Tax Season… everyone’s favorite time of year… just kidding!
We know how stressful tax season can be. Waiting patiently for all those tax documents to arrive in the mail so you can file as soon as possible. As we engage with clients this time of year, we are excited that our new platform has a simple solution to retrieve those documents. Under the reports section titled “Tax”, you can find all tax statements and dates of availability for your accounts to help ease your stress level. Below we have compiled a list of tax lessons that we have learned, that we hope will help minimize the stress year after year.
Our tax lessons for the ages:
· Admit to yourself if you need help. Ignorance is not an excuse to the IRS, it might abate the penalty and interest you are assessed, but does not alleviate it fully.
· Expect as your situation complicates itself that you will get closer and closer to filing April 15th or even asking for an extension (there is nothing wrong with this). Do not rush to get your filing done and miss important documents that have not even been sent to you yet.
· Adjust your W4 withholdings as your situation changes so you do not give the government an interest free loan; the goal is NOT to receive a refund.
· Make a list of this year’s statements, so next year you have an idea of how many you are likely to receive, where, and when they will come and online availability.
· Strategize not only for this year but for years to come. Ex: Make sure IRAs are maxed out before year’s end so the statement the investment company generates matches your taxes versus calling us and saying “I can save on taxes if I max out my IRA”. We reach out to everyone with IRAs in Oct/Nov to help with this as we knew that.
· CPAs have limits, they account for what has happened but rarely strategize what to do going forward.
**Our attorneys would want me to make sure I remind readers that we are not CPAs nor do we give tax advice and you should seek advice from a tax professional.