What Is Involved in a Tax Planning Session?

If you've never participated in a formal tax planning session, you might be wondering what actually happens during the appointment. Many people assume it's just like their annual tax preparation meeting, but tax planning is fundamentally different and far more valuable when done before year-end.

Tax preparation looks backward at what already happened. Tax planning looks forward at what you can still control. While tax prep is about compliance and filing your return correctly, tax planning is about strategy and optimization. It's about making informed decisions now that will reduce your tax liability later.

So what exactly happens during a tax planning session? Let’s walk you through our process step by step.

Our Tax Planning Process

Our tax planning process begins with a one-on-one meeting to understand your goals and priorities. During this meeting, we will discuss your current financial situation, future plans, and any concerns you may have about taxes.

This initial conversation is essential because effective tax planning must be personalized. We need to understand not just your numbers, but your life. Are you planning to retire soon? Sell a business? Send a child to college? Buy a home? Each of these goals requires different tax strategies.

After we have a clear understanding of your objectives, we analyze your year-to-date income and deductions. This allows us to:

1. Prepare a Projection – We estimate your taxable income and tax liability for the year. Please note that projections include assumptions and are subject to change as your circumstances evolve.

2. Estimate Tax Due – Based on the projection, we calculate an estimate of the taxes you may owe.

3. Develop Strategies – We identify tax-saving strategies that could reduce or defer your tax liability.

Once our analysis is complete, we will communicate the results and recommendations to you. While we can provide expert advice and outline options, it is your responsibility to decide which strategies you want to implement and to take action on those decisions. As your CPA, we cannot make management decisions or take action on your behalf without your specific direction and authorization.

This collaborative approach ensures you have the information you need to make informed choices about your tax situation while maintaining full control over your financial decisions.

What Makes Fall the Ideal Time?

You might wonder why we're emphasizing Q4 for tax planning sessions. The timing is strategic for several important reasons:

Enough Data for Accuracy – With ten months of financial data, we can create realistic projections rather than rough estimates. We know what your income has been, what deductions you've taken, and what your year is likely to look like.

Enough Time to Act – With nearly three months remaining in the year, you have time to

implement the strategies we identify. Many tax-saving moves require time. You can't just flip a switch on December 30th.

Avoid the December Rush – By December, everyone is scrambling. CPAs are swamped, financial advisors are overwhelmed, and you're juggling holidays and year-end deadlines. Early fall gives you breathing room to make thoughtful decisions.

Better Decision-Making – When you're not rushed, you can carefully evaluate each recommendation and choose strategies that truly align with your values and goals, not just whatever sounds good in a panic.

What Types of Strategies Might We Discuss?

Every tax planning session is unique, but here are some common strategies we explore with clients:

For Business Owners:

• Strategic timing of income and expenses

• Equipment purchases using Section 179 or bonus depreciation

• Retirement plan contributions and optimization

• Entity structure evaluation

• Home office and vehicle deductions

• Year-end bonus planning

For Individuals:

• Retirement account contributions (IRA, 401(k), etc.)

• Charitable giving strategies

• Investment gain and loss harvesting

• Timing of major purchases or sales

• Estimated tax payment adjustments

• Withholding optimization

For Both:

• Health Savings Account (HSA) maximization

• Education expense planning

• Real estate transaction timing

• Estate and gift planning considerations

The specific strategies we recommend depend entirely on your unique situation, which is why that initial conversation about your goals is so critical.

What Should You Bring to Your Session?

To make the most of your tax planning appointment, come prepared with:

• Recent pay stubs or year-to-date profit and loss statements

• Information about any major financial changes this year (job change, business sale, inheritance, etc.)

• Planned major expenses or purchases before year-end

• Questions or concerns you have about your tax situation

• Previous year's tax return (if we didn't prepare it)

• An open mind and a willingness to discuss your financial goals candidly

The more complete information you provide, the more accurate our projections and the more tailored our recommendations can be.

What Happens After the Session?

After your tax planning session, you'll leave with:

A Clear Picture – You'll understand your projected tax liability for the year and won't be caught off guard in April.

Specific Recommendations – You'll have a list of actionable strategies, each explained clearly with its potential tax impact.

A Decision Timeline – You'll know which actions need to happen immediately and which can wait until closer to year-end.

Peace of Mind – You'll know you've done everything possible to optimize your tax situation. 

Remember, we provide the analysis and recommendations, but you make the final decisions. Some clients choose to implement every suggestion we make. Others pick and choose based on what feels right for their situation. Both approaches are perfectly fine. This is your financial life, and you're in control.

Common Questions About Tax Planning Sessions

How much can I actually save? This varies dramatically based on your income, current tax situation, and which strategies you implement. Some clients save a few hundred dollars; others save tens of thousands. We'll give you specific numbers during your session.

Is this just for wealthy people? Absolutely not. Tax planning benefits anyone who pays taxes. Whether you're a small business owner, a dual-income family, or an individual with a straightforward situation, strategic planning can help.

What if my situation changes after the session? That's normal! Projections are based on assumptions. If something significant changes, just reach out, and we can adjust the plan.

Do I need to commit to implementing everything you recommend? Not at all. You choose which strategies make sense for you. Our job is to present options; your job is to decide.

Why This Matters More Than Ever

Tax laws change constantly, and what worked last year might not work this year. The strategies available to you depend on current legislation, your personal circumstances, and timing. Without proactive planning, you might miss opportunities that could have saved you significant money.

More importantly, tax planning isn't just about saving money; it's about taking control. It's about making informed decisions rather than reactive ones. It's about moving through tax season with confidence instead of dread.

Take the Next Step

Understanding what's involved in a tax planning session is the first step. The next step is actually scheduling one.

We have limited appointments available for October and November. These sessions fill quickly because savvy individuals and business owners know that October planning beats April panic every single time.

Don't wait until December when options are limited and everyone is rushing. Don't wait until April when it's too late to do anything except write a check. Take control now while you still have time to make strategic moves that could save you thousands.

Your future self, the one filing taxes next April, will thank you for the action you take today.

Ready to schedule your tax planning session? Contact us today. We'll analyze your situation, identify opportunities, and create a clear action plan for optimizing your taxes. Reach out now to secure your spot.

Call us: (828) 570-5760

Email us: info@denisestubbscpa.com

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This blog post is provided for educational purposes only and does not constitute personalized financial, tax, or investment advice. Tax laws are complex, change frequently, and vary based on individual circumstances. Before implementing any strategies discussed, please consult with qualified financial advisors, tax professionals, or CPAs who can assess your specific situation. This content should not be relied upon as a substitute for professional consultation.