Tax Planning Starts in May

Let’s be honest. Most of us start gathering our documents to file taxes at the end of January and into February, schedule a time with our tax professional, and then wait for our preparer to tell us whether we’re due a refund or owe. If we owe, we ask, “Is there anything we can do to lower our taxes?” If you have a good preparer, he or she will say, “You can contribute to your retirement plan to lower your taxes.”

The reality is that 98 % of tax deductions disappear on December 31 of the previous year—so, truth is, YOU’RE TOO LATE!

True tax planning doesn’t happen in February when you’re gathering your paperwork; it actually begins in May, once you get your tax return back.

When your return is in hand, you can review it with your tax planner and create a strategy to reduce your taxes not just for the current year, but for your lifetime.

You should discuss your estimated taxable income for the year: Does it make sense to make a Roth IRA contribution or conversion? How can you lower your Medicare premium? Should you max out your 401(k) contributions? In fact, there are many strategies we use to reduce income taxes, capital‑gains taxes, Medicare premiums, taxes on Social Security, and required minimum distributions.

The key is not to wait until you start receiving tax forms—plan ahead.

Want to make sure you're taking advantage of every opportunity to reduce your taxes — this year and beyond? Schedule a free consultation with us today. And if you know someone who could benefit from this insight, feel free to forward this blog or share the link. Smart planning starts now!