Tax Planning

Taxes are a necessary part of life, but they don't have to be a burden. Get tips and information to help you reduce the amount of taxes you pay, and optimize the deductions and credits available to you.

Tax Planning Tips and Resources

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Frequently Asked Questions
  • Why is tax planning important?

    The idea behind tax planning is to arrange your financial affairs so you ultimately end up owing as little as possible in taxes. You can do this in three ways: You can reduce your taxable income, increase your deductions, and take advantage of tax credits.

  • How do you do year-end tax planning?

    Year-end tax planning is the practice of trying to maximize tax returns, avoid tax penalties, and make the most of any possible tax deductions. While this can take place at any time during the year, there are last-minute strategies that taxpayers can implement. These include withdrawing from or contributing to a retirement account to take advantage of tax-free withdrawals, and converting a traditional IRA to a Roth IRA to take advantage of a lower tax rate. 

  • When can you start filing taxes?

    The IRS began accepting and processing 2021 tax returns on Jan. 24, 2022. The IRS typically begins accepting returns sometime during the last week of January. Employers normally have until Jan. 31 to send W-2 and 1099 forms to report employees’ earnings.

  • How do you estimate taxes for retirement planning?

    Your tax rate in retirement will depend on the total amount of your taxable income (i.e. Social Security, investment income, pension, traditional IRA, 401(k)) and your standardized or itemized deductions. List each type of income and how much will be taxable to estimate your tax rate. Add that up, and then reduce that number by your expected deductions for the year.

Key Terms

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