()Tax time is right around the corner. Although many people are still facing financial difficulties due to the ongoing Coronavirus pandemic in the aftermath, the IRS has now announced that taxes will be due May 17, 2021. You should organize your tax materials now, if you haven’t already.

“CFP® professionals are uniquely qualified to guide you through these uncertain times,”According to CFP Board’s website, the non-profit organization is dedicated to supporting professional standards for personal financial planning.

A CFP® professional can provide financial advice and support as you organize and prepare your finances for tax filing.

As April draws near, here are some tips and tricks to tax planning:

  • Save some cash. Check your cash flow to ensure that you have enough cash on hand to pay your taxes. Move cash from one bank account to the account where you will pay your taxes. If you don’t, you could end up creating a tax liability that could last months.
  • Retirement accounts should be reviewed. Check with a CERTIFIED FINANICAL PLANNER™ professional if you aren’t sure of the funding limits of any individual retirement accounts (IRAs) or Roth IRAs. Maximize your contributions to these accounts each calendar year to lower your tax burden and optimize your retirement savings.
  • Consider quarterly payments. You can reduce the pain of having to pay a large April tax bill by making quarterly payments on your estimated tax. For contract workers or freelancers whose incomes are inconsistent, quarterly payments may prove to be very beneficial. Ask your financial advisor if you would benefit from quarterly payments.
  • Your IRS Form 1099 is available. It is possible to make mistakes, so ensure you carefully review the schedules that are attached to your 1099 forms. Make sure you check whether municipal bonds interest is exempt from tax. Qualified dividends and other preferentially-taxed income must be correctly reported. Basis information for capital gains should also be correct. You should immediately report any errors on your 1099.

You can also access the IRS website to view the most recent tax laws, as well as the website of your state’s income tax boards.

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