Personal Tax

You work hard to build your business, so why give the IRS more than necessary? The truth is, many entrepreneurs overpay on taxes simply because they don’t have the right strategy in place. They assume their tax software or accountant has it covered, but if you’re not actively managing your tax liability, you’re likely leaving thousands on the table.

If that stings a little, don’t worry. It’s fixable. Here are the top five reasons business owners overpay on taxes and, more importantly, how to stop.

1. You’re Missing Out on Deductions

Think you’re claiming all the deductions you’re entitled to? Maybe not. Business owners leave money behind every year by overlooking common write-offs, such as:

• Home office expenses (yes, even if you rent)
• Business meals and travel (within IRS guidelines, of course)
• Software, subscriptions, and online tools
• Marketing and advertising costs
• Professional development and education

How to fix it: Work with an Austin tax accountant who knows how to maximize your deductions without raising red flags. You’d be surprised how much you can legally write off.

2. Your Books Are a Mess (Or Nonexistent)

You can’t deduct what you can’t prove. If your bookkeeping is inconsistent or nonexistent, you’re missing tax-saving opportunities and setting yourself up for unnecessary stress or worse, an IRS audit.

How to fix it: Either commit to keeping detailed financial records or let an Austin accounting service handle it for you. Well-kept books don’t just make tax time easier; they keep more money in your pocket.

3. You’re Not Planning for Quarterly Tax Payments

If you wait until April to think about taxes, you’re already behind. Business owners and self-employed individuals must pay estimated taxes quarterly and if you don’t, you could face penalties and a massive, unexpected tax bill.

How to fix it: A CPA in Austin, Texas can help you calculate quarterly tax estimates so you stay compliant, avoid IRS penalties, and keep more cash flowing through your business.

4. Your Business Structure Is Costing You Money

The legal entity you choose—LLC, S-Corp, C-Corp—determines how much you pay in taxes. Many entrepreneurs stick with the wrong structure for too long and unknowingly overpay thousands each year.

For example, switching from an LLC to an S-Corp can reduce self-employment taxes and significantly increase your take-home income.

How to fix it: A tax advisor in Austin can review your current setup and let you know if a business structure change makes sense for your financial goals.

5. You’re Not Thinking About Taxes Until It’s Too Late

If your tax strategy consists of filing and hoping for the best, you’re doing it wrong. The best tax savings happen before the end of the year, not during tax season.

A proactive tax strategy includes:

• Quarterly tax planning to prevent overpayments
• Maximizing tax credits (R&D, energy efficiency, hiring incentives)
• Smart retirement contributions to reduce taxable income

How to fix it: Work with a small business CPA in Austin who focuses on strategy, not just compliance. A CPA firm in Austin, Texas can create a tax plan that saves you money year after year.

Stop Overpaying—Let’s Build a Smarter Tax Strategy

If any of these tax mistakes sound familiar, don’t wait until next year to fix them. A proactive tax strategy can put real money back in your business.

At Insogna CPA, we help business owners reduce tax burdens, maximize deductions, and create long-term savings strategies. Whether you need a tax advisor in Austin, an Austin small business accountant, or an Austin accounting firm that understands entrepreneurs, we’ve got you covered.

Let’s stop overpaying. Work with Insogna CPA—one of the top CPA firms in Austin, Texas—and start keeping more of your hard-earned money today.

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Let’s Be Honest. Are You Giving the IRS More Than You Should?

Taxes are one of the biggest expenses in your business. Yet, every year, countless entrepreneurs overpay simply because they don’t have the right tax strategy in place.

If you’re not actively managing your taxes, there’s a good chance you’re leaving money on the table.

• Are you maximizing every deduction available to you?
• Have you structured your business to minimize tax liability?
• Do you plan ahead for taxes, or do you scramble at the last minute?

If you’re unsure, it’s time to take a closer look. A CPA in Austin, Texas can help you spot tax-saving opportunities and make sure you’re keeping more of what you earn.

Why Business Owners Overpay Taxes

Nobody chooses to overpay taxes. It happens because:

 ✔ You’re missing deductions. If you’re not tracking every expense, you’re likely paying more than necessary.
 ✔ Your bookkeeping is messy. Poor record-keeping means missed write-offs and avoidable errors.
 ✔ You don’t have a tax strategy. If you’re only thinking about taxes in April, you’re doing it wrong.
 ✔ Your business structure isn’t optimized. Sticking with the wrong entity type (LLC, S-Corp, C-Corp) can cost you thousands in unnecessary taxes.

A small business CPA in Austin can help you clean up your books, maximize deductions, and create a tax strategy that works in your favor.

4 Ways to Tell If You’re Overpaying Taxes

1. Look at Your Last Few Tax Returns

Take a closer look at what you’ve been reporting. Are you:

• Writing off all eligible business expenses (software, meals, travel, marketing)?
• Taking advantage of depreciation and Section 179 deductions for equipment?
• Claiming a home office deduction if you work from home?

If you’re not sure, an Austin tax accountant can review your past returns and uncover missed deductions.

2. Make Sure You’re Tracking ALL Business Expenses

Many entrepreneurs only track the obvious expenses—rent, payroll, office supplies. But what about:
 ✔ Business insurance?
 ✔ Software subscriptions?
 ✔ Professional development?
 ✔ Retirement contributions?

A CPA firm in Austin, Texas can help categorize your expenses properly so you’re not paying more than you should.

3. Reevaluate Your Business Structure

Your business entity impacts your taxes more than you might think. If you’ve never reconsidered whether an LLC, S-Corp, or C-Corp is the best fit, you could be paying way more in taxes than necessary.

For example, switching from an LLC to an S-Corp can help reduce self-employment taxes and save thousands per year. A tax advisor in Austin can help you decide if restructuring makes sense.

4. Get Serious About Tax Planning

If your tax strategy consists of waiting until April and hoping for the best, you’re doing it wrong. The biggest tax savings come from planning ahead.

A proactive tax plan includes:

• Quarterly tax projections to avoid overpaying.
• Maximizing tax credits (R&D, energy efficiency, hiring incentives).
• Strategic retirement contributions to lower taxable income.

An Austin, Texas CPA who understands business taxes can ensure you’re taking advantage of every possible opportunity.

You Work Hard for Your Money. Let’s Make Sure You Keep More of It.

If you don’t know whether you’re overpaying, chances are—you are. The good news? A second opinion can change that.

At Insogna CPA, we specialize in helping entrepreneurs minimize tax burdens, maximize deductions, and keep more cash in their business. Whether you need a small business CPA in Austin, a tax advisor in Austin, or an Austin accounting service that works proactively, we’ve got you covered.

Don’t leave money on the table. Let’s optimize your tax strategy. Schedule a tax review today with Insogna CPA, one of the top CPA firms in Austin, Texas.

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Summary of What This Blog Covers:

• Explains why DIY tax tools fall short for entrepreneurs — Most online tax software is designed for basic tax filing, not strategic planning. The blog highlights how tools like TurboTax and QuickBooks fail to optimize deductions, structure income, or proactively manage taxes for business owners.
  
  
• Breaks down the top financial risks of DIY tax planning — From using the wrong business entity to missing qualified deductions and overpaying self-employment taxes, the blog identifies the five most costly mistakes entrepreneurs make when handling taxes alone.
  
  
• Outlines the advantages of working with a strategic CPA — The blog showcases how a certified public accountant provides year-round tax planning, scenario modeling, compliance support, and proactive strategies that build long-term financial efficiency and reduce audit risk.
  
  
• Provides real-world results from expert tax guidance — Through a detailed client case study, the blog illustrates how partnering with Insogna CPA led to over $14,000 in annual tax savings, demonstrating the tangible value of expert, personalized tax support.

Think DIY Tax Planning Is Saving You Money? Here’s What It’s Actually Costing You

You’ve built your business from scratch: late nights, early mornings, risks that paid off, and probably some that didn’t. You’ve worn every hat: founder, marketer, product designer, sales rep, customer support, and yes, sometimes, even bookkeeper. So it’s completely understandable that when tax season rolls around, you lean into what you know best: doing it yourself.

Whether you’re using TurboTax Online, FreshBooks, QuickBooks, or toggling between spreadsheets and free tools, it feels like the responsible choice. You’re being efficient. You’re keeping costs low. You’re managing your business.

But here’s the truth most entrepreneurs don’t hear until it’s too late: DIY tax planning doesn’t save money. It silently costs you year after year.

Let’s walk through exactly why that is, what mistakes cost the most, and how a strategic partnership with a licensed CPA in Austin, Texas can shift you from reactive tax filing to proactive wealth building.

DIY Tax Tools Are Designed to File Not Strategize

First, it’s important to draw a line between tax preparation and tax planning. Most online tools, even the premium versions of TaxAct, WaveApp, or TurboTax Free File focus on filing. That means gathering your numbers, calculating what you owe, and submitting your return to the IRS.

What they don’t do is help you build a year-round tax strategy. That includes:

• Choosing the optimal business structure (LLC vs. S-corp vs. partnership)
  
  
• Reducing self-employment tax through income reclassification
  
  
• Timing income and expenses to manage marginal tax brackets
  
  
• Implementing retirement contributions that reduce current-year taxes
  
  
• Navigating complex filing scenarios like FBAR compliance for foreign accounts
  
  

And perhaps most importantly, they don’t ask the kinds of questions that uncover hidden savings.

By contrast, a certified public accountant near you, especially one trained in small business strategy, will not just record the past. They will help you shape the future.

The 5 Most Expensive Mistakes DIY Tax Filers Make

Even for seasoned entrepreneurs, tax laws are dynamic and nuanced. Here are the five most common and costly errors we see among DIY filers:

1. Using the Wrong Business Entity

Most business owners form a sole proprietorship or single-member LLC when they start. It’s quick and easy. But as revenue grows, staying with that structure can lead to unnecessary taxes, especially self-employment taxes.

For example, shifting from an LLC to an S corporation may allow you to take part of your income as a distribution instead of a salary, reducing your exposure to Social Security and Medicare taxes.

Tax software won’t advise you on this but a small business CPA in Austin will. They’ll help you weigh the costs and benefits of each entity structure and time the transition to align with your earnings trajectory.

2. Missing Legitimate Deductions

DIY tools rely entirely on the information you feed them. If you don’t ask the right questions or understand what’s deductible, the tool can’t help you claim it.

Missed deductions we frequently find include:

• Qualified business income (QBI) optimization
  
  
• Startup and organizational costs
  
  
• Business use of a personal vehicle
  
  
• Business meals and entertainment (when properly documented)
  
  
• Home office expenses (under the safe harbor method or actual expense method)
  
  
• Depreciation on equipment, computers, and office furniture
  
  

A strategic Austin tax accountant reviews your spending throughout the year and flags deductions you didn’t know were available.

3. Overpaying Self-Employment Taxes

If you’re reporting all your income on a Schedule C, the default for sole proprietors, you’re likely paying more in self-employment taxes than necessary.

S-corp owners can split income between salary (which is subject to payroll tax) and distributions (which are not). Structuring income correctly and at a defensible, reasonable compensation level is where a qualified CPA certified public accountant can add significant value.

4. Underpaying Estimated Taxes

Entrepreneurs are responsible for making quarterly tax payments throughout the year. Software might generate a voucher for you, but it won’t adjust for changing revenue, new deductions, or mid-year business changes.

A licensed CPA near you will recalculate quarterly estimates in real time, ensuring you stay compliant while keeping cash flow efficient.

5. Not Planning for the Future

DIY platforms focus only on last year’s numbers. They don’t project ahead. They don’t coordinate with your retirement goals, investment plans, or expansion strategies.

By working with a tax advisor in Austin who knows your business intimately, you can integrate tax planning with long-term financial decision-making. Building wealth with intention, not guesswork.

The Role of Strategic Tax Planning

Let’s define what proactive, strategic tax planning actually includes the kind of service Insogna CPA is known for:

• Customized tax scenario modeling: Run multiple versions of your tax outcome based on variables like income levels, business structures, or investment moves.
  
  
• Quarterly check-ins and tax forecasting: Adjust estimated payments and anticipate year-end positioning based on real data.
  
  
• Advanced deduction strategies: Layer strategies like income shifting, fringe benefits, depreciation elections, and employee retention credits to legally minimize liability.
  
  
• Audit-readiness: Ensure every deduction has airtight documentation. Should an IRS letter arrive, you have expert representation ready, not a support bot or a waitlist.
  
  

This level of engagement simply isn’t possible through do-it-yourself platforms. It’s why most high-performing entrepreneurs seek support from a certified professional accountant or tax accountant near them who acts as a long-term partner, not just a tax filer.

Why “Simple” Taxes for Entrepreneurs Aren’t Simple

You may be thinking: “But my business is still small. Isn’t this overkill?”

Here’s the truth: even simple service businesses often face complex tax decisions, including:

• Multi-state income and sales tax filings
  
  
• Reporting payments to contractors on 1099s
  
  
• Setting up solo 401(k) or SEP IRAs
  
  
• Tracking deductible vs. non-deductible expenses
  
  
• Foreign income or account reporting (FBAR filing)
  
  
• Structuring equity compensation for future hires
  
  

A good rule of thumb? If your business brings in more than $50,000 in revenue, it’s time to upgrade from DIY to a professional.

What You Get With Insogna CPA

When you partner with Insogna CPA, one of the top-rated Austin accounting firms for entrepreneurs, here’s what you can expect:

• Deep experience with small businesses and founders
  We understand the nuance of your business model and tailor advice to fit it.
  
  
• Certified CPAs, tax consultants, and enrolled agents
  Your financials are in the hands of seasoned professionals, not seasonal contractors or junior staff.
  
  
• Concierge-level service
  We believe in high-touch, relationship-driven support. You’ll never feel like a number.
  
  
• Technology and clarity
  We leverage modern tools but prioritize human insight. Our communication is clear, proactive, and collaborative.
  
  

Whether you searched “CPA office near you” or found us through a referral, you’re not just getting a tax preparer. You’re gaining a strategic partner in your financial journey.

Final Thoughts: Build With Strategy, Not Just Software

You didn’t start your business to be average and you shouldn’t settle for average when it comes to your tax planning either.

Tax software is built to handle the past. Strategy is built to shape the future.

If you’re ready to move beyond templates and checkboxes—if you’re ready to optimize, grow, and build a resilient financial foundation, it’s time to work with a team that brings insight, not just inputs.

Schedule your tax strategy session with Insogna CPA today.

Because smart entrepreneurs don’t just manage taxes, they master them.

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Think filing taxes as a W-2 employee is simple? Not so fast. Even if you’re getting a steady paycheck with taxes automatically withheld, there’s a good chance you’re overpaying the IRS without realizing it.

Most employees assume their taxes are on autopilot but tax laws are not designed to work in your favor unless you know how to use them. Let’s break down the six most common tax mistakes W-2 earners make and how you can keep more of your money where it belongs.

1. Thinking You Can Still Deduct Work Expenses

Once upon a time, W-2 employees could write off things like work-related travel, home office costs, and professional development expenses. Then came the Tax Cuts and Jobs Act (TCJA), which eliminated these deductions for most employees.

How to fix it: Unless you’re self-employed, those deductions are gone. Your best bet? Negotiate with your employer to cover these costs or consider starting a side business that lets you legally claim them. A small business CPA in Austin can help you set this up the right way.

2. Not Adjusting Your Withholding After Major Life Events

Marriage, kids, buying a home, getting a raise… all great things. But if you don’t adjust your W-4 withholding after a big life change, you could get hit with a surprise tax bill.

How to fix it: Any time your income or household situation changes, update your W-4 using the IRS calculator or check in with a CPA in Austin, Texas to make sure you’re withholding the right amount.

3. Missing Out on Retirement Contribution Strategies

You’re putting money into your company’s 401(k)—great. But if you’re only contributing up to the employer match, you’re leaving tax savings on the table.

How to fix it: Consider increasing your 401(k), Traditional IRA, or Roth IRA contributions to lower your taxable income and build long-term wealth. Not sure which one is right for you? A tax advisor in Austin can break it down based on your financial goals.

4. Failing to Take Advantage of HSA & FSA Tax Savings

If your employer offers a Health Savings Account (HSA) or Flexible Spending Account (FSA), and you’re not using it, you’re missing out on one of the best tax-free ways to cover medical expenses.

How to fix it: HSAs offer a triple tax advantage—contributions, growth, and withdrawals (for qualified expenses) are all tax-free. FSAs reduce taxable income but require you to use the funds within the year. Need help maximizing these benefits? A CPA firm in Austin, Texas can guide you.

5. Overpaying Taxes by Not Itemizing Deductions Correctly

Many W-2 employees default to the standard deduction because it’s easy. But if you own a home, donate to charity, or have large medical expenses, itemizing could save you more.

How to fix it: Work with a trusted Austin tax accountant to compare your standard deduction vs. itemizing. Homeowners, high-income earners, and anyone with significant deductions should run the numbers.

6. Ignoring Potential Side Hustle Deductions

Your side hustle is taking off—congrats. But if you’re not tracking expenses properly, you’re probably overpaying in taxes. Unlike W-2 income, self-employment income allows for deductions that can dramatically reduce what you owe.

How to fix it: Keep records of all business-related expenses (software, home office, marketing, etc.), and work with a small business CPA in Austin to ensure you’re maximizing deductions while staying compliant.

Stop Overpaying the IRS and Get a Tax Strategy That Works for You

Just because you’re a W-2 employee doesn’t mean you should settle for overpaying in taxes. The right strategy can put more money back in your pocket.

At Insogna CPA, we help professionals and business owners optimize tax savings and avoid costly mistakes. Whether you need help with withholding adjustments, tax deductions, or retirement planning, our Austin accounting service is here to help.

Let’s make sure you’re keeping more of what you earn. Schedule a consultation today with Insogna CPA, your trusted Austin tax accountant...

Filing Taxes as a Newlywed Entrepreneur… What’s the Smart Move?

Marriage changes a lot. Your routines, your priorities, and, of course, your finances. And now, as tax season rolls around, there’s one big question: Should you file jointly or separately?

Maybe you assume that filing separately will lower your tax bill. Or perhaps you’ve heard that joint filing is always the smarter choice. The truth? It depends.

The right filing status can mean the difference between a bigger refund or a bigger tax bill. Let’s break it down so you can make an informed decision and avoid leaving money on the table.

Why Married Filing Jointly Is (Usually) the Best Move

Most couples and especially entrepreneurs benefit from married filing jointly (MFJ) because:

✔ You’ll likely pay less in taxes. Joint filers typically fall into a lower tax bracket than those who file separately.
 ✔ You get a higher standard deduction. In 2024, the standard deduction for joint filers is $29,200—double what you’d get if you filed separately.
 ✔ You qualify for more tax credits, including:

• Child Tax Credit
• Earned Income Tax Credit (EITC)
• Education-related credits (like the American Opportunity Credit)
  ✔ It simplifies things. One return, fewer headaches. Enough said.

For most couples, joint filing is the easy win. But, as with anything tax-related, there are exceptions.

When Married Filing Separately Might Actually Be Better

There are a few scenarios where married filing separately (MFS) makes financial sense:

1. One of You Has High Student Loan Debt

If you’re on an income-driven repayment (IDR) plan, your loan payments are based on your income. Filing separately keeps those payments lower by excluding your spouse’s earnings.

2. One of You Has High Medical Expenses

You can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). Filing separately can make it easier to reach that threshold.

3. You Need to Keep Finances Completely Separate

Some couples prefer to keep their finances distinct especially if one has significant tax liabilities, legal issues, or past debts that could impact a joint return.

But here’s the tradeoff: Filing separately means you’ll likely pay more overall. You lose access to key tax credits, and you might get bumped into a higher tax bracket. Before making this move, it’s worth running the numbers with an Austin tax accountant who understands the details.

How Filing Status Affects Tax Brackets & Deductions

Your filing status determines how much of your income is taxed at each rate. Here’s a quick comparison for 2024:

See the issue? Filing separately can push each spouse into a higher tax bracket much faster. That’s why, for most couples, it doesn’t make financial sense.

So, What’s the Right Choice for You?

There’s no universal answer. Your best filing status depends on your income, deductions, and long-term financial goals.

If you’re not sure, don’t guess. An experienced CPA in Austin, Texas can crunch the numbers and ensure you’re making the most tax-efficient choice.

The Right CPA Makes a Difference

Let’s be honest. Tax season is already complicated enough. Why add uncertainty to the mix? Instead of rolling the dice with TurboTax or making an educated guess, work with an Austin small business accountant who understands the unique tax needs of entrepreneurs.

At Insogna CPA, we go beyond basic tax prep. We create smart, strategic tax plans that keep more of your hard-earned money where it belongs: with you.

Let’s Make Tax Season Work for You

Not sure whether married filing jointly vs. separately is the right call? Let’s figure it out together. Schedule a consultation today with Insogna CPA, your trusted Austin tax advisor...

The Problem: Your Taxes Just Got More Complicated

Marriage. Kids. Buying a home. Starting a business. These milestones are exciting, but when tax season rolls around, they can turn into a giant question mark.

• Should you file jointly or separately?
• Are you claiming all the deductions you qualify for?
• Is that new business venture about to cost you more in taxes than it should?

If you’re using TurboTax or another DIY tax software, it’ll do the basics. But what it won’t do is tailor a tax strategy to your unique situation. It won’t tell you how to legally reduce your taxable income, or warn you when you’re about to miss a major deduction. That’s where working with a CPA in Austin, Texas changes the game.

Why This Happens: Taxes Aren’t One-Size-Fits-All

Life changes mean tax changes, and most people don’t realize how much money they’re leaving on the table. Here’s what that looks like in real life:

 ✔ You got married – You might qualify for tax breaks… or hit the “marriage penalty.” Filing status matters.
 ✔ You had a baby – Congrats! Are you getting the Child Tax Credit? What about dependent care deductions?
 ✔ You bought a home – Mortgage interest, property taxes, and energy-efficient upgrades can be major deductions. Are you claiming them?
 ✔ You started a business – Suddenly, your tax situation is more complex, with write-offs, business structures, and quarterly taxes to consider.

Tax software won’t flag these issues for you but a great Austin tax accountant will.

The Solution: A Smart, Strategic Tax Plan

Don’t let tax season catch you off guard. Here’s what a seasoned tax advisor in Austin can do to help:

1. Filing Status & Maximizing Tax Credits

Your filing status isn’t just a box to check. It directly impacts how much you owe (or get back). A CPA firm in Austin, Texas can help you:

• Decide whether filing jointly or separately benefits you the most.
• Claim the Child Tax Credit and dependent care deductions correctly.
• Know when to itemize deductions instead of taking the standard deduction.

2. Avoiding Common (and Expensive) Tax Mistakes

Biggest mistakes people make after life changes?

• Forgetting to adjust tax withholdings after marriage or a salary jump.
• Missing out on homeownership tax benefits.
• Not deducting business expenses properly after launching a new company.

A small business CPA in Austin ensures every dollar is working in your favor.

3. Proactively Planning for Next Year’s Taxes (and the Next Five)

Great tax planning isn’t just about this year. It’s about setting up future savings. A proactive Austin accounting service will help you:

• Choose the right business entity (LLC vs. S-Corp can make a big difference in taxes).
• Maximize retirement contributions for tax benefits.
• Take advantage of tax credits you didn’t know existed.

It’s Time to Make Tax Season Work for You

Life is complicated. Your taxes don’t have to be. Instead of winging it with DIY software, work with a CPA firm in Austin, Texas that actually understands your unique financial situation.

At Insogna CPA, we specialize in tax strategy, not just tax prep. Whether you’re growing a family, buying real estate, or scaling your business, we’ll make sure you’re making the smartest financial moves and keeping more of your hard-earned money.

Let’s talk. Schedule a consultation today and get ahead of tax season before it gets ahead of you...