1. Chapter 12 Planning your tax strategy
Section 12.3
Tax Assistance and strategies

2. Tax Assistance
As your personal finances become more complex so will your tax preparation
You might need help
IRS website
Books (Taxes for Dummies)
Software
Professionals

3. Tax Audits
Tax Audit – a detailed examination of your tax return by the IRS
If you receive and audit notice:
You have the right to request time to prepare
You may ask for clarification on the items in question
Arrive for your audit appointment on time
Bring only relevant documents
Answer the auditors questions with clear, complete, and brief answers
Be positive
Bring your tax preparer, accountant, or lawyer if you’d like.

4. Consumer Purchasing Strategies
Buying decisions you make can affect the amount of taxes you pay
If you purchase a house, your interest is tax deductible
Job related expenses can be tax deductible
Union dues
Travel expenses
Educational expenses
Tools

5. Investment Decisions and Retirement Plans
Certain investment decisions may also reduce your income tax
To encourage early planning the government allows you to defer paying taxes on money that you invest in retirement plans
You don’t have to pay interest on this money until you withdraw it.

6. Changing your Tax Strategy
People pay taxes because they are require to do so by law
As tax laws change, your strategies should change too
Take advantage of new tax laws that may reduce the amount you pay