1. Connect with your tax advisor.
If you haven’t heard from your advisor about this year’s return by now, there’s a problem. Your CPA should be proactively guiding you through this process, not the other way around.
If you have heard from your advisor and you’ve been putting off your response, it’s time to stop procrastinating. You want to give yourself and your CPA as much time as possible for the best results.
2. Get organized.Your mailbox and inbox are likely already flooded with various tax documents. Before you finalize your return, review these carefully. You’re looking for two things: Errors and omissions. If you’ve received a document with inaccurate data, contact the organization that sent it to you as quickly as possible to request a correction. Similarly, if you find you haven’t received a document, reach out to check on the status.
3. Use all of your available deductions and tax credits.Don’t give the government more money than you are required to. If you are itemizing your deductions, carefully review your documentation from the past year to make sure you don’t forget anything. Work with your tax advisor to ensure that you are using all the tax credits you qualify for.
4. Watch your deadlines.
If you have a partnership, LLC or S Corporation, tax forms for your business entities are due in mid-March. Federal income tax returns are due in mid-April. You can request an extension, but your tax payments will still be due on Tax Day to avoid penalties and interest, so make sure you’re on top of your financials.
Do you want to really reduce your taxes?
Stop focusing on the size of your refund and start focusing on ways to build wealth that also reduce your taxes.
Real estate, business and clean energy are just three types of investments to consider. The government wants more people to invest in these areas, so it offers significant tax incentives that reduce your taxes while you build wealth.
Check out Tom’s book, “The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make,” to learn more. Then, schedule a free call with the team at TFW Advisors®. We’re here to help you design the right strategy for you.