Don't wait until April to think about your taxes. We provide year-round strategies to legally reduce your liability, optimize your income, and eliminate end-of-year surprises.
Proactive tax planning is the strategic, year-round analysis of a taxpayer's financial situation to minimize future tax liability. Unlike tax preparation, which reports history, tax planning shapes it. This process involves projecting annual income, timing large financial transactions, and maximizing contributions to retirement or savings vehicles before the tax year closes. The goal is to leverage every legal deduction, credit, and exemption available in the tax code to ensure you pay the lowest amount of tax required by law.
Our primary goal is to lower your effective tax rate. We analyze your marginal tax bracket to recommend specific actions—such as "bunching" charitable contributions or pre-paying state taxes—that push you above the standard deduction threshold. We also look for income-shifting opportunities, ensuring investment income is realized in years where your tax bracket is lower, directly preserving your wealth.
For business owners and freelancers, the "surprise bill" in April is a major pain point. We calculate precise quarterly estimated payments (Form 1040-ES) based on your real-time income, not last year's guesses. This ensures you meet IRS "Safe Harbor" requirements to avoid underpayment penalties while keeping cash flow in your pocket for as long as possible, rather than giving the government an interest-free loan.
We align your investment strategy with your tax return. This includes calculating the tax impact of Roth IRA conversions, advising on the timing of capital gains, and executing "tax loss harvesting" to offset gains with losses. We work in tandem with your financial advisor to ensure that your portfolio growth isn't eroded by unnecessary short-term capital gains taxes.
Tax planning is not just about the current year; it is about the next five. We create multi-year projections to help you decide when to recognize income or claim deductions. If you expect a higher income next year, we may advise deferring deductions to that year when they will be worth more. This long-term view helps navigate the Alternative Minimum Tax (AMT) and changing tax legislation.
Filing is Mandatory; Saving is Optional
Tax software and seasonal preparers focus on compliance—putting the right numbers in the right boxes. JK Tax Service focuses on strategy. By the time you sit down to file your return in April, the window to reduce your tax bill has already closed. We work with you throughout the year, identifying savings opportunities before the December 31st deadline, turning the tax code from a burden into a tool for wealth preservation.
Get StartedThe best time to start tax planning is at the beginning of the tax year, or immediately after a major life or financial change. Waiting until December leaves you with very few options, as most strategies (like setting up a 401k or deferring income) require time to execute before the year ends.
You can avoid the penalty by paying at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. If your Adjusted Gross Income is over $150,000, you must pay 110% of the prior year's tax. We help you calculate these "Safe Harbor" amounts exactly.
Tax loss harvesting is the practice of selling a security that has experienced a loss. By realizing this loss, you can offset taxes on both gains and income. The sold asset is then replaced by a similar one to maintain the optimal asset allocation and expected returns of your portfolio.
No. While high-net-worth individuals often have more complex needs, anyone with self-employment income, rental properties, or a growing family can benefit significantly. Simple strategies like optimizing Health Savings Accounts (HSAs) or education credits can save thousands for middle-income families.