Personal Tax

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...

Summary of What This Blog Covers:

• Why DIY Tax Software Falls Short for Business Owners and High Earners
  This blog explores the hidden limitations of platforms like TurboTax, TaxAct, and TaxFreeUSA. Showing how they’re designed for basic returns, not complex business or investment activity. It explains why growing entrepreneurs and real estate investors need tax planning, not just tax filing.
  
  
• What a Strategic Austin CPA Can Do That TurboTax Can’t
  Discover how a licensed Austin, Texas CPA helps business owners go beyond check-the-box tax prep. Through custom entity selection, audit-ready documentation, proactive deductions, and long-term strategies tailored to reduce self-employment taxes, maximize deductions, and support business growth.
  
  
• The Real Cost of “Cheap” Software: Missed Deductions, Higher Taxes, and IRS Risk
  Learn how relying on DIY tools can cost far more than the advertised price by overlooking advanced deductions like the Augusta Rule, cost segregation, or business-use depreciation plus the risk of audit from misclassified expenses and unsupported deductions.
  
  
• How Working with Insogna CPA Creates a Year-Round Tax Advantage
  The blog shows how Insogna CPA offers more than just compliance. Clients get proactive planning, regular check-ins, accurate forecasting, IRS representation, and support with real estate, contractor management, W-2/1099/W9 filings, and even FBAR compliance. Building a smarter, sustainable tax plan for long-term success.

Let’s talk entrepreneur to entrepreneur.

You’re a builder, a creator, a risk-taker. You’ve grown your business from idea to income, wearing every hat along the way. So when tax season hits, it makes perfect sense to reach for a familiar, affordable tool like TurboTax Free or TaxAct to handle your return. After all, you’ve already figured out a million other things on your own.

But here’s the real question:

Are you 100% confident that DIY tax software is getting you every deduction, every credit, and every advantage you’re entitled to as a business owner?

Because if you’ve got a business in Austin, a rental property on the side, or even a growing side hustle bringing in real money, the answer is probably “no.”

And you’re not alone.

Every year, small business owners, real estate investors, and freelancers unknowingly overpay the IRS—not because they did anything wrong, but because tax software isn’t built to strategize. It follows a script. You, my friend, do not.

The Problem with DIY Tax Software (Yes, Even TurboTax Online)

Let’s be honest. The appeal of platforms like Intuit TurboTax, H&R Block Online, or TaxFreeUSA is hard to resist. They’re accessible, easy to use, and let you breeze through filing in an hour or two.

But they’re built for one thing: filing taxes, not planning them.

That’s a critical difference when you own a business. Because once you’re earning six figures, juggling contractors, or dealing with multiple income streams, it’s not just about entering numbers into boxes. It’s about crafting a year-round tax strategy that maximizes savings and aligns with your growth goals.

Here’s where software falls short:

• It won’t suggest changing your entity structure to reduce self-employment tax.
  
  
• It won’t recommend setting up a Solo 401(k) to boost retirement savings and lower your taxable income.
  
  
• It won’t tell you to use the Augusta Rule or explore cost segregation for your rental property.
  
  
• And it certainly won’t defend your deductions if the IRS ever comes knocking.
  
  

Software follows rules. A seasoned CPA in Austin builds strategy.

What a Strategic Austin, Texas CPA Brings to the Table

There’s a reason growing businesses eventually outgrow DIY tax prep.

Here’s how a licensed CPA, especially a small business CPA in Austin, elevates your financial approach beyond what TurboTax Free can do.

1. Real Tax Planning, Not Just Tax Filing

Most tax software is reactive. It takes your data and files your return based on what happened last year.

But a certified public accountant near you doesn’t just record history, they help you shape the future.

We:

• Forecast your income and tax liability before year-end.
  
  
• Help you make strategic purchases and investments at the right time.
  
  
• Calculate quarterly tax payments with precision so you avoid underpayment penalties.
  
  
• Develop multi-year strategies that evolve as your business scales.
  
  

It’s like having a GPS for your finances instead of trying to read the map yourself.

2. Entity Optimization: Are You Still a Sole Prop?

TurboTax won’t stop you and say, “Hey, you’ve grown. Time to consider electing S-Corp status for tax savings.”

But a CPA will.

We’ll review your business income and structure, then guide you through:

• LLC vs. S-Corp: Which is better for reducing self-employment tax?
  
  
• Reasonable salary analysis (to satisfy IRS requirements for S-Corp owners)
  
  
• Payroll setup and quarterly filings
  
  
• Integrated bookkeeping using tools like QuickBooks, FreshBooks, or Wave Accounting
  
  

Done right, an S-Corp structure can save you thousands annually. Something your DIY software won’t even mention.

3. Audit-Resistant Documentation and Categorization

Misclassifying expenses is one of the top mistakes made with tax software. It’s easy to click the wrong category or worse, not know where an expense belongs at all.

The result?

• Missed deductions
  
  
• Higher taxable income
  
  
• Potential audit flags
  
  

At Insogna CPA, we ensure your Chart of Accounts is optimized, your expenses are accurately classified, and your documents are audit-ready. That includes:

• Reconciling your bank statements monthly
  
  
• Reviewing your business vs. personal expense split
  
  
• Ensuring clean year-end financials for both tax and growth planning
  
  

4. Access to Advanced Deductions (That TurboTax Won’t Even Ask About)

Most DIY platforms don’t even prompt you to explore strategies like:

• The Augusta Rule (rent your home to your business up to 14 days/year tax-free)
  
  
• Cost segregation (accelerated depreciation on investment property)
  
  
• Section 179 expensing (for large equipment purchases)
  
  
• Home office deduction strategies if you also use co-working spaces
  
  
• Business use of vehicle with actual expenses vs. standard mileage comparison
  
  

And yes, all of these deductions are IRS-approved but only if applied correctly, with documentation to match.

Real Estate Owners: Here’s What TurboTax Won’t Tell You

You might already know that you can deduct depreciation on rental property. But did you know:

• You could be missing out on tens of thousands in deductions by not doing a cost segregation study?
  
  
• If you’re planning to sell, you might qualify for a 1031 exchange to defer capital gains?
  
  
• Certain property upgrades may qualify for immediate expensing under bonus depreciation?
  
  

If your tax software didn’t walk you through those, you’re not alone.

A real estate-savvy Austin tax advisor will not only help you take those deductions but also make sure you do it by the book, so you don’t get hit with IRS recapture penalties down the road.

The TurboTax Cost Illusion: Saving $200 or Losing $20,000?

We hear this all the time:

“Why should I pay for a CPA when I can use TurboTax for $100?”

Here’s the math:

• Say you make $250,000 and miss out on just three advanced deductions worth $25,000.
  
  
• At a 30% tax rate, that’s $7,500 in extra tax paid.
  
  

That’s not including:

• Missed entity structure savings
  
  
• Deferred retirement contributions
  
  
• Underpaid estimated taxes and penalties
  
  

Suddenly, that “cheap” software has cost you thousands more than a professional would charge.

You’ve Graduated from DIY. Now It’s Time to Level Up

We get it. TurboTax got you through the early years. But now you’ve got more to protect and a lot more to gain with the right tax strategy.

If you’re:

• Running a business or side hustle generating $100K+
  
  
• Investing in real estate or planning your next property
  
  
• Hiring contractors, managing payroll, or expanding operations
  
  
• Wondering if you’re doing it right
  
  

Then you’ve officially outgrown DIY tax prep.

Here’s What Happens When You Work With Insogna CPA

We don’t just file returns. We:

• Design a custom tax strategy around your income goals
  
  
• Meet with you throughout the year to adjust projections
  
  
• Offer IRS audit support and representation
  
  
• Help with FBAR filing if you have international accounts
  
  
• Guide you through forms like W-2, 1099, W9, 1040, and beyond
  
  

Whether you’re a creative, consultant, coach, or investor, our Austin CPA firm specializes in proactive planning for people just like you.

Let’s Talk Because Filing Isn’t the Finish Line. It’s the Starting Point.

We believe your tax return should be a byproduct of your strategy, not a surprise that shows up every April.

At Insogna CPA, we serve entrepreneurs, small business owners, and real estate investors who are done leaving money on the table. We offer personalized service with deep expertise in Austin tax law, federal compliance, and smart tax-saving strategies for growth-minded professionals.

Ready to stop guessing and start keeping more of what you earn?

Schedule your consultation today with a licensed CPA in Austin who knows your industry, your goals, and how to help you get there without overpaying the IRS to do it...

Why Does It Feel Like the IRS Takes More Than You Keep?

You’ve done everything right. You built your career, climbed the ladder, and now you’re earning six figures. But every tax season, you look at your paycheck and think, “Wait… why am I paying so much in taxes?”

You’ve tried the usual tax-saving tricks—maxing out your 401(k), dabbling in real estate—but nothing seems to make a real dent in your tax bill. And let’s be honest, watching a huge chunk of your hard-earned income disappear to the IRS every year is downright painful.

Good news: there’s a better way.

As a high-earning W-2 professional, you need tax strategies designed for you—not just generic advice that works for the masses. That’s where a smart, proactive Austin, Texas CPA can help you stop overpaying and start keeping more of what you earn.

Let’s break it down.

Why Passive Real Estate Investments Aren’t Saving You Money

You’ve probably heard that real estate investing is the key to tax savings. And while that’s true for some people, it’s not always true for high earners with W-2 income.

Here’s why real estate isn’t giving you the tax breaks you expected:

• The Passive Loss Trap – The IRS treats rental income as “passive.” That means you can’t use real estate losses to offset your W-2 income unless you’re classified as a real estate professional (which, let’s be real, you’re not because you’re busy crushing it at your actual job).
• The $150K AGI Block – If your adjusted gross income (AGI) is over $150K, you can’t use rental property losses to lower your tax bill. Instead, they get “suspended” until you sell the property (which doesn’t exactly help you right now).
• Depreciation Takes Time – While real estate depreciation is great long-term, it’s not an immediate game-changer for your W-2 tax bill.

Bottom line? If you’re a high-earning W-2 professional, real estate alone won’t get you the tax savings you’re looking for. It’s time for a new approach—one that actually works for people in your income bracket.

How to Reduce Your Tax Bill (Legally!) Without Quitting Your Day Job

If real estate isn’t cutting it, here are two IRS-approved tax strategies that can make a real impact.

1. Conservation Easements: The Ultimate Tax Deduction Hack

A conservation easement is one of the most powerful tax-saving tools out there. It allows investors to purchase a share in land that will be permanently protected for environmental conservation—and in return, you get a huge tax deduction.

✔ How It Works: You invest in a qualified conservation easement, and when the land is preserved, you get a charitable deduction often 2-5x your initial investment.
✔ Why It Works for W-2 Professionals: Unlike real estate losses, this deduction directly offsets your taxable W-2 income (translation: more money in your pocket).
✔ Potential Tax Savings: A $100K investment could generate a $250K+ deduction, which means $75K+ in tax savings if you’re in a high bracket.

⚠ Important Note: The IRS keeps a close eye on conservation easements. Working with a CPA in Austin, Texas, ensures you stay compliant and only invest in legit programs.

2. Oil & Gas Investments: The Overlooked Tax Break for High Earners

Here’s a tax strategy that actually works for W-2 professionals: investing in domestic oil and gas projects.

Why? Because unlike real estate, oil and gas investments come with tax deductions that offset your W-2 income immediately.

✔ How It Works: A portion of your investment qualifies for Intangible Drilling Cost (IDC) deductions, which means you can deduct 75-85% of your investment in the first year.
✔ Why It’s Effective: These deductions aren’t classified as “passive losses,” so they can directly reduce your taxable W-2 income.
✔ Bonus: If the investment starts generating income later, it’s typically taxed at lower long-term capital gains rates instead of your high marginal tax bracket.

Translation: Investing in oil & gas means real, immediate tax savings—not some theoretical benefit you’ll see years down the road.

How One Tech Exec Saved $60K in Taxes with the Right Strategy

Let’s take a real-life scenario:

Meet Chris, a Tech Executive in Austin

Income: $500K/year
Problem: Maxed out his 401(k), invested in real estate, and still got crushed by taxes.
Solution: Worked with an Austin tax accountant to invest $100K into a conservation easement + oil & gas projects.

Results:
 ✔ $250K deduction from the conservation easement
 ✔ $75K in first-year deductions from oil & gas investments
 ✔ $60,000+ in tax savings that year

Chris didn’t change jobs, buy more properties, or take on extra work. He just optimized his tax strategy.

And you can do the same.

Stop Overpaying in Taxes and Let’s Build Your Custom Tax Plan

If you’re making six figures (or more) and feeling like you’re paying way too much in taxes, you’re not imagining things. Most tax strategies aren’t designed for high-income W-2 professionals but we know exactly what works.

At Insogna CPA, we help professionals like you:

• Find and implement IRS-approved tax strategies that actually work
• Reduce your taxable W-2 income without sketchy loopholes
• Make sure you’re compliant while maximizing deductions

Ready to stop overpaying?

Let’s create a custom tax plan tailored to you. Schedule a consultation with an experienced Austin Texas CPA, and let’s put your money back where it belongs—in your pocket...