Should you get a tax planner as a contractor?
If you’re self-employed, a 1099 contractor, or running a small business, tax planning isn’t optional. Why? Because self-employment taxes hit differently… as do business taxes, and even W2 taxes can have some nuances. But when you’re self-employed, your income isn’t just your income; it’s your retirement, healthcare, operating costs, and your tax responsibility all rolled into one.
A solid plan from a qualified tax planner CPA can mean the difference between calm clarity… and a surprise letter from the IRS.
What is personal tax planning?
Tax planning is the legal process of structuring your finances to minimize what you owe (while staying fully compliant with IRS laws). Unlike tax prep (which happens after the fact), planning happens in advance so you can actually influence the outcome.
It’s not just for billionaires or big corporations. If you’re self-employed or managing irregular income, you need it more than most.
What’s the difference between tax planning and avoidance?
Here’s the bottom line:
- Tax planning uses legal deductions, credits, entity structures, and timing strategies to lower your tax bill.
- Tax avoidance schemes (like off-shore shelters or aggressive write-offs with no basis) can land you in serious legal trouble.
If you don’t know where that line is, the IRS won’t go easy on you. That’s why working with a tax planner CPA is critical.
How your business type affects your tax planning
Tax Planning as a W-2 Employee
If you’re a full-time employee, your tax planning options are limited, but not nonexistent. Maximizing retirement contributions, HSAs, and strategic charitable giving can still move the needle. But the real tax power often starts when you step into 1099 territory.
Tax Planning as a 1099 Contractor
Contractors (like CRNAs, travel nurses, and locum physicians) are on the hook for self-employment tax, often without employer-sponsored benefits. This means every deduction, every structure, and every quarterly estimate matters.
With NTC Accounting Firm, our clients learn how to shift from survival mode to strategic mode by using the tax code to their advantage.
Tax Planning as a Small Business Owner
Once you’ve set up a business entity, tax planning gets even more nuanced. From pass-through income to payroll optimization, the choices you make today shape next year’s tax bill.
This is where tax preparation and planning turns into long-term financial health.
Tax preparation and planning tips for individuals and the self-employed
Claim All the Deductions You Qualify For
Think: CME courses, travel to job sites, licensing fees, home office expenses, scrubs, even your work phone. If it supports your business, it might be deductible.
But you need to track it, categorize it, and file it right. One error can trigger an audit.
Explore Tax-Advantaged Income Streams
Side hustles. Real estate. Solo 401(k)s. Even passive investments. A good tax planner helps you understand which income sources are taxed, which aren’t, and how to grow your earnings without growing your tax bill.
Use Retirement Contributions to Reduce Taxable Income
Contributing to a SEP IRA or solo 401(k) isn’t just good for future you, it also lowers your current taxable income. It’s one of the simplest (and most underused) strategies among the self-employed.
Explore Income-Splitting Within the Family
In some cases, paying a spouse or adult child through your business can shift income into a lower tax bracket (legally). But you have to do it right, with documentation and a real business case.
Consider Forming an LLC or S Corp
This one’s big. Entity selection can change how you’re taxed, not just how you look on paper. NTC Accounting Firm has helped hundreds of healthcare contractors and consultants form LLCs, elect S Corp status, and set up compliant payroll systems. We know what the IRS looks for and, more importantly, how to get it right the first time around.
Tax preparation and planning tips for small businesses
Choose the Right Tax Structure for Your Business
A sole proprietorship might be simple, but it can cost you thousands in taxes. The right structure (LLC, S Corp, partnership) depends on your income, risk exposure, and future goals.
NTC Accounting Firm helps you reassess this regularly as your business grows.
Take Advantage of Equipment Deductions
Did you know you can deduct things like laptops, medical tools, business vehicles, even certain renovations? But only if you file correctly and get your tax preparation and planning (a.k.a know when to expense vs depreciate in this scenario).
Be Strategic About How You Pay Yourself
Should you take a draw or run payroll? What’s your reasonable salary if you’re an S Corp? These decisions impact your income tax, Medicare/SS tax, and even how lenders view your business.
How NTC Accounting Firm helps with tax planning
Do I Really Need Personal Tax Planning Advice?
If you’re self-employed and earning over $100K… yes.
If you’re juggling multiple 1099s… yes.
If you’ve recently switched from W-2 to 1099… absolutely yes.
DIY tax prep can miss thousands in savings… or worse, land you in hot water. The IRS doesn’t accept “I didn’t know” as a defense.
How Can an Accountant Help Me With Tax Planning?
A tax planner does more than file returns. They:
- Review your income sources
- Build an entity and compensation strategy
- Project your annual tax liability
- Help you legally reduce it
At NTC Accounting Firm, we don’t do cookie-cutter tax planning. We look at your full picture (business, family, location, industry) and build a system that fits.
Can a Financial Adviser Help with Taxes?
Some can, but only a CPA or EA with tax expertise can legally represent you before the IRS and file taxes. That’s why we recommend pairing financial advisers with our in-house tax experts to cover all bases.
How Much Does a Tax Planner CPA Cost?
It varies, but what you save in taxes (and stress) often far outweighs the fee. Most of our clients save more than they spend, especially once a strategy is applied to their retirement, deductions, and business structure.
When Should I Start Looking for Tax Planning Advice?
The best time? Before you file.
The second-best time? Today.
Don’t wait until tax season panic hits. The earlier you can plan, the more options you have, and therefore, the more we can save you!
📌 Ready to stop guessing and start strategizing?
At NTC Accounting Firm, we create tailored tax plans for healthcare contractors, consultants, and business owners who want more than just a filing service. Whether it’s tax preparation and planning, business structure, or payroll support, we’ve got you.
And we don’t pressure you. We educate you.
Because the IRS doesn’t wait for you to figure it out.
Schedule a free consultation and let’s make this tax year the one where everything clicks.