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Financial Planning x Tax Season: How Financial Planning Can Impact Tax Filing

With tax season around the corner, it’s important to prep everything you’ll need for filing: W2 forms, records of your income, receipts for your expenses, and knowing how to get the most out of certain items in your financial plan! The financial planners here at Creative Planning have outlined the aspects in your financial plan that can help get you the most come filing time, so read on and save on!

Saving for Retirement

By contributing to a tax deferred retirement account, such as a 401k or 403b, you won’t just be saving for your future—you’ll ALSO be decreasing the amount of your income that’s taxable for that current year. When it comes to IRAs, you may qualify for deductible IRA contributions or Roth IRA contributions, however, this all depends on your income level. Similarly, contributions made to Health Savings Accounts can help decrease your gross income for the year and accessed tax-free when you’re retired…a time in your life medical expenses are often higher.

Owning a Business

As a business owner, you’ll be able to qualify for several different deductions, such as office purchases, equipment, insurance premiums, travel expenses, and more! Plus, you can also look into opening your own tax deferred savings account for retirement. However, the plan you’ll be able to open will depend on the number of employees you have as well as your revenue. If you don’t have any employees, not to worry—you can look into opening a Solo 401k plan.

Saving for Education

Because we’re financial advisors, we can’t stress enough how important it is to save for your child’s education as soon as possible. Not only can this help make your child’s life that much brighter, but depending on what state you live in, you may also qualify for deductions on the contributions you’ve made into your state sponsored 529 plan.

Giving to Charities

Making charitable donations throughout the year can give back in many ways: it supports organizations you believe in, helps those in need, and can result in charitable deductions for you come tax season.

Managing Your Portfolio

Having a diverse portfolio is key for getting the most out of your financial plan, but if you don’t have a financial advisor managing it properly, you may be missing out on money-saving benefits come tax time! For example, when securities that are a loss are sold at the end of the year, you might be able to level off your gains, helping keep you out of a high-income bracket for that year.

Whether you need help saving for retirement, starting a 529 plan, diversifying your portfolio, or making smart choices, or you would like a referral for an accountant who will help you get the most out of filing your taxes, we’re here to help! Contact us today to speak with one of our financial planners.


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