Effective Tax Planning Strategies for Individuals and Businesses (Full Transcript)

Speaker 1: What strategies can individuals and businesses plan for effective tax planning throughout the year?

Speaker 2: They have very less amount of refunds, sometimes the clients they have to pay very huge amount of tax. How to plan your current year tax, you know tax returns? When they are filing the current year tax return next year, they can save lot of tax and they can get more refunds. If you buy those medicines through health saving account, it is better.

Speaker 1: What strategies can individuals and businesses plan for effective tax planning throughout the year?

Speaker 2: Basically the new clients which they come to us during tax season, sometimes clients they have very less amount of refunds, sometimes the clients they have to pay very huge amount of tax. So, we see that there is a lack of planning in individuals. So, you know when we are filing their taxes, we call our clients, we discuss the returns with them and also we tell them like how to plan your current year tax, you know tax returns. So, that when they are filing the current year tax return next year, they can save lot of tax and they can get more credits. Like I will give you one example, there is one thing called health saving accounts. Health saving account is basically you just deposit some money in that, you invest some money in that, and you will get deduction in your tax returns. Now, what is health saving account? I will just give you just a small example. There are lot of tax saving strategies, but I will just speak about this. Mostly people ignore this type of account, health saving account. In United States, people they go to pharmacy store. So, in pharmacy store they go and they buy some medicines, over the counter medicines without prescription. So, now as an individual, not just think that you don't have health saving account, as an individual if you go to the store, if you buy some over the counter medicines, you don't get deductions, nothing you will get. But if you buy those medicine to health saving account, it is beneficial for you, because you already got some deductions.