Tax Planning Activities

Taxes are a fact of financial planning. However, various actions can be taken to reduce the time and money that go toward taxes.

Your Short Term Financial Planning Activities

Resources

1. Develop a system for filing and storing various tax records related to

See Exhibit 4 2 (p. 111)

Income, deductible expenses, and current tax forms.

 

 

 

2. Using the IRS and other Web sites, identify recent changes in tax laws

 

That may affect your financial planning decisions.

 

3. Using current IRS tax forms and tax tables, estimate your tax liability for the current year.

PFP Sheet 20

4. Compare the cost of tax preparation services.

PFP Sheet 21

Your Long Term Financial Planning Activities

Resources

1. Identify saving and investing decisions that would minimize future income taxes.

PFP Sheet 22

2. Develop a plan for actions to take related to your current and future tax situation.

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