Time flies, especially when you’re facing a deadline. Here are five tips to help you achieve a less stressful tax season.
- Get organized. This is not necessarily a difficult step, but it can be time-consuming. See our Tax Return Checklist to help you get your paperwork together.
- Decide if you need help from a tax professional. Consulting a tax professional is a personal decision. He or she can bring expertise to the table, including knowledge of the ever-changing tax code to help find possible deductions and potential strategies to lower your tax exposure next year and beyond.
- Make your 2016 IRA contribution. Making use of tax-advantaged savings opportunities is important, and one of the best is to fund your Individual Retirement Account (IRA) before the tax deadline, April 18, 2017. For 2016, the maximum IRA contribution you can make is $5,500, plus an additional $1,000 catch-up contribution if you’re age 50 or older.
- Consider filing electronically. Because the IRS processes electronic returns faster than paper ones, you may receive your refund earlier. Visit www.irs.gov/filing/e-file-options for more information.
- Reinvest your tax refund. Your financial advisor can help you identify investment options to benefit you and your family – your rainy day fund, a college savings plan or your retirement fund, for example. If you create a strategy for your refund now, you’ll be less likely to let that income slip through your fingers.
The closer you get to the April tax deadline, the busier your calendar may seem. Talk to your financial advisor today about what you can do to help make tax season less taxing.