Tax Planning
How brackets, deductions and the main planning mechanics work. Figures are 2025 and most are indexed annually.
- Adjusted Gross Income (AGI)
- Gross income minus above-the-line deductions, and the figure most other tax thresholds key off.
- Tax Brackets (Marginal Tax Rate)
- Rates applied in slices, where each rate touches only the income falling inside its own band.
- Effective Tax Rate
- Total tax divided by total income, which is always below the top bracket reached.
- Tax-Loss Harvesting
- Realizing a loss to offset a realized gain, reducing the taxable amount for the year.
- SALT Deduction
- The itemized deduction for state and local taxes, and the cap Congress placed on it.
- Estate Planning
- The documents that determine what happens to your assets and decisions when you cannot make them.
- Fiduciary
- An advisor legally bound to act in your interest, which is a higher standard than the alternative.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.