Income Tax Planning & Strategy Guide
With tax season well on its way, now is the perfect time to start planning. In this guide, we’ll break down tax planning and income tax strategies, explaining how they can help you maximize deductions and reduce your tax bill this year.
The IRS updates tax rules each year. As it stands, we have yet to see any major legislation introduced by this administration that would substantially alter the way we file taxes or the strategy involved with filing. President Donald Trump has suggested the idea of “ending federal income tax for all,” but it will be something that we keep an eye on in the future.
What is Tax Planning?
Tax Planning is the overall analysis of a client’s financial situation to ensure that all elements of the financial plan are working together, allowing the client to legally pay the lowest taxes possible. Some things we take into consideration when tax planning are:
- Optimizing the timing of income and expenses
- Maximizing contributions to retirement accounts
- Using investment strategies to reduce taxable income
When the goal is to minimize taxes, we like to consider investment selection and the type of retirement plan.
Tax Strategies
When it comes to strategic planning, The Financial Guys can tailor a plan that best suits your individual needs. We recommend talking with both financial and tax professionals to ensure a plan that works in harmony with one another. Some basic strategies include reducing your overall income through contributions to retirement accounts, taking standard tax deductions, and taking advantage of tax credits that are available to you.
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