Fundamentals of tax planning. The main objective of tax planning is to maximize the total after-tax income by reducing, shifting, or deferring taxes within legal limits. Taxpayers can reduce the income tax, for example, by contributing to a 401(k) plan. Tax planning also involves the life cycles. What you do in your 50s will be different from what you do in your 20s. Research tax strategies and in your own words, indicate what you would do in the life cycle you are in currently and give at least three examples. How would those strategies change in the future?