3 Tips for Surviving Tax Season!
As our buddy Ben Franklin pointed out back in 1789: “nothing can be said to be certain, except death and taxes” and that still holds true. So, here we are again… it is a new year, and it is tax prep time. Everyones tax liability looks a little different, but here are 3 tips that ring true for most:
- If I have said it once, I have said it a thousand times, hire a professional! Taxes are complicated, and the more assets you have the more complicated they get! If you need a referral for a good accountant, please reach out. If your taxes are still pretty simple, you can also lean on a tax software like TurboTax.
- No, you do not need to pay that. (…but it never hurts to double check with your lender.) This is the time of year you will get your property tax statement, you also receive your property insurance statements through out the year, so long as you are still paying a mortgage, it is likely your mortgage servicer collects for and pays those bills from your escrow account. That said, it never hurts to confirm with your mortgage servicer.
- When in doubt – share it with your accountant! You should have received a 1098 form from your mortgage company. Your accountant will definitely need that. Additionally, you may be able to write off: mortgage insurance, points paid, home equity loans, IRA payouts, energy credits, home improvements, etc. Here is what TurboTax says on homeowner deductions… be sure to provide all the docs to your professional so they can maximize your return, and minimize your total tax liability. Also, be sure to ask your professional about how tax reform will affect your tax liability.
And remember, a tax return or taxes owed is not a matter of you paying more or less in taxes overall. No matter what you do and how you get paid, the government takes their cut – it is just a matter of if you have over paid or underpaid throughout the year, which results in an overage or a shortage come tax time.
Cheers to minimizing the stress, and maximizing the deductions!
(If you happen to have an accountant you love, or are one who is taking on new clients – please connect us!)