Tax deductions are amounts that lower your taxable income. They give the illusion that you have earned less money during the year. When you lower your income, you can lower your marginal tax rate, which then lowers your average tax rate.
We live in one of the most heavily taxed nations in the industrialized world – which is why tax minimization strategies are so important. You can build wealth in two ways – by increasing your income or by decreasing your expenses (including taxes). But continually changing legislation can make tax planning complex. A Senior Wealth Advisor can help you reduce your tax bill through solid strategies and tax-efficient investments.