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Tax Planning and Documentation

Let’s be very honest on one thing, as much as we love our jobs, we all in some corner of our heart also think of early retirement. Personally, this thought crosses me every other day when I burn the midnight oil in my office to meet deadlines. Or when I put in overtime for my heartfelt wish to earn for my dream house in the Bahamas. Well, we all got our fair share of ambitions and hard work!


But I ensure my best shot on my dreams by planning and optimising my taxes in a way that it aligns with my ultimate financial goals. For you, these goals can be like higher education, car, foreign tour, making emergency funds etc. Accurate tax planning helps me retain more money legitimately and make better investment decisions and budgeting expenses. We try to save every penny in our lives, then why should taxes be an exception?

Applicable Taxes on Individuals in USA

    • Federal and State Income Tax
    • International Tax (in case you have income sources cross-border)
    • Taxes on royalties (for writers, music composers, etc)
    • Property tax
    • Taxes on capital gains

Advantages of Tax Planning

Based on your past financial records and income growth prospects your income in that particular tax year can also be determined almost accurately. This will allow you to calculate your taxable income as well and once the taxable income is ascertained, you can manage your investment plans and expenses for that year to reduce the taxable income. For example, if you get to know that there will be a 20% increase in your income, you will start putting more money in your pension funds.

Tips for Tax Optimization

Here are some suggestions to retain more of your income and optimise your taxes:


    • Municipal Bonds: Tax free interest payment makes them a worth considering. They are exempted from federal taxes, and in some states, even from state and local taxes as well. Though, these binds offer lower interest rates. 


    • Long-Term Capital Gains: Favourable treatment of long-term capital gain from the investment in shares, mutual funds, real estate, bonds, etc is the USP here. Professional tax advisors can assist you in selling these investments to reduce tax liability. 


    • Side Business: A side business offers many tax advantages. If utilised for daily business operation, the expenses can be deducted from income reducing taxable income like health insurance premiums. Further, under IRS guidelines, a business owner can deduct a portion of his home expenses as well.


    • Save via Retirement Accounts: For 2020, the tax liability can be reduced by USD 19,500 by contributing to a 401(k) plan or 403(b). People of 50 or above age can add USD 6,500 to the basic workplace retirement plan. Those who don’t have a provision of retirement plan at work can avail tax exemptions by contributing to an Individual Retirement Account (IRA).


    • Obtaining IRS Credits: Various IRS tax credits are available that reduce taxes, such as the Earned Income Tax Credit. People can avail it as per their social and economic status. For example, the low-income taxpayer not having children or people with three or more children or students. 

Common Tax Documentation Errors in the US

Do I need to mention that even a paltry, completely unintentional mistake in filing your tax forms can land you in some serious trouble of being audited or the least, late tax returns (which might affect your annual budget)? There is a very prevalent myth that “If I will file online, I can avoid all documentation and filing errors in my taxes”. Sorry, but that’s just not true!


Some common mistakes my clients made before me were like failing to attach Form 1099-R (for claiming retirement plans, annuities, etc), W-2 (if you are employed at 2 jobs) to mistakes like entering income in the wrong line. Some mistakes might even push your income to higher tax slabs or trigger tax audits, thus, it’s better to consult experts from the outset to avoid all the hassle.

USAIndiaCFO Advantage

An effective tax planner and investment advisor can help determine when and how to sell appreciated or depreciated securities to minimize gains and maximize losses. Tax-loss harvesting can also offset a capital gains tax liability by selling securities at a loss.


USAIndiaCFO is a confluence of Certified Public Accountants (CPAs) and other finance professionals with more than 8+ years of experience in the arena of taxation and finance. We have worked with some remarkable individuals including High Net Worth Individuals and Ultra High Net Worth Individuals, providing them with holistic and comprehensive tax solutions.  Our international presence and vast clientele speaks for itself.


To know more about on we assist you with your finances and taxes by our optimum and innovative solutions, give us a call on 7727887799 (also available on WhatsApp) or drop us an email containing your business requirements at and our team will reach out to you within 2 hours.

We can help you plan your taxes, along with providing a range of other services to take full accountability as your virtual CFO.


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