Personal Finance ©2012
Planning Your Tax Strategy
Standard & Poor's Financial Focus
Tax Planning Strategies
You have to pay taxes, but you can be a smart taxpayer by using strategies to minimize the amount of tax you do pay.
Make a List Write these strategies on your list, adding your own notes:
- Learn about current laws and tax regulations, which may have changed since the last time you filed. Find out how these laws and regulations may affect you.
- Maintain complete and accurate tax records.
- Take the deductions allowed you. For example, if you buy a home, you can deduct both the interest you pay on your mortgage and your real estate property taxes. You can also deduct the interest on a home equity loan.
- Some job-related expenses may be tax deductible. For example, you can deduct union dues.
- Check your investments to see if any are either not taxed or tax-deferred.
- Retirement plans are tax deferred. You do not pay taxes on money you now invest in a retirement account until you begin to withdraw the money at retirement.
- Revise your tax strategies as things change in your life. For example if you buy a house, make sure you remember to include your new situation in your tax strategy
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