In October we discussed the three main types of income — how you earn it, how it’s taxed, and when those taxes are due in Understanding Different Types of Income & Taxation.
Understanding the distinctions between different types of income is a key element of the financial planning process at Haddam Road Advisors. In this video we dive deeper into this topic and why we make it a priority to help our clients navigate these complexities.
Conclusion
Understanding the different types of income and how they’re taxed is crucial to sound financial planning. Whether you’re an employee with W-2 income, an independent contractor receiving 1099 income, or an investor generating returns, knowing how and when your taxes are due can help you avoid costly mistakes and better manage your cash flow.
Planning for taxes, particularly if you’re earning 1099 or investment income, is an integral part of a strong financial strategy. At Haddam Road Advisors, we can help you navigate these complexities, ensuring you’re on track to meet your financial goals while staying compliant with tax regulations.
Stay tuned for future posts on topics like allocating income, good vs. bad debt, and managing investment risks.
We look forward to continuing this journey with you! if you would like to learn more about Haddam Road Advisors and how we can help you achieve your financial goals, please schedule a call below.
Understanding Different Types of Income and Taxation
Planning Basics: The 5 things you can do with your income
