Your tax return is more than a tally of what you owe Uncle Sam. It’s a roadmap to financial planning, giving insight into investment, retirement and estate planning needs.
“Tax season gives us a snapshot of our total financial picture,” said Miguel Palma, CPA/PFS, with Palma Financial Services, Inc. “With W-2s, 1099s and other paperwork handy, it’s an important opportunity to assess where you are and to make adjustments that can move you closer to your financial goals.”
This year, in particular, the need for financial planning is more important. Tax rate changes implemented as part of the American Taxpayer Relief Act passed in January could affect financial strategies. It could make sense, for instance, to accelerate income into a specific time period through capital gain harvesting, income tax bracket harvesting and Roth conversion planning. Portfolio allocation between taxable and non-taxable accounts could also become more important, depending on your circumstance.
“It’s necessary to understand how these changes could affect your financial situation and to plan now for appropriate investment, retirement and estate strategies,” Palma added.
As a CPA with the Personal Financial Planning (PFS) credential, Palma has demonstrated robust knowledge in tax, investment, retirement, estate and insurance planning and committed to ongoing education.
To speak with Miguel Palma about using the tax return for financial planning call Palma Financial Services in Dublin, CA at 925-307-5454 for a free, no-pressure, consultation.