Tax Planning = Lower Tax Burden
First, it is crucial to understand that several factors can contribute to a lower tax burden. These include changes in tax laws, adjustments to income, deductions and credits, as well as variations in individual circumstances. In the case of Texas, a state with no personal income tax, it is important to focus on federal tax implications.
Taxable income is impacted by a person’s yearly activity, not just the federal tax codes. A reduction in income, investment losses or a decrease in deductible expenses can impact taxable income. Changes in personal or financial circumstances, such as a job transition, business fluctuations or changes in investment portfolios, will have an impact on taxable income as well.
Another factor to consider is optimizing tax deductions and credits. Maximizing eligible deductions, such as mortgage interest, medical expenses or education-related expenses, can help reduce your overall tax liability. In addition, taking advantage of available tax credits, such as those for home energy efficiency improvements or educational expenses, can further optimize your tax situation.
It is important to note that tax planning plays a critical role in effectively managing your tax liability. By engaging in proactive tax planning strategies, we can work together to identify potential deductions, credits and other tax saving opportunities specific to your circumstances.
As we approach the mid-year point of the year, now is the time to work with your tax team at SA and do tax planning. If you are interested in having a tax planning meeting, please contact your tax professional point of contact or email firstname.lastname@example.org.
New to Seth & Alexander? Please contact email@example.com.
We look forward to tax planning with you.
Seth & Alexander