Planning for taxes involves strategizing to maximize deductions and reduce liability. The ultimate goal is to obtain a return or at least have the due amount lined up in advance of a deadline date.

Individuals who are self-employed, experience large gains over the course of a year or those who work multiple jobs often benefit from advanced planning. When estimates are obtained early enough, it is possible to come up with deductions or credits to offset liability. Contributions to an IRA, for example, can make a difference in liability amount.