Tax Planning in March & April
Planning opportunities are present at all times, but March and April’s natural focus on taxes gives you a chance to identify opportunities and potential issues with your tax returns.
Reviewing tax returns is daunting and difficult given the many state and federal complexities and often changing rules, not to mention the fact most individuals lack fluency with taxes in general. Tracking your exposure to various taxes (e.g. ordinary income tax, capital gains tax, the alternative minimum tax, the net investment income tax, etc.), and your rights to various credits and deductions, requires time and effort.
To assist you in reviewing your filings with your CPA, we have a checklist for retired taxpayers and one for taxpayers that are still working. Each checklist outlines nearly two dozen considerations to help guide you through your returns and circumstances.
While the checklists can help you spot great ways to identify all the different opportunities to consider, we always encourage coordination amongst all your professional advisors to be sure all important items are taken into consideration. For example, you may want your CPA to know that your wealth management advisor has been able to harvest capital losses in your portfolio to offset against capital gains. This could be helpful in smoothing out your tax bill over time. Your estate planning attorney may want to coordinate with your CPA to be sure that any income associated with a trust is properly reported. And of course, if that trust owns an investment account, you will want your investment advisor, CPA, and estate attorney to have coordinated all planning matters to avoid any negative tax events.
Like most complex systems, coordination is key, and simple but elegant solutions usually prove best.
Happy tax planning.
Source: fpPathfinder.com
Categories
Recent Insights
-
The Balancing Act: Navigating Mid-Mom Phase and Office Priorities
Finding Balance in Career and Motherhood Work-life balance—does anyone ever truly achieve it? Probably not, but with each season of life, we find ways to make it work for the present moment. As a mother of five with a full-time career in financial advising, I’ve learned that the concept of balance is often more about…
-
Financially Ever After? Exploring the Dollars and Cents of Marriage for Same-Sex Couples
Since the landmark 2015 Supreme Court decision legalizing same-sex marriage nationwide, LGBTQ couples have gained equal access to the financial benefits and considerations that come with marriage. However, the decision to marry involves complex financial implications that deserve careful consideration. Let’s explore whether it makes financial sense for same-sex couples to get married by examining…
-
Stuck in the Middle: Life as a Sandwich Generation Caregiver
Psst! Over here, down here in between the sliced bread, lettuce, tomato, cheese, and deli meat. Yes, that’s right, I am in the sandwich generation! This term was coined in the early ’80s to describe individuals sandwiched between raising their children and caring for aging parents. We juggle our careers, home responsibilities, and family caregiving…
-
Talk Your Chart | Fed Rate Cuts, Weak Recession Signals, and a Bull Market in Slow Motion| Episode 61
In Episode 61 of Talk Your Chart, Brett and Marcos explore the latest on the Dogs of the Dow, Utilities’ surprising rise, and Constellation Energy’s nuclear power dominance. Dive into the current bull market, Fed rate cuts, inflation signals, and why recession indicators remain weak.