Tips on Tax Planning

The problem with most people’s tax planning is that they do it last minute or try to do it when it is too late. Although you are currently completing your taxes for 2009 there is not much you can do to save taxes for 2009 now! Planning happens early, that’s why it’s called planning. Planning for 2010 should be happening as you complete and file your 2009 tax return, and followed through right until December 31^st. That being said, what can we do to still save taxes for last year? There are still some things you can do now, such as income splitting, deduction splitting and credit splitting. In the next blogs I will briefly discuss each.