Tax Planning FAQs What is Tax Planning? Tax planning is the analysis of a client’s overall financial situation and conditions in order to craft a financial plan that can be executed in the most tax-efficient manner. What is the purpose of Tax Planning? The purpose of tax planning is to ensure that, while a client is planning for retirement, college funds, investments, etc, they are also losing as little as possible to taxes. What are some of the advantages of Tax Planning? Some advantages of tax planning include minimizing taxes on your estate, reducing taxes on property left to heirs, and making the best use of available deductions and tax credits. What is a tax deduction? A tax deduction is an amount by which you can reduce your taxable income, which in turns requires fewer dollars of tax to be paid. What is a tax credit? A tax credit is an amount by which your owed taxes are directly reduced. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.