Business CPA

Are You Paying More in Taxes Than You Should?

You built your business to have more freedom, more control, and more earning potential. But when tax season rolls around, does it feel like you’re handing too much of that hard-earned money to the IRS?

Here’s the thing: How you structure your income—whether as a W-2 employee, 1099 contractor, or an LLC with an S Corp election—directly impacts how much you pay in taxes.

If you’re:

• Paying a painful amount in self-employment taxes as a 1099 contractor
• Unsure if you should form an LLC or elect S Corp status
• Frustrated that other business owners seem to owe less at tax time

Then it’s time to take a closer look at how your income structure affects your bottom line. A few smart decisions now can mean thousands in tax savings every year.

Why This Happens: The Tax Difference Between W-2, 1099, and S Corp Income

When it comes to taxes, not all income is created equal. If you’re self-employed or running your own business, you need to know the key differences between W-2 wages, 1099 contractor income, and S Corp distributions.

Breaking Down the Tax Impact

If you’re earning 1099 income as a sole proprietor, you’re paying both the employer and employee share of Social Security and Medicare taxes—a total of 15.3% in self-employment tax, on top of your regular income tax. This adds up quickly.

For high-earning freelancers and consultants, switching to an LLC with an S Corp election can significantly reduce self-employment taxes and increase take-home income.

The Solution: Structuring Your Income for Maximum Tax Efficiency

If you’re a consultant, freelancer, or independent contractor, the best way to minimize taxes is to structure your income strategically. Here’s how:

1. Should You Stay a Sole Proprietor or Form an LLC?

If you’re just starting out and making under $50,000 annually, staying a sole proprietor might make sense for simplicity. However, as your income grows, an LLC provides liability protection and tax benefits.

✔ Who should consider forming an LLC?

• Freelancers earning over $50,000 annually
• Independent consultants working with multiple clients
• Business owners looking for legal protection

✔ What an LLC does for you:

• Separates business and personal assets for liability protection.
• Opens the door for S Corp election, which can reduce self-employment taxes.

2. When an S Corp Election Makes Sense

Once your income hits $75,000–$100,000 or more, switching from a sole proprietorship to an LLC with an S Corp election can result in major tax savings.

How an S Corp saves you money:
 ✔ You pay yourself a reasonable salary (subject to payroll taxes).
 ✔ Any remaining profits are taken as distributions, which are NOT subject to self-employment tax.
 ✔ You still deduct business expenses like a sole proprietor, but with added tax advantages.

Example:

• A sole proprietor earning $120,000 pays 3% self-employment tax on the full amount ($18,360 in taxes).
• An S Corp owner pays themselves a $60,000 salary and takes the remaining $60,000 as distributions. Self-employment tax only applies to the salary portion, cutting taxes significantly.

A tax advisor in Austin can help you determine the right salary and profit split to maximize savings without raising red flags with the IRS.

3. Optimize Tax Planning Year-Round

Structuring your income is just one part of the equation. To truly minimize taxes, you need a comprehensive tax strategy that includes:

 ✔ Quarterly estimated tax payments – Avoid IRS penalties and keep cash flow steady.
 ✔ Maximizing deductions – Business expenses, home office, retirement contributions, and health insurance can all lower taxable income.
 ✔ Retirement planning – A Solo 401(k) or SEP IRA can reduce taxable income while helping you build wealth.
 ✔ Tracking income and expenses properly – Using accounting software like QuickBooks and working with an Austin, TX accountant ensures compliance and maximizes deductions.

A small business CPA in Austin will make sure your LLC, S Corp election, and tax strategy are fully optimized for long-term savings.

Is It Time to Change Your Income Structure? Let’s Find Out.

If you’re still operating as a sole proprietor or filing taxes as a 1099 contractor, you could be paying thousands more in taxes than necessary.

At Insogna CPA, we help business owners in Austin, Texas, and beyond determine the best income structure for maximum tax savings. Whether you need help setting up an LLC, electing S Corp status, or creating a tax strategy that actually works, we’re here to help.

Let’s find the best structure for your business. Schedule a free consultation today.

..

Are You Paying More in Taxes Than You Should?

You built your business to have more freedom, more control, and more earning potential. But when tax season rolls around, does it feel like you’re handing too much of that hard-earned money to the IRS?

Here’s the thing: How you structure your income—whether as a W-2 employee, 1099 contractor, or an LLC with an S Corp election—directly impacts how much you pay in taxes.

If you’re:

• Paying a painful amount in self-employment taxes as a 1099 contractor
• Unsure if you should form an LLC or elect S Corp status
• Frustrated that other business owners seem to owe less at tax time

Then it’s time to take a closer look at how your income structure affects your bottom line. A few smart decisions now can mean thousands in tax savings every year.

Why This Happens: The Tax Difference Between W-2, 1099, and S Corp Income

When it comes to taxes, not all income is created equal. If you’re self-employed or running your own business, you need to know the key differences between W-2 wages, 1099 contractor income, and S Corp distributions.

Breaking Down the Tax Impact

If you’re earning 1099 income as a sole proprietor, you’re paying both the employer and employee share of Social Security and Medicare taxes—a total of 15.3% in self-employment tax, on top of your regular income tax. This adds up quickly.

For high-earning freelancers and consultants, switching to an LLC with an S Corp election can significantly reduce self-employment taxes and increase take-home income.

The Solution: Structuring Your Income for Maximum Tax Efficiency

If you’re a consultant, freelancer, or independent contractor, the best way to minimize taxes is to structure your income strategically. Here’s how:

1. Should You Stay a Sole Proprietor or Form an LLC?

If you’re just starting out and making under $50,000 annually, staying a sole proprietor might make sense for simplicity. However, as your income grows, an LLC provides liability protection and tax benefits.

✔ Who should consider forming an LLC?

• Freelancers earning over $50,000 annually
• Independent consultants working with multiple clients
• Business owners looking for legal protection

✔ What an LLC does for you:

• Separates business and personal assets for liability protection.
• Opens the door for S Corp election, which can reduce self-employment taxes.

2. When an S Corp Election Makes Sense

Once your income hits $75,000–$100,000 or more, switching from a sole proprietorship to an LLC with an S Corp election can result in major tax savings.

How an S Corp saves you money:
 ✔ You pay yourself a reasonable salary (subject to payroll taxes).
 ✔ Any remaining profits are taken as distributions, which are NOT subject to self-employment tax.
 ✔ You still deduct business expenses like a sole proprietor, but with added tax advantages.

Example:

• A sole proprietor earning $120,000 pays 3% self-employment tax on the full amount ($18,360 in taxes).
• An S Corp owner pays themselves a $60,000 salary and takes the remaining $60,000 as distributions. Self-employment tax only applies to the salary portion, cutting taxes significantly.

A tax advisor in Austin can help you determine the right salary and profit split to maximize savings without raising red flags with the IRS.

3. Optimize Tax Planning Year-Round

Structuring your income is just one part of the equation. To truly minimize taxes, you need a comprehensive tax strategy that includes:

 ✔ Quarterly estimated tax payments – Avoid IRS penalties and keep cash flow steady.
 ✔ Maximizing deductions – Business expenses, home office, retirement contributions, and health insurance can all lower taxable income.
 ✔ Retirement planning – A Solo 401(k) or SEP IRA can reduce taxable income while helping you build wealth.
 ✔ Tracking income and expenses properly – Using accounting software like QuickBooks and working with an Austin, TX accountant ensures compliance and maximizes deductions.

A small business CPA in Austin will make sure your LLC, S Corp election, and tax strategy are fully optimized for long-term savings.

Is It Time to Change Your Income Structure? Let’s Find Out.

If you’re still operating as a sole proprietor or filing taxes as a 1099 contractor, you could be paying thousands more in taxes than necessary.

At Insogna CPA, we help business owners in Austin, Texas, and beyond determine the best income structure for maximum tax savings. Whether you need help setting up an LLC, electing S Corp status, or creating a tax strategy that actually works, we’re here to help.

Let’s find the best structure for your business. Schedule a free consultation today.

..

Summary of What This Blog Covers

• Claim key deductions like home office, health insurance, and retirement contributions.
  
  
• Write off business tools including software, education, and subscriptions.
  
  
• Deduct eligible travel, meals, and utility expenses with proper documentation.
  
  
• Work with a CPA to stay compliant, file FBARs, and reduce your tax burden year-round.

You’ve stepped out on your own. You’re building something for yourself. You’ve got the clients, the freedom, the hustle and, if we’re being honest, the tax confusion that comes with it.

Sound familiar?

If you’re self-employed, you already know you don’t have a payroll department or HR team watching your back. You’re the CEO, the marketing department, customer service, and yes, your own accountant, whether you wanted to be or not.

But here’s the deal: there’s good news buried in the stress of tax season.

As a self-employed professional, you’re eligible for a wide range of tax deductions that W-2 earners can only dream about. The key is knowing what to claim, how to document it, and when to get expert guidance because let’s face it, nobody wants a love letter from the IRS asking questions about that mysterious “office chair” you bought at midnight on Amazon.

Let’s break down the seven most essential tax deductions for self-employed professionals—the ones that can actually move the needle on your tax liability—and how to take full advantage of them without leaving money on the table.

1. The Home Office Deduction: Your Living Space Can Be a Tax Asset

Think working from home is just a pandemic-era perk? Not even close.

If you use part of your home exclusively and regularly for business, you’re likely eligible for the home office deduction. And before you worry—yes, it’s a real, legitimate deduction recognized by the IRS. And no, claiming it doesn’t automatically trigger an audit, as long as you’re doing it right.

What Qualifies:

• A dedicated workspace used only for business
  
  
• Must be your primary place of business, meaning where you do most of your admin, planning, or client work
  
  
• Could be a spare room, a finished basement, or even a converted garage
  
  

Two Methods to Calculate:

1. Simplified Method – $5 per square foot, up to 300 square feet
   
   
2. Actual Expense Method – Proportion of total home expenses (rent/mortgage interest, utilities, insurance, internet, etc.)
   
   

Pro Tip:

The actual expense method can save more if you have a larger space or high rent. But it requires detailed documentation. That’s where a certified public accountant near you earns their stripes by helping you make the smarter choice and backing it with clean records.

2. Health Insurance Premiums: Protect Your Health and Your Taxable Income

You’re responsible for your own health insurance now, which can be expensive. The upside? If you qualify, those premiums are tax-deductible.

What You Can Deduct:

• Monthly health, dental, and long-term care insurance premiums
  
  
• Coverage for yourself, your spouse, and dependents
  
  
• Contributions to a Health Savings Account (HSA) for high-deductible plans
  
  

Eligibility Rules:

• You must be self-employed and not eligible for a subsidized employer plan (even through your spouse)
  
  
• The deduction only applies if you had net business income for the year
  
  

Common Mistake:

Trying to deduct premiums while your spouse’s employer plan is available. That’s a no-go. This deduction is powerful, but it comes with guardrails.

Why You Need a Tax Advisor:

A qualified Austin, Texas CPA or licensed CPA near you can help you structure your health coverage and optimize tax-saving options like HSAs, ensuring you claim everything you’re entitled to without stepping over the line.

3. Retirement Contributions: Build the Future While Cutting Taxes Today

You might not have a company-sponsored 401(k), but as your own boss, you can create one and benefit from it both now and decades from now.

Top Options for the Self-Employed:

• Solo 401(k): Designed for individuals with no employees (except a spouse). Allows contributions as both employer and employee. Contribution limits can exceed $60,000 per year depending on income.
  
  
• SEP IRA: Simple to set up and flexible. Employer-only contributions up to 25% of your net income.
  
  
• Traditional IRA or Roth IRA: Good for supplemental savings. Traditional reduces taxable income; Roth grows tax-free.
  
  

Why This Matters:

Every dollar you contribute (in a qualified plan) can lower your taxable income today. That means you’re investing in your future while keeping more of your money in the short term.

Real Talk:

Too many self-employed professionals wait until they’re making “real money” to think about retirement. Don’t. Start now, even with small contributions. Your Austin small business accountant can help you set it up quickly and legally.

4. Software and Subscriptions: Every App, Tool, and Login Counts

That monthly charge for your CRM? The Adobe suite you use for design work? The project management tools that keep your clients on track?

They’re not just operational necessities, they’re business expenses. And they’re deductible.

Commonly Missed Software Deductions:

• QuickBooks, FreshBooks, Xero (yes, even your accounting software)
  
  
• Marketing platforms like Mailchimp, ConvertKit, Buffer
  
  
• Design tools like Canva, Adobe Creative Cloud
  
  
• Time-tracking or invoicing apps like Harvest, Toggl, Dubsado
  
  
• Cloud storage, password managers, file-sharing tools
  
  

Common Mistake:

Forgetting about auto-renewing subscriptions. They may be small individually, but together they can easily exceed $2,000 annually.

How Your CPA Helps:

A certified CPA near you will help categorize these correctly in your books, ensuring you don’t miss out on hundreds or thousands in deductions just because they slipped past your bank feed.

5. Professional Development & Education: Grow Smarter And Save While You Do It

You’re sharpening your skills. Reading. Attending webinars. Joining business coaching groups. If it’s helping you professionally, it may be deductible.

What Qualifies:

• Courses and training directly related to your current business
  
  
• Conferences, seminars, and industry-specific workshops
  
  
• Subscriptions to trade journals or digital learning platforms
  
  
• Coaching programs or group masterminds with a business purpose
  
  

What Doesn’t Qualify:

• A yoga class, unless you’re a yoga instructor
  
  
• A new career course unrelated to your current income stream
  
  

Pro Strategy:

Make sure the course connects directly to your existing work. Your Austin accounting service can help you link the expense to your business activities for IRS approval.

6. Business Travel and Meals: Take That Client Meeting Then Take the Deduction

Traveling for business? That weekend flight to San Francisco for a branding retreat or client visit might be deductible if handled correctly.

What You Can Deduct:

• Flights, hotels, rental cars
  
  
• 50% of business meals (client dinners, team lunches, travel days)
  
  
• Rideshares and taxis to and from meetings
  
  
• Tips, baggage fees, and parking for business-related trips
  
  

What You Can’t Deduct:

• Pure vacations (even if you did one call from the pool)
  
  
• Meals with friends that don’t involve business
  
  
• Personal expenses during a work trip
  
  

Your Tax Pro’s Role:

Your Austin tax accountant or CPA in Austin, Texas helps you track, allocate, and justify your expenses correctly. IRS scrutiny on travel deductions is common so don’t just keep the receipts, keep the documentation.

7. Phone and Internet Bills: Yes, That Zoom Call Is a Write-Off

It’s 2025. If you’re not using your phone and internet for business, are you even working?

But just because you use it doesn’t mean you can write off the full bill. You need to determine the percentage of use that’s business-related.

Common Examples:

• 60% of your internet use is for client meetings, emailing, file transfers
  
  
• 80% of your mobile phone use is business-related
  
  
• A second line or VoIP number is 100% deductible
  
  

IRS Guidance:

Be reasonable. Document your estimates with sample usage logs. Your certified accountant near you can help establish a defendable method.

Bonus Deductions You Might Be Missing

Want to go a level deeper? Here are a few deductions that often fly under the radar:

• Bank and merchant processing fees (Stripe, Square, PayPal)
  
  
• Business insurance premiums
  
  
• Professional license fees and industry dues
  
  
• Advertising and promotional costs (social media ads, branded materials)
  
  
• Contract labor or virtual assistants
  
  
• Legal and CPA fees (yes, hiring a tax preparer near you is deductible)
  
  

Don’t Forget: FBAR Filing for Foreign Accounts

Got more than $10,000 in total across foreign bank accounts even for a day? You’re required to file an FBAR.

This applies if you:

• Own crypto or stock trading accounts abroad
  
  
• Have joint accounts with family members overseas
  
  
• Run part of your business on an international platform
  
  

The penalties for missing FBAR filing are steep and the IRS is watching.

Work with an Austin CPA firm experienced in FBAR filing to make sure you stay compliant.

Final Thoughts: Partner With a Tax Pro Who Plans With You, Not Just Files for You

Every year, we meet smart, successful entrepreneurs who still feel behind when tax season rolls around. Why? Because they’ve been working with tax preparers who only show up at the eleventh hour.

That’s not how wealth is built.

At Insogna CPA, we believe in year-round partnership. That means:

• Monthly and quarterly check-ins to track income and expenses
  
  
• Real-time tax projections based on your actual performance
  
  
• Proactive deduction planning
  
  
• Support with structuring your business for long-term tax efficiency
  
  
• Navigating FBARs, estimated taxes, and advanced strategies
  
  

If you’re looking for a CPA firm in Austin, Texas that feels more like a growth partner than a tax form factory, you’re exactly where you need to be.

Take Action: Build a Tax Strategy That Puts You in Control

You didn’t go solo to spend your nights trying to decode IRS rules.

You started your business to serve people, create value, and build freedom. Let us help you keep more of what you earn with clarity, strategy, and year-round support.

Schedule a consultation with Insogna CPA, your trusted Austin accounting firm.

We’re here to simplify the complex, spot what you’ve missed, and make sure next tax season is smooth, strategic, and free of surprises.

..

The Problem: Tax Bills Keep Catching You Off Guard

You’re growing your business, closing deals, and keeping operations running smoothly. But when tax season rolls around, you’re blindsided by a bill that’s bigger than expected. You scramble to figure out what went wrong—why the numbers don’t match what you thought—and suddenly, you’re dipping into cash flow to cover a shortfall you didn’t see coming.

Sound familiar?

• You don’t know exactly what you owe until tax time, and it’s always more than you expected.
• You realize too late that you missed deductions that could have saved you thousands.
• You wonder if you’re paying more than you should be, but your tax strategy (if you even have one) feels like guesswork.

This isn’t just frustrating. It’s unnecessary. Smart tax planning eliminates surprises, keeps more cash in your business, and puts you in control.

Why This Happens: Taxes Aren’t a Priority Until They Become a Problem

Most business owners focus on revenue, operations, and growth as they should. But that often means taxes are an afterthought until the bill is due. And by then, it’s too late to do anything about it.

Here’s what’s likely throwing you off course:

• You’re not tracking income and expenses in real time, so your tax liability is a moving target.
• You’re not making accurate quarterly tax payments, which leads to penalties and a lump sum due in April.
• You’re missing out on tax-saving strategies that could be legally reducing what you owe.

If you’re only thinking about taxes when they’re due, you’re reacting instead of planning and that’s costing you money.

The Solution: A Proactive Tax Plan That Puts You in Control

You don’t have to settle for last-minute tax panic. With the right strategy, you can control your tax bill, avoid surprises, and keep more money in your business.

Here’s how:

1. Track Income and Expenses in Real Time

If your books aren’t up to date until tax season, you’re running your business blind. When you stay on top of your financials, you can:
 ✔ Always know your tax liability.
 ✔ Spot tax-saving opportunities before it’s too late.
 ✔ Make informed decisions about spending, investments, and growth.

How to Make It Happen:

• Use QuickBooks Online, Xero, or another cloud-based system to automate tracking.
• Sync business bank accounts and credit cards for real-time visibility.
• Work with an Austin tax accountant who helps you review financials and adjust your strategy throughout the year.

If you know your numbers, you know your tax situation before the IRS tells you.

2. Pay Quarterly Taxes the Right Way (and Stop Guessing What You Owe)

The IRS expects quarterly tax payments, and underpaying can lead to penalties. But most business owners don’t set aside enough because they’re estimating blindly.

How to Avoid Penalties and Surprises:

 ✔ Work with a CPA in Austin, Texas, to calculate accurate estimated payments.
 ✔ Set aside 25-30% of your income in a separate tax account.
 ✔ Adjust payments each quarter based on real numbers, not estimates.

If you plan for tax payments throughout the year, you’ll never get caught off guard by a big bill.

3. Use Smart Tax Strategies to Reduce What You Owe

Taxes aren’t just about paying on time. They’re about paying less by structuring your business and finances efficiently.

A small business CPA in Austin can help you:
 ✔ Maximize deductions—home office expenses, mileage, marketing, and professional services.
 ✔ Leverage tax-efficient business structures—an S Corp, for example, can reduce self-employment taxes.
 ✔ Time major purchases strategically—certain equipment and investments qualify for immediate write-offs.

The tax code is designed to reward businesses that plan ahead but if your CPA isn’t helping you find these opportunities, you’re overpaying.

4. Work with a CPA Who Helps You Plan, Not Just File

A CPA shouldn’t just show up when it’s time to file your return. They should be an active part of your financial strategy, helping you make smarter decisions year-round.

At Insogna CPA, we:
 ✔ Monitor your financials in real time, so you always know where you stand.
 ✔ Identify tax-saving opportunities before deadlines pass so you’re never leaving money on the table.
 ✔ Help you stay compliant with quarterly tax payments so penalties and surprises are a thing of the past.

The result? You stay ahead of your taxes, keep more of your money, and never have to guess what you owe.

Tired of Tax Surprises? Let’s Take Control Together.

You’ve worked too hard to let tax mistakes and last-minute surprises drain your profits. A proactive tax plan means fewer headaches, lower taxes, and more control over your financial future.

At Insogna CPA, we help business owners in Austin, Texas, and beyond stay ahead of their taxes with real-time insights, quarterly planning, and tax strategies that actually save money.

Let’s take tax stress off your plate. Schedule a strategy call today.

..

Self-Employed? Here’s How to Take Control of Your Taxes

Being your own boss is great until tax season rolls around and you’re staring at a massive bill, wondering how you got here.

If you’re self-employed, a freelancer, or a 1099 contractor, your taxes don’t work like they did when you had a W-2 job. No one is withholding taxes for you, which means it’s all on you to pay what you owe—on time and in full.

The good news? With the right strategy, you can avoid IRS penalties, lower your tax bill, and keep more of what you earn.

At Insogna CPA, a leading Austin, Texas CPA firm, we help self-employed professionals understand their tax obligations, maximize deductions, and avoid surprises. Let’s break it down.

W-2 vs. 1099 Income: What’s the Difference?

When you were a W-2 employee:

• Your employer withheld income tax, Social Security, and Medicare from every paycheck.
• You got a W-2 at the end of the year and maybe even a refund.

When you’re self-employed (1099 income):

• No taxes are withheld. You have to pay them yourself.
• You owe both income tax and self-employment tax.
• You need to make quarterly estimated tax payments or risk IRS penalties.

Key takeaway: You’re still responsible for paying taxes, but now, it’s up to you to calculate, file, and pay on time.

How Self-Employment Taxes Work (And Why They Feel So High)

As a self-employed professional, you don’t just pay income tax. You also owe self-employment tax, which covers Social Security and Medicare.

Self-employment tax is 15.3% of your net income:

• 4% goes toward Social Security
• 9% goes toward Medicare

Why is it so high? When you had a W-2 job, your employer covered half of these taxes. Now, as your own boss, you’re paying both the employer and employee portions.

Example: If you make $100,000 in profit, your self-employment tax alone is $15,300 before you even pay income tax.

How Insogna CPA Helps:

• We calculate how much you actually owe, so there are no surprises at tax time.
• We structure your income to lower your self-employment tax legally.

You can’t avoid taxes, but you can reduce what you owe.

How to Avoid IRS Penalties: Paying Estimated Taxes

Unlike W-2 employees who have taxes withheld automatically, self-employed professionals must pay taxes quarterly.

IRS Estimated Tax Payment Deadlines:

• April 15 (Q1 Payment)
• June 15 (Q2 Payment)
• September 15 (Q3 Payment)
• January 15 (Q4 Payment)

Miss a payment? You could face penalties and interest even if you pay in full later.

How to Calculate Estimated Taxes:

• A good rule of thumb: Set aside 25-30% of your income for taxes.
• Use IRS Form 1040-ES or work with a CPA in Austin, Texas to calculate how much to pay.

How Insogna CPA Helps:

• We estimate your quarterly taxes based on real numbers, not just guesses.
• We set up an automated tax payment plan, so you never miss a deadline.

Don’t wait until tax season. Plan ahead.

How to Lower Your Tax Bill: Deductible Expenses

The best way to reduce your taxable income and pay less in taxes is by claiming every deduction you’re entitled to.

Common Self-Employment Tax Deductions:

• Home Office Deduction – If you work from home, a portion of your rent, utilities, and internet may be deductible.
• Business Travel & Meals – Flights, hotels, and business-related meals are deductible.
• Marketing & Advertising – Website costs, social media ads, and branding expenses.
• Software & Subscriptions – QuickBooks, Zoom, CRM software, and project management tools.
• Health Insurance Premiums – If you’re self-employed, your health insurance may be deductible.

Pro Tip: Keep detailed records and receipts to back up your deductions. The IRS loves documentation.

How Insogna CPA Helps:

• We ensure you’re claiming every deduction possible.
• We help set up proper expense tracking so nothing slips through the cracks.

Tracking your expenses means paying less in taxes.

Want to Pay Less in Taxes? Here’s What to Do Next.

1. Estimate your quarterly taxes – Set aside 25-30% of your income and pay on time.
2. Track all your expenses – Use QuickBooks or other accounting software.
3. Consider an S-Corp election – If you’re making over $75,000, an S-Corp could cut your self-employment tax.
4. Work with a CPA – A tax pro can find deductions you didn’t even know existed.

At Insogna CPA, we specialize in helping self-employed professionals keep more of their money.

Want help getting ahead of your tax obligations? Insogna CPA is here for you. Schedule a consultation today.

..

Taxes are one of the few guarantees in business but how much you pay is not set in stone. The right tax strategy can mean the difference between keeping more of your hard-earned money or overpaying year after year.

Yet, too many business owners treat taxes as a once-a-year headache, scrambling in April, wondering why their bill is so high, and realizing too late that they could have done something about it.

If that sounds familiar, it’s time to stop reacting to taxes and start planning for them. A well-executed tax strategy isn’t just about compliance. It’s about maximizing profits, improving cash flow, and making smarter financial decisions all year long.

Here’s how a seasoned entrepreneur like you can take control of tax planning and pay less without cutting corners.

1. Stop Guessing and Know What You Owe Before Tax Season Hits

If you don’t know where you stand financially until your CPA files your return, you’re setting yourself up for surprises.

Tax planning starts with visibility. The more accurately you track your income and expenses, the easier it is to anticipate your tax liability and adjust throughout the year.

How to stay ahead:

• Use cloud-based accounting software like QuickBooks or Xero to track numbers in real time.
• Sync business bank accounts and credit cards to automate financial reporting.
• Work with an Austin tax accountant who provides ongoing financial insights, not just year-end tax prep.

When you know what’s coming, there’s no scrambling, no surprises—just smart planning.

2. Pay Your Taxes in Installments (and Avoid a Huge Bill in April)

The IRS expects business owners to pay taxes quarterly, not just at year-end. If you’re waiting until April to settle up, you’re either underpaying and risking penalties or overpaying and tying up cash unnecessarily.

How to make estimated tax payments work for you:

• Set aside 25-30% of your income in a dedicated tax account.
• Work with a CPA in Austin, Texas to calculate accurate quarterly payments.
• Adjust payments based on real numbers, not estimates, so you never overpay or underpay.

A solid tax plan means no unexpected bills and no penalties—just a steady, predictable approach to managing tax obligations.

3. Deduct Every Eligible Business Expense (Because It’s Your Money)

One of the easiest ways to reduce your tax bill is to claim every deduction you’re legally entitled to. The problem? Too many business owners don’t track expenses properly or don’t realize what qualifies.

Deductions every business owner should be using:

• Home Office Deduction – If you work from home, a portion of your rent, utilities, and internet may be deductible.
• Business Mileage – If you drive for work, you can deduct the IRS mileage rate (67 cents per mile in 2024).
• Professional Services – The money you pay your Austin CPA firm, attorneys, and consultants is tax-deductible.
• Marketing & Advertising – Social media ads, website costs, and branding efforts are all fully deductible.
• Software & Subscriptions – If your business runs on QuickBooks, CRM software, or industry-specific apps, those are deductions too.

How to make sure you don’t miss deductions:

• Use business credit cards for all deductible expenses to track spending.
• Keep digital records of receipts so everything is documented.
• Have a small business CPA in Austin review your books regularly to find deductions you might have missed.

If you’re not tracking expenses, you’re overpaying—plain and simple.

4. Invest in Retirement (and Lower Your Tax Bill at the Same Time)

One of the smartest moves a business owner can make? Contributing to a retirement account that lowers taxable income while building long-term wealth.

Retirement plans with tax advantages:

• Solo 401(k) – Allows tax-deferred savings for business owners with no employees.
• SEP IRA – A great option for small business owners, allowing large contributions based on income.
• SIMPLE IRA – Ideal for small businesses that want to offer employee retirement benefits.

A tax advisor in Austin can help you choose the best retirement plan to lower taxes now and secure financial stability for the future.

5. Use Tax Deferral Strategies to Keep More Cash in Your Business

Sometimes, when you earn money is just as important as how much you earn. Smart entrepreneurs time their income and expenses strategically to reduce taxable income in high-earning years and defer taxes when possible.

How to defer taxes legally:

• Delay invoicing at year-end to push taxable income into the next year.
• Prepay expenses like rent, marketing, or equipment to increase deductions in high-income years.
• Use Section 179 to write off the full cost of business equipment purchases immediately, rather than depreciating over time.

A smart tax plan helps you keep more cash in your business—where it can work for you.

6. Work with a CPA Who Does More Than Just File Paperwork

If your CPA only calls you in April, you’re not getting the guidance you need.

A great accountant should be a strategic partner, not just a tax preparer. At Insogna CPA, we take a proactive approach to tax planning:
 ✔ Quarterly Tax Strategy Sessions – Stay ahead of estimated tax payments and avoid surprises.
 ✔ Expense & Deduction Reviews – Ensure you’re taking full advantage of every tax break.
 ✔ Entity Structuring Advice – We help you choose the best business structure to minimize tax liabilities.

If you’re not meeting with your CPA throughout the year, you’re missing tax-saving opportunities.

Smart Entrepreneurs Plan for Taxes Year-Round. Do You?

If tax planning isn’t built into your business strategy, you’re giving the IRS more than you need to.

At Insogna CPA, we help business owners in Austin, Texas, and beyond develop customized tax plans that reduce liabilities, improve cash flow, and put more money back into their business.

Ready to stop overpaying? Let’s build a tax strategy that works for you. Schedule a consultation today.

..