Insurance Agent Under $150k Tax Plan


As tax season comes and goes, many insurance agents are wondering if they could have received better service from their tax accountant. Maybe you filed for an extension this year, but found it hard to get a call back from your accountant at times when you needed advice. Maybe you’re looking ahead to next tax season, and wondering what deductions and strategies you can take to minimize your taxes.

When it comes to deducting business expenses, there are certain regulations you need to follow. Business expenses must be both ordinary (commonly accepted in your trade) and necessary (helpful and appropriate for your business). The expenses we list below fall into this category.

The IRS requires documentation of any business expense you deduct. That’s why it’s so important to track your expenses during the year. If you didn’t track your expenses last year, don’t worry; our guide shows you how to retroactively find deductible expenses.

Because there’s always a chance you may be audited, save your business receipts for at least three years after you file your taxes.

Let our team assist you with your Insurance Agent Tax Plan for income under $150k. As an insurance agent, you can save hundreds (even thousands!) of dollars at tax time by deducting business expenses. That’s because every time you write off an expense, you lower your taxable income – putting the money you spend on your business back in your pocket.



At Tax Plan Wealth, we specialize in serving the insurance industry. We serve hundreds of insurance agent clients across the country, and provide comprehensive monthly bookkeeping, tax planning throughout the year and annual tax return preparation services. We manage your bookkeeping and taxes so that you can focus on what you do best -- growing your insurance practice.

The year is rapidly coming to an end. Should you incorporate now or wait until the next year? The business structure (S-Corp, C-Corp, etc.) you choose influences everything from day-to-day operations and taxes. Selecting the correct structure is the single most important step to take when owning a small business. Doing this correctly can potentially save anywhere from $1,000 to $20,000 PER YEAR in taxes depending on your circumstances. We can lay out your options, offer our advice on which option is best suited for you to help you make the best decision. Education is key.

Are you penalty proof? Have you paid enough in taxes this year? Under the IRS Safe Harbor Rule, you are generally penalty proof if you pay 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year. To avoid a penalty, you must pay any estimates on time and your total tax payments (estimates plus withholding) must satisfy one of these requirements. If you have failed to meet these requirements, there are strategic ways to avoid penalties if you act prior to year end.

Allowable tax deductions aren’t always as straightforward as you may think. Did you know that you can partially write off that coffee pot that you donated to the office? Did you know that you can write off your vacation? That you can write off part of your vehicle, even if the business doesn’t own it, through mileage expense? There are even ways to pay your minor children to lower your tax liability without creating a tax liability for them! Tax Plan Wealth provides monthly bookkeeping and tax services to help agents reduce their tax liability throughout the year rather than waiting until the year is over and it is too late.