No matter how much or how little financial planning you do, one of the biggest hurdles you'll face on a regular basis is staying on top of your tax obligations. A tax headache is only one mistake away, be it a missed payment or filing deadline, an improperly claimed deduction, or incomplete records.
You can also safely assume that a tax auditor presenting an assessment of additional taxes, penalties, and interest will not look kindly on an "I didn't know I was required to do that" claim. The old legal saying that "ignorance of the law is no excuse" is perhaps most often applied in tax settings.
Although retaining a good accountant or other tax professional may prove to be invaluable in avoiding tax troubles, possessing a working knowledge of how our tax system works is also beneficial. After all, even if you delegate your tax obligations to someone else, you'll still bear the ultimate responsibility for seeing that those obligations are met.
To help you along, we cover the major federal taxes to which you may be subject. We'll include tips for avoiding problem areas and for saving your tax dollars. Even if you're not interested in doing everything yourself, you'll find the information useful for resolving a specific tax question or for identifying issues you may want to raise with your tax pro.
Our discussion of the impact of federal taxes on financial decisions covers the following topics:
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