Understanding the basics:

It can be extremely difficult to find time to properly plan for the future. Contemporaneous concerns can and often appear to preempt crucial and salient long-term matters.  Additionally, in the ever-evolving world of tax legislation, it can be extremely time-consuming to stay informed further impeding you for achieving your long-term goals.  Our experts will simplify the complex world of tax planning and help you better achieve your goals.

Americans know the law requires annual tax filings but often are confused about what prudent tax planning entails and pay too little attention to proactive tax arrangements due to professional and personal commitments.

Tax planning is complicated.  Let us help bring clarity with our expertise and experience.

Why is tax planning important and how can sensible tax planning impact my financial and personal goals?

The purpose of tax planning is the reduction of one’s tax liability when given multiple financial decisions.  Combined with rational decision making, efficient tax planning can open up scarce resources and allow individuals and families to maximize contributions to retirement plans, save for rainy day, or enjoy more of their hard-earned income.  Educated tax planning can help taxpayers defer and/or avoid taxes by capitalizing on both Internal Revenue Code and state tax-law regulations.

Things to consider:

  • Should you accelerate tax deductions and credits or defer them to future calendar/fiscal years?
    • Depending on an individual taxpayers situation important considerations may include, when should you maximize charitable and tax-free gifts under the annual exclusion or when should you prepay tax selected deductible expenses such as medical expenses, state and local income taxes, mortgage interest?
  • Will alternative minimum tax (AMT) be applicable to your tax situation and if so what steps can you take to mitigate AMT effects?
  • Did you recently marry, welcome a new addition to your family, or are you able to claim new dependents? If so, it may be time to review your tax withholding calculations, submit a revised W-4 to your employer, and/or make other tax adjustments.
  • When should you accelerate or defer income?
  • When should you sell appreciated securities to maximize your after-tax net return?
  • If permissible, should you seek work opportunities as an employee or an independent contractor?  What are the benefits and disadvantages of both forms of engagement?

Have questions?

Need help getting started, unsure about your current financial plan, or just looking to advance your vested strategy – contact us.