We're in the thick of tax season! While you might prefer beach season or snuggle up with a good book season, taxes are likely on your to-do list. There are a few things to keep in mind.
More people than ever are working from home offices. As a result, you may be able to claim tax deductions that you haven’t in the past. It’s worth it to check whether your itemized deductions are more than your standard deduction. Talk with your CPA about it.
As your financial advisor, I’m happy to collaborate with your tax planner. With a signed letter from you stating that you give me permission to discuss your finances and tax situation, I can be a second set of eyes. If you'd like a template letter to use, I'm glad to provide it.
Whether you have a complex tax situation or not, there are a few general questions you may want to ask your tax professional:
- How might I lower my effective tax rate?
- Do you have any ideas for reducing my taxable income?
- Are we claiming all of the available tax credits and deductions?
Don't forget that you have until you file taxes to make your 2020 contributions to your IRA account(s). Depending on your circumstances, you may be able to deduct the contribution from your taxable income. Traditional and Roth IRA contribution limits are $6000 for 2020 ($7000 if you are over 50 years old).
While countless tax planning strategies are available, choosing the right ones for your situation can help you avoid costly errors and missed opportunities. I'm glad to help coordinate your dream team, including legal, tax, and accounting professionals. This approach helps you align advice from various sources around your financial best interests, ensuring one-off tax strategies aren’t implemented at the expense of your overall financial goals.
If you’d like to discuss your unique situation, give me a call! If your friends, colleagues or loved ones are in need of financial advice, don’t hesitate to put them in touch with me. If they matter to you, they matter to me.
May the taxes be ever in your favor.
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.