Dealing with Your Federal Income Tax - PowerPoint PPT Presentation


Title: Dealing with Your Federal Income Tax


1
Dealing with Your Federal Income Tax
  • The Definitions
  • AGI Adjusted Gross Income
  • Taxable Income or Net Income Income on which
    tax is computed, or ones gross income minus
    deductions and exemptions

3-1
2
Main Components of Gross Income
  • Earned income
  • Usually includes wages, salary, commissions,
    fees, tips or bonuses (W-2s) (1099 MISCs)
  • Investment income
  • Money received in the form of dividends,
    interest, capital gains or rent from investments
    (1099 INTs, 1099 DIVs, 1099 MISCs, 1099 Bs)
  • Passive income
  • Results from business activities in which you do
    not directly participate such as a limited
    partnership (Usually Sched K-1s)
  • Other income
  • Alimony, awards, lottery and gambling winnings,
    and prizes

3-2
3
Total income is affected by
  • Exclusions
  • Amounts allowed by law to be excluded from gross
    income
  • Some items referred to as tax-exempt income or
    income not subject to federal income tax
  • Example interest on most state and city bonds
  • Tax-deferred income
  • Income that will be taxed at a later date, such
    as earnings from an traditional individual
    retirement account (IRA)

3-3
4
Adjusted Gross Income
  • Adjustments to income
  • Reduce Gross Income to Adjusted Gross Income
  • Contributions to a traditional IRA or Keogh
  • Alimony payments
  • Interest on a Student Loan
  • One half of your Self- Employment Tax
  • Adjusted gross income (AGI)
  • Gross income reduced by these certain reductions
  • Becomes the basis for computing various other
    deductions on Schedule A

3-4
5
Calculate Taxable Income
  • Tax deduction Amount subtracted from adjusted
    gross income (AGI) to arrive at taxable income
    before ones exemptions
  • Use the Standard deduction (2011)
  • Single - 5,800 Joint - 11,600
  • Head of Household - 8,500
  • (Most people use the standard deduction)

3-5
6
Calculate Taxable Income - Itemized Deductions
  • Medical dental expenses (Greater than 7.5 of
    AGI)
  • Taxes (State Local)
  • Home Interest
  • Charitable Contributions
  • Casualty and theft loses (Greater than 10 of AGI
    plus 100 for each occurrence)
  • Moving expenses
  • Job-related expenses
  • Other miscellaneous expenses (Most have to be
    greater than 2 of AGI some such as gambling
    losses do not.)

3-6
7
Calculate Taxable Income Exemptions
  • Exemptions ? Subtracted from AGI less deductions
  • An exemption a deduction for yourself, your
    spouse and qualified dependents
  • The amount of the exemption for the 2011 tax
    year is 3,700 per person
  • After deducting exemptions you have arrived at
    your taxable income

3-7
8
Calculate Taxes Owed
  • Tax table rates Marginal rates
  • The tax rate paid on the last (or next) dollar of
    taxable income.
  • Example
  • After deductions and exemptions, a person in the
    25 tax bracket pays 25 cents in federal income
    taxes for every dollar of taxable income in that
    bracket.

3-8
9
2011 IRS Tax Bracketsat December 2011
3-9
10
2011 IRS Tax Example
Tax on a single taxpayers income of 40,000
3-10
11
Calculate Taxes Owed
  • The average tax rate the total tax due divided
    by taxable income
  • Average tax rate lt marginal tax rate
  • Example
  • Taxable income 40,000
  • Total tax bill 6,125
  • Average tax rate 15.31
  • or (6,125 / 40,000)

3-11
12
Calculate Taxes Owed
  • Alternative minimum tax (AMT)
  • Paid by taxpayers with high amounts of certain
    deductions and various types of income
  • Designed to ensure that those who receive tax
    breaks also pay their fair share of taxes

3-12
13
Calculate Taxes Owed
  • Tax credits
  • Amount subtracted directly from the amount of
    taxes owed
  • Examples
  • Earned income credits
  • Foreign tax credits
  • Child and dependent care credits
  • Retirement tax credits
  • Adoption tax credits
  • Hope Scholarship and Lifetime Learning credits

3-13
14
Tax Credit versus Tax Deduction

3-14
15
Determining Your Tax Liability
3-15
16
Making Tax Payments
  • Payroll Withholding
  • Based on the number of exemptions and the
    expected deductions claimed
  • Estimated Quarterly Payments
  • Estimated tax payments made throughout the year
    based on income made during the year and reported
    on various Forms 1099.

3-16
17
Watching DeadlinesAvoiding Penalties
  • Form 4868 ? automatic six-month extension
  • Submit estimated tax due with Form 4868 by April
    15
  • Penalties Interest
  • Underpayment of quarterly estimated taxes may
    require paying interest on the amount owed
  • Underpayment due to negligence can result in
    penalties of 50 to 75 percent

3-17
18
Prepare a Federal Income Tax Return

Every citizen or resident of U.S. and every U.S.
citizen who is a resident of Puerto Rico is
required to file income tax.
  • Five filing status categories
  • Single or legally separated
  • Married, filing jointly
  • Married, filing separately
  • Head of household
  • Unmarried individual or surviving spouse who with
    a child or dependent relative
  • Qualifying widow or widower (Year of the spouses
    death plus two additional years)

3-18
19
Which Tax Form Should You Use?
  • 400 federal tax forms and schedules
  • Basically the choice is between 3 forms
  • 1040EZ
  • 1040A
  • 1040
  • Which form to use?
  • Type of income
  • Amount of income
  • Number of deductions
  • Complexity of tax situation

3-19
20
Completing the Federal Income Tax Return
  • Filing status and exemptions
  • Income
  • Adjustments to income
  • Tax computation
  • Tax credits
  • Other taxes (such as from self-employment)
  • Payments (total withholding and other payments)
  • Refund or amount you owe
  • Refunds can be directly deposited to your bank
    account.
  • Payments may be directly debited from your bank
    account.
  • Your signature Most common filing error

3-20
21
Mississippi State Income Tax
  • All but 7 states have a state income tax
  • Mississippi (2010)
  • 1st 5,000 or part of taxable income is
    taxed at 3
  • Next 5,000 or part of taxable income is
    taxed at 4
  • Remaining Balance of taxable income is taxed
    at 5
  • States usually require income tax returns to be
    filed when the federal income tax return is due

3-21
22
How Do I File My Taxes Online?
  • Tax preparation software
  • TurboTax and H R Block At Home are two of the
    most popular tax preparation software packages
  • Using software can save 10 or more hours
  • Tax software allows you to complete needed tax
    forms
  • Print and mail the forms or file online
  • e-filing refunds usually take 3 weeks
  • Cost for e-filing 5 - 40

3-22
23
How Do I File My Taxes Online?
  • Free File Alliance
  • Online tax preparation and filing free to many
    taxpayers
  • http//www.irs.gov - go to Free File
  • Various qualification criteria to file free use
    Guide Me to a Service
  • Connect to selected firms website
  • Use forms online software to prepare and file
    tax return

3-23
24
Available Tax Assistance Sources
  • IRS Services
  • Publications and forms
  • 1-800-TAX-FORM
  • www.irs.gov
  • Recorded messages
  • 1-800-829-4477
  • Phone hot line
  • 1-800-829-1040
  • Walk-in service at an IRS office

3-24
25
Available Tax Assistance Sources
  • Tax publications
  • e.g. Ernst and Young Tax Guide and J.K. Lassers
    Your Income Tax
  • The Internet
  • Tax preparation software companies
  • Tax Preparation Services
  • Tax preparers charge between 40 and 2,000
    depending on the complexity of the return
  • Over 40 million U.S. taxpayers pay someone else
    to do their taxes

3-25
26
Types of Tax Preparation Services
  • One-person, local offices to large firms such as
    H R Block
  • Enrolled agents Government-approved tax
    preparers
  • CPAs
  • Attorneys

3-26
27
Evaluating Tax Services
  • Factors to consider
  • Training and experience of the tax professional?
  • Fee for preparing taxes and how determined?
  • Questionable deductions suggested?
  • If return is audited will the preparer represent
    the client?
  • Is tax preparation the main business activity or
    is it a front for other financial (or
    non-financial) products? (I have seen signs
    advertising tax services at barber shops and
    mens wear stores.)

3-27
28
Tax Service Warnings
  • Ultimately you are responsible for providing
    complete and accurate information
  • If your professional tax preparer makes a
    mistake, you are still responsible for paying the
    correct amount, plus any interest and penalties.
    A good preparer will reimburse any penalties and
    interest you pay. (I paid one in 2010!)
  • Hiring a tax preparer does not guarantee that you
    will pay the correct amount
  • Beware of tax preparers that offer refunds in
    advance
  • Refund anticipation loans can charge interest
    rates in excess of 300

3-28
29
What Tax Records to Keep
  • Current tax forms and instruction booklets
  • Social security numbers
  • Copy of previous years returns
  • W-2 forms from employers
  • 1099 forms (interest, self employment)
  • 1098 (mortgage interest paid)
  • Receipts and documentation for expenses
  • Investment business expense documents

3-29
30
What if Your Return is Audited?
  • 0.6 of all returns are audited
  • If you claim large or unusual deductions you are
    more likely to be audited.
  • Three types of audits
  • Correspondence audit for minor questions
  • Office audit takes place at an IRS office
  • Field audit is the most complex, with an IRS
    agent visiting you at your home, your business or
    your accountants office

3-30
31
What if Your Return is Audited?
  • Audit Rights
  • Request time to prepare
  • Clarification of items being questioned
  • Right to appeal audit results
  • When Audited
  • Decide whether to bring you tax preparer,
    accountant or lawyer
  • Be on time for youre appointment bring only
    relevant documents
  • Present evidence in a logical, calm and confident
    manner maintain a positive attitude
  • Make sure your information is consistent with tax
    law
  • Keep your answers aimed at the auditors questions

3-31
32
Objective 4Select Appropriate Tax Strategies
  • Tax Planning Strategies
  • Practice tax avoidance
  • Legitimate methods to reduce your tax obligation
    to your fair share but no more
  • Financial decisions related to purchasing,
    investing, and retirement planning are the most
    heavily affected by tax laws
  • Tax Evasion
  • Illegally not paying all the taxes you owe,
  • by purposely not reporting all income

3-32
33
Tax Planning StrategiesMinimizing Taxes
If you expect Then you should Because
The same or a lower tax rate next year Accelerate deductions into this year Greater benefit to higher rate
The same tax rate next year Delay income into next year Delay paying taxes
A higher tax rate next year Delay deductions Greater benefit
A higher tax rate next year Accelerate income Taxed at lower rate
3-33
34
Tax-Planning Strategies Consumer Purchasing
  • Home ownership
  • One of the best tax shelters
  • Deduct mortgage loan interest and
    property taxes
  • Reduces your taxable income
  • Use home equity line of credit to buy a car or
    consolidate debt
  • Interest deductible
  • Be careful the loan has to be
  • paid back one of these days

3-34
35
Tax-Planning StrategiesConsumer Purchasing
  • Job-related expenses may be allowed as itemized
    deductions
  • Union dues
  • Business tools
  • Job search costs
  • Health care expenses
  • FSAs (Flexible Spending Accounts) allow you to
    reduce your taxable income when paying for health
    related expenses

3-35
36
Tax-Planning StrategiesInvestment Decisions
  • Tax Exempt Investments
  • Interest income from municipal bonds are exempt
    from federal and some state taxes
  • Tax Deferred Investments
  • Tax deferred annuities
  • Section 529 education savings plans
  • Retirement Plans -IRA, Keogh or 401(k)
  • A type of tax shelter

3-36
37
Tax-Planning Strategies Investment Decisions
  • Capital Gains
  • Profits from the sale of stocks, bonds or real
    estate
  • Long-term capital gains (held more than one year)
    taxed at a lower rate
  • Self Employment
  • Advantage Owning your own business can have tax
    advantages
  • Disadvantage Business owners have to pay
    additional taxes

3-37
38
Tax-Planning Strategies Investment Decisions
  • Childrens Investments
  • Children with investment income of more than
    1500 are taxed at parents top rate
  • Retirement Plans (These have different
    contribution limits depending on the situation.
    One should consult their financial advisor.)
  • Traditional IRA
  • Roth IRA
  • Education IRA
  • Keogh Plan
  • 401 (K) Plan

3-38
39
Changing Tax Strategies
  • IRS Changes
  • IRS modifies tax filing procedures each year
  • Congress passes legislation to change the tax
    code each year.
  • Take advantage of these changes for personal
    financial planning
  • Personal Changes
  • Consider changes in your personal situation and
    income
  • Monitor your tax strategies to best serve your
    daily needs and long-term financial goals

3-39
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Dealing with Your Federal Income Tax

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Title: Dealing with Your Federal Income Tax


1
Dealing with Your Federal Income Tax
  • The Definitions
  • AGI Adjusted Gross Income
  • Taxable Income or Net Income Income on which
    tax is computed, or ones gross income minus
    deductions and exemptions

3-1
2
Main Components of Gross Income
  • Earned income
  • Usually includes wages, salary, commissions,
    fees, tips or bonuses (W-2s) (1099 MISCs)
  • Investment income
  • Money received in the form of dividends,
    interest, capital gains or rent from investments
    (1099 INTs, 1099 DIVs, 1099 MISCs, 1099 Bs)
  • Passive income
  • Results from business activities in which you do
    not directly participate such as a limited
    partnership (Usually Sched K-1s)
  • Other income
  • Alimony, awards, lottery and gambling winnings,
    and prizes

3-2
3
Total income is affected by
  • Exclusions
  • Amounts allowed by law to be excluded from gross
    income
  • Some items referred to as tax-exempt income or
    income not subject to federal income tax
  • Example interest on most state and city bonds
  • Tax-deferred income
  • Income that will be taxed at a later date, such
    as earnings from an traditional individual
    retirement account (IRA)

3-3
4
Adjusted Gross Income
  • Adjustments to income
  • Reduce Gross Income to Adjusted Gross Income
  • Contributions to a traditional IRA or Keogh
  • Alimony payments
  • Interest on a Student Loan
  • One half of your Self- Employment Tax
  • Adjusted gross income (AGI)
  • Gross income reduced by these certain reductions
  • Becomes the basis for computing various other
    deductions on Schedule A

3-4
5
Calculate Taxable Income
  • Tax deduction Amount subtracted from adjusted
    gross income (AGI) to arrive at taxable income
    before ones exemptions
  • Use the Standard deduction (2011)
  • Single - 5,800 Joint - 11,600
  • Head of Household - 8,500
  • (Most people use the standard deduction)

3-5
6
Calculate Taxable Income - Itemized Deductions
  • Medical dental expenses (Greater than 7.5 of
    AGI)
  • Taxes (State Local)
  • Home Interest
  • Charitable Contributions
  • Casualty and theft loses (Greater than 10 of AGI
    plus 100 for each occurrence)
  • Moving expenses
  • Job-related expenses
  • Other miscellaneous expenses (Most have to be
    greater than 2 of AGI some such as gambling
    losses do not.)

3-6
7
Calculate Taxable Income Exemptions
  • Exemptions ? Subtracted from AGI less deductions
  • An exemption a deduction for yourself, your
    spouse and qualified dependents
  • The amount of the exemption for the 2011 tax
    year is 3,700 per person
  • After deducting exemptions you have arrived at
    your taxable income

3-7
8
Calculate Taxes Owed
  • Tax table rates Marginal rates
  • The tax rate paid on the last (or next) dollar of
    taxable income.
  • Example
  • After deductions and exemptions, a person in the
    25 tax bracket pays 25 cents in federal income
    taxes for every dollar of taxable income in that
    bracket.

3-8
9
2011 IRS Tax Bracketsat December 2011
3-9
10
2011 IRS Tax Example
Tax on a single taxpayers income of 40,000
3-10
11
Calculate Taxes Owed
  • The average tax rate the total tax due divided
    by taxable income
  • Average tax rate lt marginal tax rate
  • Example
  • Taxable income 40,000
  • Total tax bill 6,125
  • Average tax rate 15.31
  • or (6,125 / 40,000)

3-11
12
Calculate Taxes Owed
  • Alternative minimum tax (AMT)
  • Paid by taxpayers with high amounts of certain
    deductions and various types of income
  • Designed to ensure that those who receive tax
    breaks also pay their fair share of taxes

3-12
13
Calculate Taxes Owed
  • Tax credits
  • Amount subtracted directly from the amount of
    taxes owed
  • Examples
  • Earned income credits
  • Foreign tax credits
  • Child and dependent care credits
  • Retirement tax credits
  • Adoption tax credits
  • Hope Scholarship and Lifetime Learning credits

3-13
14
Tax Credit versus Tax Deduction

3-14
15
Determining Your Tax Liability
3-15
16
Making Tax Payments
  • Payroll Withholding
  • Based on the number of exemptions and the
    expected deductions claimed
  • Estimated Quarterly Payments
  • Estimated tax payments made throughout the year
    based on income made during the year and reported
    on various Forms 1099.

3-16
17
Watching DeadlinesAvoiding Penalties
  • Form 4868 ? automatic six-month extension
  • Submit estimated tax due with Form 4868 by April
    15
  • Penalties Interest
  • Underpayment of quarterly estimated taxes may
    require paying interest on the amount owed
  • Underpayment due to negligence can result in
    penalties of 50 to 75 percent

3-17
18
Prepare a Federal Income Tax Return

Every citizen or resident of U.S. and every U.S.
citizen who is a resident of Puerto Rico is
required to file income tax.
  • Five filing status categories
  • Single or legally separated
  • Married, filing jointly
  • Married, filing separately
  • Head of household
  • Unmarried individual or surviving spouse who with
    a child or dependent relative
  • Qualifying widow or widower (Year of the spouses
    death plus two additional years)

3-18
19
Which Tax Form Should You Use?
  • 400 federal tax forms and schedules
  • Basically the choice is between 3 forms
  • 1040EZ
  • 1040A
  • 1040
  • Which form to use?
  • Type of income
  • Amount of income
  • Number of deductions
  • Complexity of tax situation

3-19
20
Completing the Federal Income Tax Return
  • Filing status and exemptions
  • Income
  • Adjustments to income
  • Tax computation
  • Tax credits
  • Other taxes (such as from self-employment)
  • Payments (total withholding and other payments)
  • Refund or amount you owe
  • Refunds can be directly deposited to your bank
    account.
  • Payments may be directly debited from your bank
    account.
  • Your signature Most common filing error

3-20
21
Mississippi State Income Tax
  • All but 7 states have a state income tax
  • Mississippi (2010)
  • 1st 5,000 or part of taxable income is
    taxed at 3
  • Next 5,000 or part of taxable income is
    taxed at 4
  • Remaining Balance of taxable income is taxed
    at 5
  • States usually require income tax returns to be
    filed when the federal income tax return is due

3-21
22
How Do I File My Taxes Online?
  • Tax preparation software
  • TurboTax and H R Block At Home are two of the
    most popular tax preparation software packages
  • Using software can save 10 or more hours
  • Tax software allows you to complete needed tax
    forms
  • Print and mail the forms or file online
  • e-filing refunds usually take 3 weeks
  • Cost for e-filing 5 - 40

3-22
23
How Do I File My Taxes Online?
  • Free File Alliance
  • Online tax preparation and filing free to many
    taxpayers
  • http//www.irs.gov - go to Free File
  • Various qualification criteria to file free use
    Guide Me to a Service
  • Connect to selected firms website
  • Use forms online software to prepare and file
    tax return

3-23
24
Available Tax Assistance Sources
  • IRS Services
  • Publications and forms
  • 1-800-TAX-FORM
  • www.irs.gov
  • Recorded messages
  • 1-800-829-4477
  • Phone hot line
  • 1-800-829-1040
  • Walk-in service at an IRS office

3-24
25
Available Tax Assistance Sources
  • Tax publications
  • e.g. Ernst and Young Tax Guide and J.K. Lassers
    Your Income Tax
  • The Internet
  • Tax preparation software companies
  • Tax Preparation Services
  • Tax preparers charge between 40 and 2,000
    depending on the complexity of the return
  • Over 40 million U.S. taxpayers pay someone else
    to do their taxes

3-25
26
Types of Tax Preparation Services
  • One-person, local offices to large firms such as
    H R Block
  • Enrolled agents Government-approved tax
    preparers
  • CPAs
  • Attorneys

3-26
27
Evaluating Tax Services
  • Factors to consider
  • Training and experience of the tax professional?
  • Fee for preparing taxes and how determined?
  • Questionable deductions suggested?
  • If return is audited will the preparer represent
    the client?
  • Is tax preparation the main business activity or
    is it a front for other financial (or
    non-financial) products? (I have seen signs
    advertising tax services at barber shops and
    mens wear stores.)

3-27
28
Tax Service Warnings
  • Ultimately you are responsible for providing
    complete and accurate information
  • If your professional tax preparer makes a
    mistake, you are still responsible for paying the
    correct amount, plus any interest and penalties.
    A good preparer will reimburse any penalties and
    interest you pay. (I paid one in 2010!)
  • Hiring a tax preparer does not guarantee that you
    will pay the correct amount
  • Beware of tax preparers that offer refunds in
    advance
  • Refund anticipation loans can charge interest
    rates in excess of 300

3-28
29
What Tax Records to Keep
  • Current tax forms and instruction booklets
  • Social security numbers
  • Copy of previous years returns
  • W-2 forms from employers
  • 1099 forms (interest, self employment)
  • 1098 (mortgage interest paid)
  • Receipts and documentation for expenses
  • Investment business expense documents

3-29
30
What if Your Return is Audited?
  • 0.6 of all returns are audited
  • If you claim large or unusual deductions you are
    more likely to be audited.
  • Three types of audits
  • Correspondence audit for minor questions
  • Office audit takes place at an IRS office
  • Field audit is the most complex, with an IRS
    agent visiting you at your home, your business or
    your accountants office

3-30
31
What if Your Return is Audited?
  • Audit Rights
  • Request time to prepare
  • Clarification of items being questioned
  • Right to appeal audit results
  • When Audited
  • Decide whether to bring you tax preparer,
    accountant or lawyer
  • Be on time for youre appointment bring only
    relevant documents
  • Present evidence in a logical, calm and confident
    manner maintain a positive attitude
  • Make sure your information is consistent with tax
    law
  • Keep your answers aimed at the auditors questions

3-31
32
Objective 4Select Appropriate Tax Strategies
  • Tax Planning Strategies
  • Practice tax avoidance
  • Legitimate methods to reduce your tax obligation
    to your fair share but no more
  • Financial decisions related to purchasing,
    investing, and retirement planning are the most
    heavily affected by tax laws
  • Tax Evasion
  • Illegally not paying all the taxes you owe,
  • by purposely not reporting all income

3-32
33
Tax Planning StrategiesMinimizing Taxes
If you expect Then you should Because
The same or a lower tax rate next year Accelerate deductions into this year Greater benefit to higher rate
The same tax rate next year Delay income into next year Delay paying taxes
A higher tax rate next year Delay deductions Greater benefit
A higher tax rate next year Accelerate income Taxed at lower rate
3-33
34
Tax-Planning Strategies Consumer Purchasing
  • Home ownership
  • One of the best tax shelters
  • Deduct mortgage loan interest and
    property taxes
  • Reduces your taxable income
  • Use home equity line of credit to buy a car or
    consolidate debt
  • Interest deductible
  • Be careful the loan has to be
  • paid back one of these days

3-34
35
Tax-Planning StrategiesConsumer Purchasing
  • Job-related expenses may be allowed as itemized
    deductions
  • Union dues
  • Business tools
  • Job search costs
  • Health care expenses
  • FSAs (Flexible Spending Accounts) allow you to
    reduce your taxable income when paying for health
    related expenses

3-35
36
Tax-Planning StrategiesInvestment Decisions
  • Tax Exempt Investments
  • Interest income from municipal bonds are exempt
    from federal and some state taxes
  • Tax Deferred Investments
  • Tax deferred annuities
  • Section 529 education savings plans
  • Retirement Plans -IRA, Keogh or 401(k)
  • A type of tax shelter

3-36
37
Tax-Planning Strategies Investment Decisions
  • Capital Gains
  • Profits from the sale of stocks, bonds or real
    estate
  • Long-term capital gains (held more than one year)
    taxed at a lower rate
  • Self Employment
  • Advantage Owning your own business can have tax
    advantages
  • Disadvantage Business owners have to pay
    additional taxes

3-37
38
Tax-Planning Strategies Investment Decisions
  • Childrens Investments
  • Children with investment income of more than
    1500 are taxed at parents top rate
  • Retirement Plans (These have different
    contribution limits depending on the situation.
    One should consult their financial advisor.)
  • Traditional IRA
  • Roth IRA
  • Education IRA
  • Keogh Plan
  • 401 (K) Plan

3-38
39
Changing Tax Strategies
  • IRS Changes
  • IRS modifies tax filing procedures each year
  • Congress passes legislation to change the tax
    code each year.
  • Take advantage of these changes for personal
    financial planning
  • Personal Changes
  • Consider changes in your personal situation and
    income
  • Monitor your tax strategies to best serve your
    daily needs and long-term financial goals

3-39
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