What is Tax Freedom Day? (The explanation by taxfoundation.org)
“Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. A vivid, calendar based illustration of the cost of government, Tax Freedom Day divides all federal, state, and local taxes by the nation’s income. “
For information on your state, take a look at this picture below.
We don’t know yet when will the 2014 Tax Freedom Day be, but I know for sure that the only way to legally minimize your tax liability is through careful planning. We get a lot of tax planning questions in December, and often it is too late to change anything by then.
For example, you only have until March 15th to make an S-Corp election after the beginning of the year, after that you’ll have to wait another year to make this decision, and you could end up paying more in taxes than you need to.
Another way to keep taxes in check is through regular tax projection throughout the year. It will not only save you money, but will also help you better manage your firm!
I encourage you to grab the opportunity early in 2014, and start managing your business using accurate financial information. After all, what you measure, you can manage.