Income Tax Planning

Proactive tax planning considers the tax implications of individual, investment or business decisions, usually with the goal of minimizing tax liability.

Income Tax Planning


Although wealth management decisions are rarely made solely on their tax impact, you should have a working knowledge of the income or estate tax issues and costs involved. By visiting the wealth universe and its modules, we assess the best strategies to help you manage or reduce the amount of taxes you pay.

A major goal of proactive tax planning is minimizing federal tax liability. This can be achieved by:

  • Reducing taxable income through income deferral or shifting
  • Deduction planning
  • Investment tax planning
  • Year-end planning strategies

Life Event Planning

Some critical financial events like retirement, marriage, divorce, illness, inheritance, disability, children, sale of a business and purchase of a dream home or vacation property come with tax considerations which may affect the stages of your overall investment plan. In fact, your unique life patterns may be totally expected or completely unpredictable. Life event planning as part of income tax planning focuses on the impact of these significant financial events in your life.

For example, if you give away wealth during your life or at death, you may incur federal taxes—and possibly additional state taxes. Your financial advisor can help you plan for the effects of these events and protect the assets from excessive depletion from income tax by helping you understand the various strategies used to minimize taxes.

Use the IRS Tax Withholding Tool

For better income tax planning, the IRS has created a withholding tool to help you see if you should make any changes to your income tax withheld. You may access the estimator through the IRS website.

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