Tax planning is fundamentally different from tax preparation. Preparation is looking backward at what happened. Planning is looking forward and making decisions that change the outcome. At Olivo & Company CPA, we believe in proactive consultation throughout the year so that by the time we file your return, the major decisions have already been made correctly.
Our planning approach.
Annual tax forecasting
At the beginning of each year, we project your expected tax liability based on current income trends, carry-forwards from prior years, and planned business activity. This eliminates surprises at filing time and informs your quarterly estimated payments.
Mid-year tax review
By summer, we have a clear picture of how the year is developing. We review actual income and expenses against projections and adjust the strategy if needed. This is where we catch issues while there is still time to act.
Year-end planning
Before December 31, we identify remaining opportunities: accelerating deductions, deferring income, making retirement contributions, and executing any year-end strategies that close after the calendar year ends.
Long-term tax strategy
For business owners, major decisions like entity structure, owner compensation, equipment purchases, and exit planning have multi-year tax implications. We provide guidance that looks beyond the current filing year.
Estimated tax planning
Self-employed individuals and business owners must pay estimated taxes quarterly. We calculate accurate payment amounts to avoid underpayment penalties while not overpaying and losing the use of cash unnecessarily.
Common questions.
When should I start tax planning for the year?
The best time is the beginning of the year, before income and deductions are locked in. The second-best time is mid-year. By November, most major planning opportunities have closed. We recommend scheduling a planning conversation in January or February and again in June.
How is tax planning different from just filing my return?
Filing a return records what happened. Tax planning changes what happens. A CPA who only sees you at filing time cannot change the decisions you made in the prior year. Tax planning works throughout the year so that by filing time, the liability-reducing decisions have already been made and executed.
Can tax planning help if I am self-employed?
Especially if you are self-employed. Self-employed individuals face both income tax and self-employment tax (currently 15.3% on net earnings). Good planning identifies retirement contribution strategies, home office and vehicle deductions, health insurance deductions, and entity structure options that can significantly reduce the total tax bill.