Tax Season: Let’s Review Your 2021 Tax Return!

Tax Season: Let’s Review Your 2021 Tax Return!

May 29, 2023

Reviewing tax returns can be daunting and difficult given the many state and federal complexities and often changing rules. So as we rapidly approach this year’s tax return deadline of April 18th, let’s do a last minute run through to ensure you have all your final tax ducks in a row.

Though filing your tax return can be done entirely independent of professional assistance, I highly recommend engaging a CPA (Certified Professional Accountant) to help you do so. Here are three great reasons it is worth hiring an expert:

  • You have a small business or side-hustle: A CPA can help you navigate the world of 1099s and possible tax-write-offs for your business.
  • You own rental property: Real estate investments can be especially tricky, and a professional can help you figure out what deductions you are (or are not) entitled to.
  • You are contacted by the IRS: Should your return get selected for an audit; your CPA will be happy to represent you. In fact, they’re probably the only person you know who doesn’t mind dealing with the IRS.

Build Your Professional Tax Return Support Team

Financial success usually does not happen by accident. You need to be intentional in the steps you take and work with the right team of financial professionals to maximize your chances of success.

When deciding on the best CPA to hire, you should consider how complicated your tax return is. Not only will a professional ensure that your return is correct and includes all possible deductions for your situation, but they’ll also answer your questions as you go along.

Tracking your exposure to various taxes (ordinary income tax, capital gains tax, the alternative minimum tax, the net investment income tax, etc.), and your rights to various credits and deductions, requires time and effort. A CPA can help unravel the various threads, and weave them back into one streamlined filing that removes the stress and confusion this time of year can so often be fraught with.

CPAs and Financial Advisors: The Tax Power Combo

Many money and tax planning decisions call for reinforcement from a financial planning firm, like Truman Wealth Advisors. Therefore, both CPAs and financial advisors should be important parts of your “financial team” and can work together to support your best interests.

While an accountant can suggest tax saving strategies like IRAs, a financial advisor is often needed to execute the plan. You can think of a financial advisor as an “architect and general contractor” and an accountant as an “independent contractor or specialist”.

Financial advisors are licensed to give investment advice and develop comprehensive financial plans. An advisor's services can include portfolio construction as well as risk management, retirement income strategies, estate planning, philanthropy strategies and more.

Use Our Tax Filing Checklist

This spring, Truman Wealth Advisors wants to proactively help you identify tax planning opportunities (and spot potential issues) with your tax returns. It’s your last chance to give your tax return that final once over and address issues (and you may have time to fix issues, if needed).

To assist you in reviewing your filings, we have a checklist for retired taxpayers and one for taxpayers that are still working. Each checklist outlines nearly two dozen considerations to help guide you through your returns and circumstances.

While the checklists can help you spot great ways to identify all the different opportunities to consider, our team is always available to meet with clients and identify what the best opportunities are for you.

If you are not yet a client and want to take a more proactive approach to tax planning in 2022, please reach out and our team at Truman Wealth would be happy to learn more about your specific needs.