It's no surprise that more than half of Americans let someone else do their taxes. The federal tax code is so riddled with credits, deductions, exemptions and exceptions that many people have simply thrown up their hands. But farming out your taxes doesn't get you off the hook. Your accountant can't trim your tax bill unless you keep good records. Record charitable contributions, business-related costs, tuition bills and other expenses that might qualify for a credit or deduction.
Taxes also can eat away investment returns.
Before you cash in a hot stock or mutual fund, figure how much you'll owe in taxes. Likewise, when picking a mutual fund for a taxable account, look at its history of capital gains distributions. Some funds regularly pay out large, taxable distributions, and you may not want that. At least, you should plan for it rather than get a December surprise. Have a will.