1.Take a deep breath.
Stress and a hurried approach often lead to errors. So pause, take a deep breath and carve out some time and space to tackle your taxes with a clear head and a calm mind.
2. Find a great tax advisor.If you haven’t given any thought to this year’s tax returns by now, you either don’t have an advisor or need to find a new one.
Look for a CPA who takes a consultative approach — asking you lots of questions and bringing fresh ideas to the table — and uses a proven strategy for permanent tax reduction in connection to your wealth strategy.
If you’re ready to get serious about making way more money and paying way less tax, reach out to our team and see if TFW Advisors® is right for you.
3. Maximize deductions.Review all of your transactions and expenses with an eye toward identifying deductions. (You are practicing good bookkeeping, aren’t you? If not, start immediately!)
Your deductions may include:
Home office
Automobile
Meals
Education and training
Travel
And more!
4. Explore your options.While most deductions are restricted to activities you completed in this calendar year, there are still some opportunities to create new deductions.
If you have a pass-through entity, you may be able to fully deduct your state and local taxes. Work with your tax advisor and check to see if your state offers an elective pass-through entity tax.
5. Ask for an extension if you need one.If you can’t complete an accurate return by Tax Day, go ahead and request an extension. But remember: This is an extension to file, not an extension to pay. Any taxes you owe from the previous year are still due on Tax Day, so be sure to make timely payments to avoid penalties and interest. If you absolutely can’t make your full payment, talk with your tax advisor. There are different waivers and other strategies to minimize penalties that may apply.
Ready to get serious about your wealth and tax strategy?
We’re here to help.
Schedule a call with the team at TFW Advisors® to find out if we’re a good fit for you!