If my recent articles regarding the [error of pursuing value stocks](https://www.financialsamurai.com/stop-investing-in-value-over-growth-stocks-if-you-want-to-fire/) or the necessity to invest [substantial funds for transformative financial gain](https://www.financialsamurai.com/the-need-for-investing-big-money-to-make-life-changing-money/) don’t resonate with you, it might be worth looking into hiring a financial expert to oversee your investment portfolio. Delegating the responsibility of investing allows you to concentrate on work, family, and personal interests.
Currently, I am getting ready to file my taxes once more. Every year, I request an extension (with an October 15 deadline) due to delayed K-1s related to private fund investments. Therefore, when Empower contacted me to discuss tax planning errors for high earners, I consented. It’s an area where I have substantial knowledge.
What I didn’t know is that **[Empower](https://empower.sjv.io/c/1139549/3086081/13439)** incorporates tax planning as part of their standard client services. No additional fees, no $300/hour CPA charges. Just seamlessly integrated advice, included within the management fee. Given that taxes are frequently the largest expense for those with high incomes, having a proactive strategy included is significant.
### The Significance Of Tax Planning For High Income Earners
When you earn a high income—consider $250,000+ or the potential to reach that level—you likely have numerous responsibilities: investments, real estate, possibly a business or two. What you may *not* be focusing enough on is tax planning.
It may not be as exciting as a skyrocketing AI stock, but the cumulative impact of intelligent, consistent tax strategies can match investment returns over time. As Empower Personal Wealth specialist Scott Hipp, CPA, CFP® clarifies, for high-income, high-net-worth individuals, tax planning isn’t about finding isolated loopholes—it’s about a proactive, coordinated, *year-round* approach.
Let’s explore four essential questions Scott addressed that demonstrate the considerable value that effective tax planning can provide. If you’re looking for a [financial professional](https://www.financialsamurai.com/how-a-financial-professional-saved-me-from-myself/) to handle your financial assets, selecting one that incorporates tax planning into their services is vital, rather than being just an extra feature.
Empower has been a long-standing affiliate partner of Financial Samurai, and I personally consulted for Personal Capital (which was later acquired by Empower) from 2013 to 2015. I’ve observed firsthand how integrating tax strategy into wealth management can significantly enhance long-term returns.
### 1. Why is tax planning essential for high earners?
When you’re in the upper federal tax brackets—32%, 35%, or 37%—each tactical move matters more. Saving 1% on taxes for someone earning $100K is good. Saving 1% for an individual making $800,000? That’s four first-class tickets to Hawaii with some extra cash to spare.
Scott mentions that many people view tax planning as an annual rush or a quest for magical loopholes (“I heard Uncle Bob pays zero taxes because he made his pets employees…”). The reality is that the most significant benefits arise from small, consistent, legal actions taken year after year.
It’s akin to The Shawshank Redemption: pressure and time. Maximizing a [health savings account](https://www.financialsamurai.com/health-savings-account-as-a-retirement-vehicle/), [backdoor Roth contributions](https://www.financialsamurai.com/the-benefits-of-a-backdoor-roth-ira/), charitable “bunching,” and tax-loss harvesting may seem minor when considered individually, but over 20 years, they can create a substantial pathway toward financial independence.
Here’s the risk: by the time you file in April, many opportunities will have passed. If you file 2025’s taxes in April 2026, your deadline for implementing most strategies was *December 31, 2025*. That’s why Empower’s team works *year-round*—advisors and tax experts convene regularly to adjust and optimize before time runs out.
### 2. What’s the update on the SALT deduction changes?
The State and Local Tax (SALT) deduction limit received a temporary increase following the enactment of [The One Big Beautiful Bill Act](https://www.financialsamurai.com/one-big-beautiful-bill-act-obbba-impact-on-fire-seekers/) on July 4, 2025. It’s set at $40,000 in 2025 (up from $10,000), gradually increasing each year until 2029, before reverting in 2030.
Who stands to gain? Primarily taxpayers with AGI below $500K in high-tax states. Cross the $600K AGI threshold, and the expanded cap