Have you had a life event occur in the past year? If you got married, divorced, welcomed a baby, sent a child to college, changed jobs, retired, or had another impactful event take place, you could see some tax implications pop up on your return.
While some surprises are welcome – like receiving a deduction – others are not. My job as a financial advisor is to help you avoid these surprises, and prepare for the effects your life events may have on your finances.
Along with life events impacting your tax bill, they may also impact how much you should withhold throughout the year. If you expect to receive a large refund this year, perhaps you should reconsider what you are withholding moving forward so you can keep more money in your pocket throughout the year. If you expect to owe a lump sum to the IRS this year, perhaps you should take the opposite approach and pay more into your taxes so you don’t dip into savings or take on debt to make your payment.
The best way to avoid surprises during tax season is to keep information flowing throughout the year as events take place. I’m happy to meet with you and discuss how we can best position you for financial success and help you keep as much of your money as possible in your pocket!
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.