one of the most important factors in financial planning for Idaho Falls taxes.

Learn How To Benefit from Your Losses: Always keep your portfolio balanced by replacing failing or slow-growing investments with better ones. Remember that it is possible to gain a tax deduction for your losses that will help make up for the taxes owed on the assets that have increased in value. This can be accomplished through a strategy known as “tax loss harvesting”.

Maintain Your Idaho Falls Tax Records

Keeping the proper documentation is imperative when it comes to Idaho Falls taxes. This will help keep you out of possible fines or penalties, as well as help you maximize your after-tax income. Keeping good records will make the entire process of analyzing and calculating your owed taxes much easier, and allows you a greater ability to report expenses that are tax deductible.

Make sure to keep your receipts organized in a secure folder. Other things you should be keeping include statements from:

-Banks
-Brokers
-Fund managers

And anyone else who provides financial information.

Get the Most Out of Your Personal Idaho Falls Tax Deductions

Getting the most out of your income means maximizing your personal tax deductions. The total amount of your tax deductions are subtracted from your taxable income, giving you your total tax bill.

As part of your Idaho Falls tax preparation habits, make sure to keep a detailed record of all deductible expenses, including keeping all receipts of tax-deductible expenditures in an organized folder, and recording gas mileage for business, medical, or charitable purposes. For owned or leased vehicles, this can include either the actual expenses, or the standard rate per mile.

There are many different expenses that can be deducted from your taxes that people often overlook, including:

Charitable contributions: Out-of-pocket charities can be written off, including the ingredients for food that is made for non-profit organizations such as food kitchens, or supply costs for school fundraisers.

Health insurance premiums: In some cases, you can deduct medical expenses that exceed 7.5 percent of your adjusted gross income.

Unusual business expenses: If your business can benefit from some special expenses, you can often write these off in your taxes. These expenses can include things such as animal food for junkyard owners who want to attract stray cats to feed on mice or rats, sunscreen protection for employees working at a car shop during the summer, or free gifts for customers.

Always keep an eye out for expenses you can write off on your taxes, and keep detailed records of them, including receipts.

Report All Idaho Falls Taxable Income

All income that is taxable needs to be reported on your tax return. Generally speaking, any amount of money that is included in your income is taxable with the exception of income that is tax-exempt by law. Non-taxable income may also need to be included on your tax return, although it will not be taxed.

The IRS understands that mistakes involving deductions and amounts can happen, and provides a number of ways to give citizens the chance to make up for these mistakes without unnecessary burden.

Failure to report income altogether, on the other hand, is a different matter. This situation can result in criminal charges for:

-Tax evasion

-Failure to report income

-Failure to supply information

Consistently reporting all taxable income will save you time, money, and energy in the long-term.