Tax planning can significantly reduce your tax burden overtime. An effective plan helps ensure that all tax obligations are discharged as efficiently as possible. The most effective tax planning strategies are part of a broad financial plan.
There are many ways to REDUCE TAX OBLIGATIONS, including:
- Income shifting or deferral
- Tax-deferred investing
- Charitable contributions
- Better utilization of deductions
- Adjusting your filing status
The timing of purchases and expenditures can also influence your tax liability, along with your type of retirement plan.