Taxes are a fact of financial planning. However, various actions can be taken to reduce the time and money that goes toward taxes.
| Short-Term Financial Planning Activities | Websites for Tax Planning |
| 1. Develop a system for filing and storing various tax records
related to income, deductible expenses, and current tax
forms. | See Exhibit 4–2 | |
| 2. Using the IRS and other websites, identify recent changes
in tax laws that may affect your financial planning decisions. | Pages 114–115 |
| 3. Using current IRS tax forms and tax tables, estimate your
tax liability for the current year. | PFP Sheet 20 |
| 4. Compare the cost of tax preparation services. | PFP Sheet 21 |
| Long-Term Financial Planning Activities |
| 1. Identify saving and investing decisions that would
minimize future income taxes. | Pages 118–123 |
| 2. Develop a plan for actions to take related to your current
and future tax situation. | PFP Sheet 22 |
