Tax season is upon us, so while you are going through all your forms, statements, and records, be ready to address some of the following questions with your tax advisor:
1) What are your personal and professional goals for this year?
2) What were your savings goals? Were they realistic? Did you meet them? How will they change?
3) Are you working within a budget? Do you track ALL of your expenses?
4) Why do you have such a large tax bill for interest and dividend income?
5) Why did you receive such a large tax bill for capital gains without seeing the account performance?
6) Are you taking advantage of allowable deductions through your business or employer?
7) Are you taking advantage of any loss carry forward amounts? If not, why not?
While this is not an exhaustive list, it will give you the guidance to confront what you need to improve and confirm what you are doing well. Taxes are based on facts and their supporting documents, so make sure that your advisors understand all of the pieces of your financial puzzle to help you figure out and potentially reduce your tax liability.
Did You Know? More than 20 percent of returns filed on paper have at least one error; this can raise the odds of an audit or delay a refund. Consider E-filing to save you a potential headache.