Tax Season Panic: How Off-Season Planning Can Bring Financial Confidence

March 8, 2024 – Maryann Keith, CFP®, CIMA®, CDFA®

It’s tax season and the April 15th deadline is quickly approaching. The thought of this leaves you feeling panicked. Will you owe a huge sum of money? How will you come up with cash to pay your taxes and contribute to your retirement plans that are supposed to help you pay less in taxes?

I’ll let you in on a secret – the best time to do tax planning isn’t during tax season. The off season is where the magic happens. In the days and weeks leading up to the tax filing deadline, I’ve observed that while accountants are doing their absolute best, they don’t always have the time to stop and plan for the bigger picture. Some of my favorite meetings of the year are those done in collaboration with my clients and their tax professionals in the summer or late fall when the tax professionals have room to breathe. Together, we look at the numbers and plan for the most tax efficient strategies for the current and upcoming years. It’s amazing what can be accomplished outside of the pressure cooker that is the April 15 deadline.

While right now might not be the best time to have a comprehensive tax planning meeting, your financial advisor can help you uncover easy to implement tax planning strategies to discuss with your accountant when filing. For example, if you started working for yourself last year, you might benefit from setting up a SEP IRA or other retirement plan. Did your kids work a part-time job? You could help them start a Roth IRA. After you’ve filed your taxes, don’t just walk away and forget about them. Mark your calendar for the summer and set a time to meet with your accountant and other financial professionals. Reach out to Beden Wealth Management because we’d be happy to tag along!

Any discussion of taxes is for general information purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

CRN202612-5523296