Now that you have read the chapter on managing income taxes, what advice can you offer Timothy and Amber in the case at the beginning of the chapter regarding:
1. Using tax credits to help pay for Tom’s college expenses?
2. Determining how much money Amber will realize if she sells the stocks, assuming she pays federal income taxes at the 25 percent-rate?
3. Buying a home?
4. Increasing contributions to their employer-sponsored retirement plans?
5. Establishing a sideline business for Tom’s jewelry operation?