Tax planning is the process of reviewing your financial situation with regards to your tax liabilities and finding ways to further reduce the taxes that you pay throughout the year. Tax planning is an important factor when you are looking at your complete financial plan. Tax planning helps you to develop a financial strategy to reduce or change your current and future tax liabilities, further help you to reach your short or long term financial goals. Ultimately, the main goal of tax planning is to look at the current laws which will allow individuals to further reduce the taxable income for a certain tax period by reducing their income, increase their deductions and/or taking advantage of tax credits.
The benefits of tax planning for your personal financial situation could include reducing your taxes on your income to help you keep more of what you make, reduce your taxes on your estate or gifts so that you can give more to charity or more to your family, further reduce your taxes on your investments and retirement so that you can grow your wealth quicker and that way you can retire in style and if possible defer your income so that your can have the option of keeping your money now and paying less taxes later. Contact United Retirement Advisors Group to see how we can help you with your tax planning for your personal financial situation.