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Tax planning checklist

by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits revised 11/30/2011

Are you paying the lowest tax allowed under the law? Probably not, according to most tax specialists. Use this checklist to help develop some ideas for further exploration and discussion.

Income:

*Structure legal settlements as non-taxable

*Structure insurance settlements as non-taxable

*Straddle the tax year

*Tax-free interest

*Divorce & separation agreements

*Recoup basis on retirement annuities

*Maximize gift income

Timing:

*Defer taxes

*Accelerate expenses

*Defer income

Allocation:

*Shift Schedule E expenses to Schedule C

*Shift Schedule C income to Schedule E

Investment Income:

*Shift investment income to children

*Maximize tax-free income in life insurance policy

*Interest-free Loans

Retirement Plan:

*employer sponsored plan

*IRA

Miscellaneous Schedule A Deductions:

*Interest

*Medical expenses

*Taxes

*Contributions

*Losses

*Employee expenses

Insurance:

*Deduct medical insurance

*Deduct disability insurance

*Deduct life insurance

*Deduct long term care insurance

*Health savings accounts

Tax-Free Benefits:

*Hospitalization premiums

*Group life insurance premiums

*Group legal services premiums

*Accident and health plans

*Employee death benefits

*Merchandise distributed to employees

*Meals & lodging

*Employee discounts

*Workers compensation

*Cafeteria benefit plans

*Dependent care assistance plans

*Employer educational assistance

*Employee awards

*Miscellaneous fringe benefits

*Scholarships and fellowships

*Gifts, bequests, inheritances

Traditional Tax Shelters:

*Real estate

*Real estate partnerships

*Oil & gas

*Equipment leasing

*Single premium life insurance

Innovative Shelters:

*Family partnerships

*Family trusts

*Gift-leaseback

*Employing family members

*Voluntary Employee Benefit Associations

Credits:

*Earned income credit

*Credit for health insurance to children

*Adoption assistance

*Targeted jobs credit

*Credit for the elderly or disabled

*Mortgage credit certificates

*Child & dependent care credit

New Jersey Society of Certified Public Accountantsaccredited by the Better Business Bureau


Tony Novak is a member of the Pennsylvania Institute of  Certified Public Accountants, the New Jersey Society of Certified Public Accountants and an accredited member of the Better Business Bureau.

Ask about personal professional and affordable help with

  • reviewing tax returns with lingering questions
  • improving personal and small business accounting
  • tax planning strategies
  • managing health care expenses and insurance
  • special needs planning
  • revamping stalled retirement plans
  • providing benefits to employees
  • negotiating executive benefits

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