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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.
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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financial question. We can also provide in-depth consultation
contact:
Best-Financial-Advice.com
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