Tax Planning & Strategy
One Way to Work With Your Finances — Tax Planning
Tax planning is a process that helps you reduce the amount of taxes you’ll owe at the end of each year. Proper planning involves analysis of a financial situation or plan, to ensure that all elements work together to allow you to pay the lowest taxes possible. Considerations of tax planning include the timing of income, size, the timing of purchases, and planning for expenditures.
There are a number of ways you can go about tax planning, but it primarily involves three basic methods:
Reducing your overall taxable income
Increasing your number of tax deductions throughout the year
Taking advantage of certain tax credits