Let’s be honest: no one likes paying taxes. But you know what’s worse? Paying more than you actually owe...
If you’re a business owner, you work hard for every dollar. But if you’re not actively managing your tax strategy, you could be handing way too much to the IRS. And spoiler alert: they’re not going to send you a thank-you card for overpaying.
So, how do you know if you’re leaving money on the table? And more importantly, how do you fix it?
At Insogna CPA, a trusted CPA firm in Austin, Texas, we help business owners keep more of their hard-earned money with smart, proactive tax strategies. Let’s break down the top signs you’re overpaying in taxes and what you can do about it.
Signs You’re Overpaying in Taxes
If any of these sound familiar, you might be giving the IRS more than you should.
1. Your CPA Only Talks to You at Tax Time
If your accountant only pops up when it’s time to file, you’re probably missing out on tax-saving opportunities year-round.
Signs You’re Overpaying:
- Your CPA just inputs numbers instead of advising you on deductions and credits.
- You haven’t adjusted your tax strategy in years.
- No one is helping you plan ahead to lower your taxable income.
How to Fix It:
- Work with a small business CPA in Austin who meets with you regularly to optimize your tax plan.
- Ask your accountant about deferring income, accelerating expenses, and restructuring your business for tax efficiency.
Pro Tip: If your CPA isn’t proactively helping you reduce your tax bill, it’s time for an upgrade.
2. You’re Not Claiming R&D Tax Credits (Even If You Should Be)
Think R&D tax credits are just for tech startups? Think again. If your business is developing products, improving processes, or investing in software, you could be missing out on thousands of dollars in tax credits.
You Might Qualify If You:
- Develop new products or services (even if they don’t hit the market).
- Invest in software development or process improvements.
- Test new materials or manufacturing techniques.
How to Fix It:
- Track all expenses related to research and development.
- Work with an Austin tax accountant to see if you qualify for federal and state R&D credits.
Pro Tip: If you’ve never claimed R&D credits before, you might even be able to retroactively apply for past years and get a refund.
3. Your Business Structure Isn’t Tax-Efficient
Your business entity determines how much tax you pay and if you haven’t reviewed yours recently, you could be overpaying big time.
Common Overpayment Traps:
- LLCs overpaying self-employment taxes instead of electing S-Corp status.
- Sole proprietors missing out on deductions available to corporations.
- C-Corps not leveraging available tax credits and deductions.
How to Fix It:
- Meet with a CPA in Austin, Texas to review your business structure annually.
- If you’re an LLC, consider electing S-Corp status to reduce self-employment taxes.
- Explore multi-entity strategies to legally minimize taxes.
Pro Tip: As your business grows, your tax strategy should evolve with it. What worked last year might not be the best move today.
4. You’re Not Writing Off Home Office & Vehicle Expenses
If you work from home or use your car for business, you should be deducting those expenses. If you’re not? That’s money you’re giving away.
Deductions You Might Be Missing:
- Home office expenses (a portion of rent/mortgage, utilities, internet).
- Business mileage, gas, maintenance, and vehicle depreciation.
- Cell phone & internet costs if used for business.
How to Fix It:
- Track business mileage using an app to capture every deductible mile.
- Keep records of home office expenses for proper documentation.
- Work with an Austin accounting firm to ensure you’re maximizing these deductions correctly.
Pro Tip: If you use a dedicated space in your home for work, you might be able to write off a portion of your rent or mortgage.
How Proactive Tax Planning Saves You Thousands
Instead of scrambling at tax time, a solid tax strategy ensures you:
- Maximize deductions throughout the year—not just in April.
- Structure your business for tax efficiency as it grows.
- Leverage tax credits that most business owners miss.
- Optimize cash flow so you’re not overpaying quarterly taxes.
At Insogna CPA, we take a proactive approach to tax planning because waiting until tax season is too late to make big changes.
Final Thoughts: Take Control of Your Tax Strategy
Overpaying in taxes isn’t just annoying. It’s costing your business thousands of dollars that could be reinvested into growth.
The fix? Work with a CPA who doesn’t just file your taxes, but actively helps you reduce them.
At Insogna CPA, we help business owners:
✔ Identify missed deductions & tax credits
✔ Optimize their business structure for tax efficiency
✔ Develop a year-round tax plan to reduce liabilities
Take Control of Your Taxes Today
Stop overpaying! Schedule a tax review with Insogna CPA, your trusted Austin small business accountant, and keep more of what you earn!