Staying on Track

Life Changes and Your Taxes

As you know, lowering your tax bill involves careful planning. In fact, there’s hardly an aspect of your financial situation—savings, education, real estate, investments, retirement funding, or estate planning—that isn’t influenced by taxes. Tax planning is especially important if your circumstances have changed over the past year.

As you begin preparing your taxes in anticipation of the April 15 deadline, take a stroll down the front of Form 1040, and think about the life changes you have experienced in the past year.

The Importance of Timing
Waiting until just before April 15 to think about your taxes may prove to be costly. By coordinating your tax strategies with your life changes and financial strategies, you may lower your tax bill while working toward a variety of short- and long-term goals, such as paying off credit card debt, buying a home, helping to pay for a child’s education, and funding your retirement.