The benefits of a post-filing review include:
·
Identifying strategies for minimizing taxes
relevant to the particular circumstances of the taxpayer,
·
Analyzing the effects that additional taxes have
on investment and compensation strategies such as the new Medicare tax on
excess earned income and the new 3.8 percent tax on net investment income
beginning this year,
·
Explaining the criteria that must be considered
in determining when a taxpayer should begin taking Social Security benefits,
·
Pointing out alternatives to paying estimated
taxes that may help to avoid penalties,
·
Identifying the considerations for establishing
a Roth IRA, converting a traditional IRA to a Roth or a 401(k) to a Roth 401(k),
and
·
Spotting errors or omissions which can result in
additional tax savings due to missed deductions or credits.
Look at the total tax paid on last year’s tax return. If you think it is more than you should be
paying or have concerns about next year’s taxes have a qualified tax
professional review your return.
Unfortunately, many professional tax preparers are happy to make it
through tax season, and planning, if any, is delayed until they meet with
clients prior to or during next year’s filing season. Taxpayers who prepare their own
returns (at their own risk) are usually focused on filing their return,
and are unlikely to meet with a professional who could perform a post-filing
review of their tax return for planning purposes.
As part of my financial check-up (see www.wmtfinancialservices.com) I
ask clients for their tax returns for the prior two years. A post-filing review of tax returns can
result in savings and planning opportunities that are often well worth the
reviewer’s fee.
