Zenith Wealth Partners

Taxicology Report

Alli Masoero, CFP® – Zenith Lead Financial Planner 
Not Rich, Yet: A blog talking about finance in a way you’ll actually understand. 

I know this is a stretch but toxicology reports are used to identify toxins in a sample. Reviewing your taxes is similar in nature. You want to identify opportunities or problems in your tax situation that you can potentially correct. 

I conduct a ‘taxicology’ report for my clients multiple times a year as their tax situation changes. Being proactive can help limit end-of-year surprises that may impact their tax bill. 

When I say ‘taxicology’, a word I made up, I am alluding to a tax projection. A tax projection allows you to estimate your year-end tax burden. This takes all aspects of a tax return into consideration; income, deductions, contributions and more.

Thoughts as I review taxes::

  • Should you itemize your deductions instead of taking the standard?
  • Can we capture any capital losses? Do you have any large taxable gains?
  • Are there ways to reduce your tax burden? Retirement accounts, health accounts, 529s and more may have the potential to reduce tax.
  • Revisit charitable giving goals. You may be able to deduct a percentage of your Adjusted Gross Income “AGI”on itemized deductions for charity contributions.
  • Does it make sense to adjust withholdings on your paystub?

Although you can’t control everything with your taxes, it’s important to stay on top of these things throughout the year. A tax projection helps you do that!

We encourage you to seek out advice if you have any questions while reviewing your tax scenario. Many times clients find comfort in us monitoring it. It’s one less thing they have to manage!

Taxes can be extremely complex, and we do not want you having a year end surprise. If you have not done a tax projection yet this year – I encourage you to.

See you soon!

 

All written content is for information purposes only. Opinions expressed herein are solely those of Zenith, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

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