Wealth Creation

business tax planning

The Goal is to Increase Your Wealth Using a Team Approach!

Long ago I remember reading that the more laws that are written the more ways around those laws there are. Think about it. How many laws do we have in the United States. But it doesn’t follow that people accept those laws. Or at least the government’s application of the laws. In tax planning we do the very same thing without any motivation to break laws but to use them in a way that benefits our clients by reducing the taxes paid to the federal and state governments (and sometimes even local levels of government.) While tax reduction is a worthy goal it probably isn’t the final goal. Wealth creation and the utilization of your wealth are likely greater goals.

At Tax Planning IQ we utilize a team approach in helping you to create wealth. Our specialty is in the tax reduction part. We work with others to help you take that cash we’ve helped you to keep in your pocket and then leverage that new money into wealth.

So, what are the taxes that Tax Planning IQ is going to help you pay less of? Income taxes, employee Social Security taxes, and employer matching Social Security taxes. As an individual do you know how much you are paying every year in taxes? You need to know that and believe that you are overpaying. Or at least that you need to find out for sure if you are overpaying or not. In order to reduce your tax burden, you need to be not only convinced you are overpaying but motivated to act. So here is how you face the information about how much you paid last year in income and Social Security taxes. Ask yourself if you are going to be comfortable paying that much (at least) year after year. If yes, we can help. If no, then we can’t help

Step #1. Figure out how much tax you paid personally (for this example the numbers are random)

a.       Pull out your last year’s 1040 income tax return. Find the line labeled Income Tax.

For most look for at line 24 of your 1040                                                                              $  15,000

b.       Pull out your state tax return and look for a similar line                                           7,500

c.       Put out your W2 and look at lines 2 and 4 and add them together                      11,500


Total personal income and Social Security taxes                                                                   $37,000

d.       If you filed a Schedule C or had a 1065 add Self-employment tax from

Schedule SE                                                                                                                                     8,000

Total tax                                                                                                                                      $45,000


a.       If you are a business owner duplicate total tax from above                                $37,000

b.       Pull out your federal 1120 and add line 21 of form 1120                                       15,000

c.       Pull out your state corporate return and add total state income tax                     6,500

d.       From any W2 received from your business add boxes 2 and 4 from that W2      5,400

Total income and payroll taxes                                                                                               $63,900

So, who are the team members? They are independent business owners that are primarily insurance and investment professionals. There are other 3rd parties which would be needed in specific, unique situations.