Are You Prepared for Tax Season?

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Whether you already have a plan in place or know you need to make some adjustments this year, it’s a good idea to check in with a few basics.

As always, reach out if you need some assistance. For now, here are three important (and frequently misunderstood) tax topics to know about: 

Common Deductions

If you’re itemizing your deductions rather than taking the standard deduction, make sure you’re aware of all that apply to you. Here are a few common deductions to know about:

  • Charitable contributions

  • Some medical and dental expenses (depending on your income bracket)

  • Education expenses related to work

  • Home mortgage points

  • Losses due to disaster and theft 

Retirement Considerations

Retirees who paid into a retirement account pretax through an employer-sponsored pension, 401(k), 403(b) or a traditional individual retirement account will likely have to pay taxes on their retirement income. Likewise, you’ll have to pay taxes on any investment income and possibly your Social Security benefit, as well. 

The Question of Self-Employment

Filing taxes when you’re self-employed can be tricky. In general, it’s helpful to estimate how much in taxes you owe each quarter based on your earnings so you don’t get hit with a huge tax bill this coming April. You may also have to prepay some of your quarterly estimated payments before Tax Day. 

To dive deeper into these topics, feel free to refer to IRS.gov or reach out anytime with your questions. 

Want to discuss your financial goals in general? Get in touch today. 

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