You should defer tax payments as long as
possible:
As mentioned above, placing income into a tax
deferred savings plan is one method. In general,
it can be possible to shift income into the next
year, giving yourself the use of that money and
any earnings on it for an additional year. Often, if
you‘ve in the process of doing work you can
delay payment into the next year.
Capital Gains Taxes - if you own stock or other
securities in your own personal non tax deferred
account, you should manage you securities
sales to minimize you tax bill. In general you
should hold the securities for the long run but if
you know you want to shift your portfolio these
are considerations. Where possible postpone
selling those that have gained in value for more
than one year so they qualify for lower tax rates.
Also, if towards the end of the year, put off sale
until the next year. Conversely, selling those
securities that have lost value can create a
current beneficial tax loss. Of course there will
be transaction fees to consider in either case.
There can be numerous other situations, where
you have income due that is optional in terms of
when you receive it. In general, as long as your
current financial needs are being met, you
should defer that income into future periods to
avoid current taxes on that income.
If you have any doubts about how to handle you
tax planning and tax filing, you should consult a
qualified tax planner.
possible:
As mentioned above, placing income into a tax
deferred savings plan is one method. In general,
it can be possible to shift income into the next
year, giving yourself the use of that money and
any earnings on it for an additional year. Often, if
you‘ve in the process of doing work you can
delay payment into the next year.
Capital Gains Taxes - if you own stock or other
securities in your own personal non tax deferred
account, you should manage you securities
sales to minimize you tax bill. In general you
should hold the securities for the long run but if
you know you want to shift your portfolio these
are considerations. Where possible postpone
selling those that have gained in value for more
than one year so they qualify for lower tax rates.
Also, if towards the end of the year, put off sale
until the next year. Conversely, selling those
securities that have lost value can create a
current beneficial tax loss. Of course there will
be transaction fees to consider in either case.
There can be numerous other situations, where
you have income due that is optional in terms of
when you receive it. In general, as long as your
current financial needs are being met, you
should defer that income into future periods to
avoid current taxes on that income.
If you have any doubts about how to handle you
tax planning and tax filing, you should consult a
qualified tax planner.
| Taxes |
| An important part of your financial health is your tax planning. How well you do this will play a large part in how much tax you pay. There are several important aspects to your tax planning. First and foremost, you should shield as much of your income as possible from being taxed: Put as much money as you can into tax deferred savings & investment plans. Not only will this shield your current income from tax - It will help you achieve your long term financial goals. You can generally save with before tax income - see the Retirement Planning section. See related article on Why Your Taxes Will Go Up. Take all the tax deductions you have available to you when filing your income taxes. If you are on a salary, and it’s below $100K, your tax filing will probably be fairly easy. Your primary deduction will be the standard deduction. If you have your own business or have higher income you will likely want to itemize your deductions. Even if your income is lower you may want and need to itemize your filing to take advantage of specific deductions and tax credits. An example would be the Earned Income tax credit for lower income families. If you own a home and have a mortgage on it you can deduct the interest portion of your payments from your income, lowering your tax bill. If you have a home business, make sure keep track of all of your expenses so that you can deduct them. Make sure you follow all IRS rules on what you can deduct and any limits that apply. It is important that you keep good detailed records of all aspects of your business. Even if you have a full time job, it is possible to have a side small business. Naturally this will provide income, but can also provide deductions against your salary if handled properly. One must be careful, as it necessary to have a segregated presence for the business, and follow other specific IRS rules for the deductions to be allowed. |
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Have Questions? Our consultants are available to help you with
any financial question. We can also provide in-depth consultation
concerning any financial issue facing you. We can help. Please
contact: Best-Financial-Advice.com
any financial question. We can also provide in-depth consultation
concerning any financial issue facing you. We can help. Please
contact: Best-Financial-Advice.com
 |  |  |  |  |
Have Questions? Our consultants are available to help you with any
financial question. We can also provide in-depth consultation
contact: Best-Financial-Advice.com
financial question. We can also provide in-depth consultation
contact: Best-Financial-Advice.com
can also provide in-depth consultation concerning any financial issue facing you. We can
help. Please contact: Best-Financial-Advice.com
help. Please contact: Best-Financial-Advice.com
| 1) We can answer any general financial questions. Our |
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