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The 4th quarter of the year is the time to lower your taxes for next year, not on December 27th
People who are serious about not having to pay more taxes do this . . . . .
“They” tax plan. This is especially important for freelancers and digital nomads.
Lowering your taxes is not automatic, and it is not something you do when you prepare your taxes at the beginning of the year.
Upscaling your tax write-offs by just a little will not significantly reduce your tax liability.
Here’s what savvy tax planners do, when they don’t have a CPA or tax financial advisor.
They save as much of their profits as possible during the tax year.
In early October, they prepare a “dummy” tax return to see how much they might owe in the coming tax year.
If their dummy tax return reveals that the amount owed in taxes will be more significant than the already SE (self-employment) taxes they have paid quarterly throughout the year, then they know it is time to do something . . . . .
Savvy taxpayers realize that this is the time to spend a percentage of their annual savings on an asset for their business and place the asset into service before December 31st.
