Tag Archives: tax planning

Tis the Season…for Review

As 2016 winds to a close, there are a number of tasks that should be reviewed. To help you plan accordingly, here are some things to consider.

Employee benefits – Most employer benefit plans have enrollment periods that coincide with the calendar. Please review your benefit options with your employer and make any necessary changes. Common areas of review include employer-provided health insurance, dental benefits, childcare benefits, Health Spending Account contributions, Flex Spending Account contributions, disability insurance and employer retirement account contributions.

Beneficiary review – Make it a practice to review beneficiary assignments on all your key accounts. This is especially important for your retirement accounts as the beneficiary assignment within the account can supersede a will.

Retirement plan contributions – Review and adjust your contributions to your retirement plans. At minimum, try to contribute enough to take advantage of any employer matching funds in your work sponsored plan.

Insurance review – Consider an annual review of your insurance policies. This includes health insurance, life insurance, disability insurance, home insurance and potential umbrella policies. Are the beneficiaries up to date? Are you happy with the coverage?

Automatic billing – Review your checking account’s automated billing transactions. This is a good time to identify what automatic monthly expenses should be reviewed, reduced or eliminated. You may also discover billing for services you thought were cancelled.

Withholdings – Sometime in December or early January you may wish to review your payroll withholdings. Many of us do this after our tax return is filed. However, if you file close to April 15th, you are losing four plus months of proper withholdings.

Develop your own list – The review suggestions mentioned here impact most of us. However, everyone’s situation is not the same. Use this time to develop a list of your own annual review items. It might include reviewing College Savings Accounts or having an annual sit down to go through an aging parent’s financial accounts.

Cut Your Tax Season Stress in Half

Make things easier on yourself with a few quick steps you can take now to help cut down on tax season stress.  Here are a few suggestions:

Plan to organize early.  Set aside a folder to collect what you’ll need:

  • W-2’s from your employer
  • 1099’s for other income earned
  • Bank and other financial statements
  • Receipts for things like medical bills and charitable donations
  • Childcare information and your dependents’ income
  • If you’ve refinanced or bought a new home – we need those docs, too!

A tax meeting is not necessary if there have been no major changes within the last year.  However, if you feel you do need a tax meeting, please contact our office early to schedule an appointment.  My schedule fills up fast!

A Little Planning Now – A Lot of Savings Later

“I have lots of time to prepare before tax season is here” – is that what you’re thinking? True, you don’t need to worry about your tax prep just yet. However, now is the perfect time to begin planning so you can take advantage of all the opportunities to minimize the taxes you will owe. That starts with making sure you’ve taken ALL the deductions that can help reduce your taxable income.

For example:

• Have you maxed out your retirement plan contributions?
• Have you set aside money for 529 college savings plans or health savings accounts?
• Have you considered which charitable donations you want to make before year’s end?

These are only a few of the several ways you can lower the income you report this upcoming tax season.