Tax Planning & Strategy

The difference between a good tax outcome and a great one is planning. At Johnson Tax & Accounting, we don't just file returns. We help you make strategic decisions throughout the year that directly reduce your tax burden.

Why Proactive Tax Planning Matters

Most people think about taxes once a year, in April, when it's too late to change anything. By then, the financial decisions that determine your tax bill have already been made. Proactive tax planning flips that script. Instead of reacting to your tax situation, we help you shape it.

Robert works with clients year-round to implement strategies that legally minimize tax liability. This isn't about aggressive loopholes. It's about making smart, well-timed decisions that the tax code was designed to encourage.

Estimated Tax Payments

If you're self-employed or have significant non-wage income, you're required to make quarterly estimated tax payments. Getting these wrong, whether paying too little or too much, costs you money. Underpay and you'll face penalties; overpay and you've given the IRS an interest-free loan. We calculate your estimated payments precisely based on your projected income, ensuring you pay exactly what you owe and not a dollar more.

Entity Selection: LLC vs. S-Corp

The structure of your business directly impacts how much you pay in taxes. A sole proprietor or single-member LLC pays self-employment tax on all net income, which is 15.3% on top of income tax. Electing S-Corp status allows you to split income between a reasonable salary (subject to payroll taxes) and distributions (which are not). For many business owners earning $60,000 or more in net profit, this election alone can save thousands annually. We analyze your specific numbers to determine whether an S-Corp election makes sense and when.

Retirement Account Strategies

Retirement contributions are one of the most powerful tax-reduction tools available. A SEP-IRA allows self-employed individuals to contribute up to 25% of net self-employment income. A Solo 401(k) can allow even higher contributions with both employee and employer components. We help you choose the right retirement vehicle for your situation and calculate the optimal contribution amount to maximize your tax savings without overextending your cash flow.

Timing of Income and Deductions

When you recognize income and when you take deductions can significantly affect your tax bill. If you expect to be in a lower bracket next year, it may make sense to defer income and accelerate deductions. If the opposite is true, the reverse strategy applies. We also help with bunching strategies, grouping deductible expenses into a single year to exceed the standard deduction threshold, and timing major purchases to optimize depreciation benefits.

Tax Planning FAQ