Never fall into the misconception that tax planning is only for wealthy individuals and owners of mega-successful businesses. Tax planning can benefit any person that wants to increase their income by minimizing their tax liability. Whether you are a U.S. resident or citizen, U.S. expatriate, or the owner of an international business, tax planning will likely benefit you or your business in more ways than one.
Every U.S. state, even those without a state income tax, has a state taxing authority. This agency oversees the annual collection of state tax. Taxpayers file individual state tax returns unique to the state. Most state tax returns assess and calculate tax concerning line items from the federal tax return.