Tax Planning for Life’s Major Events
As your life changes, so does the set of tax rules that affect you. Depending on the life event, there are new opportunities and pitfalls to avoid as your life as a taxpayer evolves.
Federal income taxes are among most families' biggest annual expenditures and, therefore, an important reason for tax planning. Don’t mistaken tax planning for something only the wealthy practice, and consider this quote — “The best and finest tax planning is done by people who have more money than they'll ever spend or be able to give away. The worst tax planning is done by nice middle-class people who have middle-class virtues, those who have to work hard and save and sacrifice.” Tax planning will save you money.
For the first life stage, graduating college, you can save by deducting moving, job search and student loan interest expenses.
For more tax saving examples, visit Kiplinger.