Tax Return Review

Carson Strom |

April is synonymous with tax time for many. However, this year consider approaching tax planning differently. Instead of filing away your tax returns and waiting until next year, let's take a proactive approach and begin planning for the remainder of 2024. By starting early, we can explore various strategies to optimize our tax situation and potentially increase our financial flexibility. Below are just a few examples of things to be thinking about when reviewing your tax return.


Adjusting Contributions to Retirement Accounts:

This is an excellent opportunity to revisit your retirement savings strategy. Consider adjusting contributions to retirement accounts such as 401(k)s, IRAs, or SEP IRAs. By increasing contributions early in the year, you not only maximize tax-deferred growth but also take advantage of potential employer matches or tax deductions. Whether you're self-employed or working for a corporation, optimizing your retirement contributions now can set the stage for a more financially secure future while also reducing your tax burden.

Income Planning:

Income planning plays a pivotal role in managing your tax liability effectively. Early in the year, it's essential to strategize how you generate and allocate your income to optimize your tax situation. Consider various tactics such as making contributions to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to lower your taxable income while also funding your healthcare needs tax-efficiently. Engaging in charitable giving can have dual benefits by supporting causes you care about while also potentially reducing your taxable income through deductions. Moreover, prioritizing education savings early in the year by funding 529 college savings plans or other education savings accounts can provide valuable tax advantages, contributing to your long-term financial goals. By strategically planning your income and leveraging tax-saving opportunities such as charitable giving, education planning, HSAs, and FSAs, you can proactively manage your tax liability and work towards achieving financial security.


Estate Planning:

Estate planning is not just for the wealthy; it's a critical component of financial planning for individuals and families of all income levels. Take the opportunity this year to review and update your estate plan. Ensure that your will, trusts, and beneficiary designations accurately reflect your wishes and current circumstances. Additionally, consider strategies to minimize estate taxes and streamline the transfer of assets to your heirs. By addressing estate planning early, you can provide peace of mind knowing that your legacy is protected, and your loved ones are provided for according to your intentions.


Let's Discuss Your Tax Planning Needs

As you review these aspects of your tax situation, remember that we're here to support you. If you have questions or would like to explore tax planning opportunities further, don't hesitate to schedule an appointment with your advisor. Together, we can develop a tailored tax strategy that aligns with your financial objectives.