Tax Planning Strategies

Tax Planning is an important part of good financial planning. Additional income, whether it is a bonus, an IRA distribution, or capital gains from the sale of a business or property, there are often strategies that can impact the total tax.

At Milne Financial Planning, we work with people across Northern New England and across the US. Our approach is fee-only, and we don’t sell commission products. That structure matters when you’re trying to make clean decisions.

Tax planning isn’t about finding a magic write-off. It’s about making better decisions that have a positive long-term impact. Schedule an appointment today to learn how we can help.

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Why Tax Planning Feels Harder Now

The 2017 tax code change significantly increased the standard deduction. As a result, most taxpayers who had previously itemized their deductions began taking the standard deduction instead.

So where does planning still help?

Income timing (when you recognize income, and what kind)
Account strategy (pre-tax, Roth, taxable)
Capital gains management
Retirement distributions
Charitable strategies
Business and self-employment planning

That drop in itemizing is exactly why smart tax planning today is less about chasing deductions and more about making the right moves with income, accounts, and timing. Let us help you make sure you’re working on the areas that can have the most meaningful impact year after year.

Tax Planning with Milne Financial

We’re not here to replace your CPA. Think of us as the strategy layer that helps you spot decisions worth discussing with your tax professional, then coordinate efforts so everyone’s working in the same direction. That’s consistent with how our website frames planning, including tax awareness as part of a sound financial approach.

Tax Planning Categories to Consider

Bracket-Aware Income Planning

Sometimes you’re closer to the next bracket than you think. Other times, you have room to realize extra income without changing your marginal rate. We’ll look at wages, self-employment income, retirement income, RSUs, rental income, and the whole stack.

Retirement Tax Strategy

JDM - I don't get many/any splitting time between Vermont and NH. Required Minimum Distributions (RMD). Social Security taxation. Medicare IRMAA thresholds. These can collide fast, especially for retirees who split time between Vermont and New Hampshire, or who have income spikes in certain years.

Tax-smart Investing Basics

Asset location can be underrated. What accounts hold which investments can affect how they are JDM taxed on your return listed on your return each year. It’s not about chasing clever tricks. It’s about avoiding avoidable tax drag when possible.

Small Business and Self-Employed

If you’re a consultant in Burlington, a trades business in Winooski, or running a practice that serves the Upper Valley, tax planning gets tied to entity structure, retirement plans, estimated taxes, and deductions that need clean documentation. The “numbers” side should match the real business story.

Charitable Giving

Charitable planning can be meaningful, and it can be tax-aware. Donor-advised funds, bunching, gifting appreciated shares, and qualified charitable distributions (QCDs) once you’re eligible. The right method depends on your situation and your goals.

Frequently Asked Questions

Do you prepare tax returns?
Milne Financial Planning works alongside your CPA or tax preparer so implementation is clear and documented

Can tax planning help if I’m W-2 only?
Often, yes. Retirement contributions, HSA strategy, withholding, and investment account structure can still matter. And if you’re nearing retirement, distribution planning becomes a bigger deal.

I live in Vermont but work in New Hampshire (or vice versa). Now what?
Cross-state income can add layers. We’ll help you gather the right info, map what’s happening, and coordinate questions for your tax professional so you’re not guessing.

When should I start tax planning for retirement?
A few years before retirement is usually a good window to model Social Security timing, Roth conversion possibilities, and what RMDs might look like later.

What should I bring to a first conversation?
Recent tax returns, current paystubs (or income summary), investment and retirement account statements, and any big changes you see coming (sale, inheritance, job change, move).

Avoid the Next Tax Surpise

If you’re looking to optimize your tax strategy, whether you're in the Vermont-New Hampshire area or not, let’s talk.

We’ll start with what’s changing in your life, look for the tax pressure points, and outline the next steps you can review with your tax professional.

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