Getting a jump start on your tax planning can set in place a number of strategies that could reduce your taxes. If you received a refund last year, maybe you should reduce your tax payments by filing a new W-4 with your employer to reduce the amount withheld. Also,you can not just assume you will owe the same in 2011 that you did in 2010. Did you convert a traditional IRA to a Roth and decide to split the income tax bill over 2011 and 2012? If you did, be sure to make bigger tax payments during the year. Be sure to track your medical expenses, you may be surprised that you may have enough expenses to deduct some of the expenses. And as always, the more you can contribute to a tax deferred retirement account lower your taxable income.
To read the complete article click here.