Taking the fear out of taxes.
Let’s face it, no one likes to hear about taxes. Tax is a horrible word and brings up painful thoughts for most people. That’s okay. You’re not alone in that. Even though we may not like paying taxes or thinking about them, they are a necessary part of living in society. With that in mind, it’s better to have at least a basic understanding of taxes and how to work with the tax code or have someone on hand you can ask for answers and explanations.
Know the foe and in some ways, it can be a friend. Income is defined as, I kid you not, income from whatever source derived. In short, this means that all money, with certain exceptions, is classified as income and taxes need to be paid on each dollar. Though taxes are owed, we all receive deductions, exemptions, and credits depending on our situations. These things lower our taxes. The better we understand how taxes work, the better we can understand how to balance our income and work on tax savings. Estate plans, which are impacted in large part by tax decisions, are one avenue that everyone should explore.