Tax planning refers to the process of managing financial affairs in a way that minimizes tax liability and maximizes after-tax income.

Tax planning strategies may involve a range of activities, including selecting tax-advantaged investment accounts, taking advantage of deductions and credits, and structuring financial transactions to reduce taxable income or defer taxes.

Effective tax planning also requires an understanding of relevant tax laws and regulations, as well as awareness of changes in tax laws that may affect an individual’s or organization’s tax liability.

By effectively managing tax liabilities, individuals or organizations can maximize their after-tax income and minimize the amount of money paid in taxes over time.