How Will You Celebrate National Tax Savings Day?

We view the annual tax return as a summary of previously made efforts and decisions.  After you implement proactive tax planning strategies, instead of getting shocked with the balance due presented on your tax return, you have the opportunity to reflect on the changes you made to control how much tax you did not overpay by using the legal opportunities presented to you through planning.  Does this feat deserve celebrating?  Of course, it does, especially when we are all seeking opportunities for positivity coming out of a pandemic!

I am sure you are well aware by now that the individual federal tax filing due date has been moved from the dreaded April 15th filing deadline until May 17, 2021 for your 2020 federal income tax return.  Don’t let this rain on your parade or go canceling the late-Spring outdoor northwest wedding-like reception due to the change in due dates.  In fact, you can relish in your achievements for an extra month before making the final timely payment for your 2020 federal taxes.  If tax deferment is your game, then you just scored a bonus, albeit about 30 days.

So just how much celebrating is in order this year?  One of the beauties of tax planning is that the results (a.k.a. your benefits) are actually quantifiable.  If you have access to a four-function calculator (you’ll probably just use two functions), you have all the tools you need.  Simply take the amount of total tax from your tax return prepared without implementing strategies and subtract the amount of total tax reported on your tax return that did use proactive tax planning strategies.  I’m not licensed as a financial planner, but my casual recommendation among friends would be to not use that result in its entirety as the budget for your National Tax Savings Day blowout.

Now that a semi-responsible budget has been established, the natural progression would likely be drafting the guest list.  Who would you invite to a celebration like this?  Surely, the ultra-fun, fact-finding, spreadsheet ninjas that provided you the tax-saving strategies would make the list, right…maybe a high-ranking alternate for last-minute cancelations?  That’s okay, we get it and we are okay being there when you need us most, even when that role is a last-minute fill-in.

Onto the venue – where would you place fun-loving, successful business owners who recognize value beyond settling for status quo?  It is unfortunate that we are not further along in our climb out of the pandemic environment, otherwise, we could have some extraordinary places to celebrate the savings while staying dry this time of year.  For now, we should probably keep it tame, possibly outdoors and definitely order in to help support the local restaurants that make the simple things taste so incredible.  Where I live, an outdoor tasting at a local brewery after riding single track in Black Diamond, Tiger Mountain or Carnation sounds like one way to celebrate and still keep our budget minded buddies back at the office happy that you are not blowing the tax savings on something irrational. 

I have been attempting to convince my wife for years that a larger boat would foster goodwill, survival skills for our children and provide health benefits with fresh, salt air.  She didn’t even respond to the concept that if we trailered it, it could serve a dual purpose as the “Boaterhome” and we could camp in comfort on the trailer when not using it on the water.  My mother-in-law understands it perfectly, but my wife is another story.  Fun fact, when properly equipped, boats (and other recreational vehicles) can qualify for the mortgage interest deduction).  My wife didn’t care about that “logical” reason either, even in a historically low rate environment.

However you decide to celebrate National Tax Savings Day, know that we are with you and appreciate your efforts and decision to not settle for the status quo.  If you are not celebrating National Tax Savings Day, this year, please do not be discouraged, just contact us to see how we can help you cut the line and get onto the invite list for the smaller, but still fun, Pay Less Estimated Tax Than Your Neighbor Day (a fun part is this one happens four times a year).

To get help with an IRS tax problem, or learn more legal, tax-saving strategies for business owners, contact me at (360) 474-5892 or e-mail me at tate@ensigncpa.com.