Individual Concierge Services
Quality over quantity. TaxCrunch is excited to announce our new platform for individual tax clients. We are no longer offering stand-alone tax returns - instead we're only focusing on full service concierge services for individuals.
Why?
- Tax season is the worst time to provide great personalized service. This is not intentional, it's simply a function of time (or lack thereof). Nearly all the work for an entire year is compressed into an 8-10 week period. Even with the best intentions, accounting firms fall short on following up, asking the extra questions, simply spending more time on the return to ensure we've maximized everything possible.
- Some tax returns are very basic - meaning the CPA doesn't actually add value - they simply prepare and file. Therefore, to balance these lower cost returns - the CPA firm needs...(you guessed it)...a ton of clients to meet their revenue goals. What happens when you have hundreds of returns to file at the same time in a short window of time? Mistakes, omissions, and an overall lower level of service. How will most CPA firms handle this high volume? Push down the work to staff, temporary seasonal help, or even send your returns to foreign countries for outsourcing. Recent surveys have shown over 40% of accounting firms send their work overseas!
- To overcome these issues, and focus on better service - we've developed the concierge platform. This allows us to spend extra time and attention on your account - all year round. We can focus on the tax clients that can utilize our expertise - and crave that extra attention. There are many, many options to file basic tax returns - but there are not many tax preparers that can afford time to really get to know their clients - and their unique situations. This platform will create this environment, and allow us to assign those resources to you.
What are the terms and services included in my concierge service?
- The concierge service is a one-year agreement. You'll be covered for 12 months following your sign-on date. At the end of the agreement, you'll have the option of repeating the process, with another one-year commitment, and so-on.
- The annual fee is $1,200. Once the engagement letter is signed, and the fee is paid - we're off and running. For the first go-round, we'll schedule a discovery meeting (in-person, Zoom, or phone) to uncover the areas that affect you - and any concerns or topics you'd specifically like to tackle. Then we'll develop a strategy and execute! You are free to check in with us anytime during the year with questions or new developments. We'll schedule quarterly check-ins to get updates.
- The topics we'll address will be specific to your situation. Here's a list of some of the more common areas we'll tackle together (if applicable to you):
Concierge Services:
- Individual Tax Return: This is the cornerstone. All the strategy, forecasting and implementation funnels into this final product. The annual concierge service includes one annual individual tax return preparation.
- Rolling Tax Forecasts: If needed, we can check quarterly or semiannually and run a current mock tax return to determine your tax liability at that moment. This comes in handy for adjusting employer tax withholdings - or making estimated tax payments if you're self-employed (or normally have tax deficits at year end). You never should be surprised when the tax return is prepared - we can control this result ahead of time.
- Retirement Planning: This is a big one. It accounts for the greatest potential tax savings/deferrals for most taxpayers. Let's analyze your employer plans, self-employment plans, individual Roth and traditional IRA's. What about those pesky back-door Roth IRA's? How much are you eligible to contribute? Based on criteria specific to you (age, remaining earning power, overall investment strategy, etc.) - how much should you be contributing?
- Stock Options: Let's navigate any options or company stock you may own, or may be receiving in the future. We can discuss tax consequences related to exercising and selling your options. You may feel a bit like the Gambler here - you have to know when to hold'em - and know when to fold'em. If you're getting in early to a start-up company, we can also see if the 83(b) election can be beneficial for your long-term success.
- Tax Harvesting: We'll brainstorm near year-end to determine if selling some investments will be beneficial to balancing any capital gains/losses you've already earned for the year. We'll check your actual realized gains/losses prior to year end, and work with your financial advisor if needed. Properly timed, this can create significant tax savings. If not addressed, investment trading can cause unexpected surprises when the tax returns are prepared.
- Crypto Currency: We'll answer common questions on how to track your activity, and report your dispositions. This investment has lured many investors - hoping for huge windfalls. Let's assess if you're positioned properly, based on your current overall financial position.
- Self-Employed Business Owners: If you're a sole-proprietor or single-member LLC, you'll be filing your business activity on Schedule C of your personal return. Let's make sure you know exactly what is deductible based on your industry. Auto expenses? Home office deduction? How about those items that can be a blend of personal & business? Maybe employing your children for super-sized tax savings? Thinking of selling your business? What are the tax implications?
- Rental Properties: If you personally own rental property, or hold the property in a single-member LLC, you'll be filing your rental activity on Schedule E of your personal return. Rental losses are attractive to many real estate investors - but the actual tax benefits vary greatly. If you're even contemplating disposing of a rental property - we should forecast the tax implications based on the anticipated proceeds. It may be possible to reduce capital gains tax by strategically selling other investments with losses, capturing unused rental losses from prior years - or maybe exchanging the property in a like-kind exchange.
- Social Security Planning: Let's break out those social security statements. Whether you're early in your earning years, or knocking on the door of retirement - it's never a bad idea to grasp your options. With a little planning and strategy, it may be possible to beef up those monthly retirement benefits. We'll consider this when projecting out your retirement scenario - which includes projecting all income sources balanced out against your anticipated golden years lifestyle. When should I start taking my social security benefits? Is it beneficial to still work after receiving social security?
- College Savings: The 529 plans have become popular savings tools. How prepared are you for your children's education needs? What about excess funds after college? Possible transfers to other recipients, or maybe take advantage of the new 2024 law allowing transfers directly to a Roth IRA.
- HSA Plans: Are you a good candidate for the high-deductible health savings account? Are you maxing out your tax-deductible contributions? Should you pay your medical expenses out of pocket, and let the HSA grow tax-free as a retirement supplement?
- Dependent Care: How employer dependent care benefits affect your tax credit, and are you eligible for any additional tax credit? Considering hiring a nanny or other household employee? We'll discuss your options on reporting and paying potential household employee taxes.
- Education Tax Credits: The AOTC (American Opportunity Tax Credit) and LLC (Lifetime Learning Credit) are great tax breaks. However, income limitations sometimes hamstring the tax credits for college parents. Are your children working during college? Let's explore if they're eligible to file independently, and capture those elusive tax credits on their own tax returns.
- Temporary Tax Credits: The tax code changes every year, and the tax credits available to you may come and go. Some expire, and some may be subject to income limitations. Whether it's residential energy improvements or electric vehicles - let's dig in and see if any current tax credits may be a match for you.
- Life Happens! Every taxpayer is like a snowflake - completely unique. Never blindly take advice from others, or expect the same tax breaks as someone else. The U.S. tax code can affect everyone differently - therefore you need customized service to ensure accurate tax planning & preparation - for you. Our concierge service is intended to conform to whatever your situation may bring. There are myriad of topics we can discuss: marriage, divorce, unemployment benefits, adoption, alternative minimum tax (AMT), marketplace health insurance tax subsidies, gambling income (losses), filing jointly versus separately....the list goes on and on.
The more I know about you, the more I can help you strategize your way to more tax savings - and ideally make better financial decisions. You can have a CPA resource in your personal corner - that you can freely contact as needed. If this sounds appealing, give us a call (616) 622-3535 or schedule an appointment!