What are some good year end tax planning strategies?
A. The simplest time honored year end tax planning strategy is called timing. The idea is estimate whether you will be in a lower tax bracket this year or next year and accelerate or postpone income into the lower tax bracket year and to accelerate or postpone deductions into the higher tax bracket year. Furthermore medical and miscellaneous itemized deductions subject to AGI limitations that would be otherwise lost should be bunched together. How to figure out which year your tax bracket will be higher and which income and expense items can be moved around and how will be subjects of future QOWs. Q. Can you tell me about the electronic payment options available for income tax returns. A. Last year, the IRS introduced two electronic methods for paying income taxes. They are by credit card and by direct debit from your account. The credit card method is a little unusual since the bank fee normally paid for by the ‘store’ (in this case the IRS) is paid for by the taxpayer instead. That m
