S&P's Financial Focus

Tax Planning Strategies

You have to pay taxes, but you can be a smart taxpayer by using strategies to minimize the amount of tax you do pay.

Make a List Write these strategies on your list, adding your own notes:

Learn about current laws and tax regulations, which may have changed since the last time you filed. Find out how these laws and regulations may affect you.

Maintain complete and accurate tax records.

Take the deductions allowed you. For example, if you buy a home, you can deduct both the interest you pay on your mortgage and your real estate property taxes. You can also deduct the interest on a home equity loan.

Some job-related expenses may be tax deductible. For example, you can deduct union dues.

Check your investments to see if any are either not taxed or tax-deferred.

Retirement plans are tax deferred. You do not pay taxes on money you now invest in a retirement account until you begin to withdraw the money at retirement.

Revise your tax strategies as things change in your life. For example if you buy a house, make sure you remember to include your new situation in your tax strategy

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