Asian Journal- The Filipino-American Community Newspaper

WHILE we get closer to the last quarter of the year, this serves as a reminder that it’s neither too early nor too late to plan and strategize your income taxes for 2010. New year brings new tax laws. Plan now, not later because when the year is over, there is not much you can do anymore. Quite frankly, tax planning should take all year long.

You might be on your last dollar, but it’s not always a reason to sing the blues. In fact, in the strange world of taxation, your last dollar could actually put you in a higher tax bracket. Put on your shades, grab your guitar, and read on.

A tax bracket is a range of incomes taxed at a specific rate. For example, in 2008, the lowest tax bracket might be $0-$8,350; the second might be $8,351-$33,950; the third $33,951-$68,525. When your income moves above or below the range limits (from $8,025 to $8,350 for example), you switch to a different tax bracket

Tax brackets are components of a progressive income system, in which taxes increase progressively as income increases. The idea is that high-income taxpayers can shoulder the burden of a high tax rate. Low-income taxpayers pay less because they can’t afford to pay high taxes.

There are various ways to minimize taxes but that requires careful planning and implementation. Doing things legally with the IRS and the Franchise Tax Board is not as easy as inflating your deductions come tax season. Now is the right time to put actions into place that would make you compliant with the complex and various tax regulations in place. Remember the power that these organizations have over your overall financial well-being should you falter with filing your income taxes. You probably wouldn’t want to be "helpless".

Should you need to plan and strategize your taxes, my office would be glad to assist. Call us for free and confidential consultation.

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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 450 N. Brand Blvd., Ste. 600, Glendale, CA 91203, phone number (323) 356-3803 or (323) 254-6787.

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