TIPS TO BE PREPARED THIS TAX SEASON
Tax season can be stressful, and the deadline will be here before you know it. Here are a few tips to make the process easier:
- Start early: January 23rd was the official start of tax season. Don’t wait until the last minute to start gathering the necessary documents.
- Get organized: Our client vault in eMoney is a great filing system to keep track of all your essentialpaperwork. Using the client vault will make finding the documents you need more accessible. Contact your advisor to set up your client vault or learn more.
- Know the deadlines: Tuesday, April 18th, 2023, is the deadline for filing taxes and requesting an extension. If you are granted a federal tax extension, you have until October 15th,2023, to file your 1040 tax return. An extension to file your 1040 tax return does not give you any extension to pay your taxes. You should estimate and pay any owed taxes by the April 18th deadline to help avoid possible penalties. Click here to see the list of deadlines.
- Take advantage of deductions: Make sure you’re taking advantage of all the deductions you’re entitled to so you can reduce your tax burden. For many Americans, contributions to retirement accounts are tax deductible and are often overlooked. Click here to see deadlines, contribution limits, and income phase-outs for deductions.
- Seek professional help: A life event can complicate your tax situation and create tax-filing complexities. If you’re feeling overwhelmed, have questions, or find yourself in a complex tax situation, don’t hesitate to seek the help of a CPA. RMR works with a network of CPA professionals. We are more than happy to recommend a CPA we are currently working with who can help. Ask your advisor about RMR’s CPA relationships.
- Double-check your filing: If you are filing by yourself or using tax preparation software, double-check your return before submitting your taxes. This will help you avoid costly mistakes and make last-minute deductions that may reduce your tax liability.
Following these tips can make the most of tax season and make the experience less stressful. Click here for the important financial figures that act as a guide.
Disclosure:
Investment advisory services offered through RMR Wealth Builders, Inc. RMR Wealth Builders, Inc. is not engaged in the practice of law or accounting. The information in this material is not intended as tax or legal advice. All investment strategies have the potential for profit or loss.
RMR Wealth Builders, Inc. is a registered investment adviser with the SEC and only transacts business in states where properly registered, or are excluded or exempted from registration requirements.