What's the difference between Tax Planning and Tax Preparing? #taxplanning #taxprep #howtodotaxes

Tax prep versus tax planning. So what's the difference? Well, this is the one thing that might save you more money than all my other strategies combined, especially when you start to earn a lot of money. So think about it this way. Somebody who's a tax preparer is somebody who has already seen what's gone on for the last year and is just preparing your returns for the irs. They can't change what has already happened, so you have to trust that they just get the best deductions and the best tax rate that you're entitled to based on what's already happened. On the other hand, a tax planner is somebody who looks ahead to see what's going to happen over the next few years and makes a plan to help you to mitigate tax before it happens, so that by the time the preparers get a hold of it, it's optimized so that they can get you the best tax deductions possible and exploit all of the legal loopholes for you to save on tax that you had to plan for in the beginning. There's a lot of distinctions here, and I don't want to make this video too long, but what you need to take away from this is that you have people who have tax preparing experience, which is what already happened. And.