Filing Status – It is critical to determine which filing status you qualify for and which one is best for you. The filing statuses are single, head of household, married and joint, and married but separate. Each has an advantage in specific situations.

Itemized Deductions – You can deduct your medical expenses, taxes, interest, charitable contributions, and job-related expenses as itemized deductions. It may be to your advantage to tax plan with these items by shifting them from one tax year to another.

Marginal Rates – At certain levels of taxable income, tax rates increase. These are commonly referred to as tax brackets. It could be to your advantage to shift income or expenses from one year to another to keep yourself in a lower tax bracket.

Investment Strategy – There are times you may want to buy or sell investments to take advantage of taxable gains or losses. Capital gain tax rates are better than ordinary income tax rates. Capital losses can be limited to $3,000 per year.

Retirement Plans – Different plans allow you to save money for retirement by deferring income tax. Earn now but pay tax on it later plans include IRAs, SIMPLEs, 401(k)s, Roth IRAs, etc. All have a place in tax strategy.

Education Costs – There are now tax benefits available to help pay for college. These benefits can also help your tax strategy.

Business – If you own your business, the legal form of organization can help your tax strategy. Whether your business is a partnership versus a corporation, a C-corporation versus an S-corporation, an S-corporation versus a limited liability company, or a limited liability company versus a partnership—it all affects tax strategy.

Home Office – More and more people are working out of their homes, which can affect tax strategy.

It takes good tax planning to keep your income tax at a minimum. If you would like us to help with your tax strategy, please call 641-628-3737 or email

Disclaimer: These tips and strategies are for general information purposes only, and are not intended to provide professional tax advice. To determine how this or any other tax tips listed herein might apply to your specific tax situation, contact our office for more details and counsel.