Tax planning is a way to align your financial goals and objectives with tax management strategies. United Tax Pros can help you understand and implement sound, effective tax planning strategies to minimize your tax liability, protect and preserve your hard-earned assets and manage your cash flow
Tax planning enables you to minimize your taxes by:
♦ Reducing your income
♦ Increasing your deductions
♦ Taking advantage of tax credits
Increasing Tax Deductions: A tax professional can help you decide whether to take a standard deduction or to itemize your deductions. The three biggest itemized deductions are mortgage interest, state taxes, and gifts to charity. Other itemized deductions include expenses for health care, personal property taxes, job-related expenses, tax preparation fees, and investment-related expenses. It’s a good idea to keep track of your itemized expenses throughout the year.
Reducing Income: You can reduce the amount of tax you pay by contributing to a 401(k) or similar retirement plan at work or through various adjustments (deductions) to income. Adjustments include contributions to a traditional IRA, student loan interest paid, alimony paid, and classroom related expenses.