You are finally done with sending off your taxes for the year. Now you can breathe a sigh of relief—or can you? With some good preparation and a great financial consultant, completing your taxes can be much easier, and you can save more money if you take a bit of time now to plan for the coming year. Evergreen Advisors of Covington, KY, is here for you all year long to provide great advice about your financial future, and they know that tax season never really ends if you want to keep your money in your pocket.
Try these tips from a financial consultant to get your ducks in a row when it comes to next year’s taxes:
- Max Out Your Retirement Funds: You can reduce your taxable income by contributing the maximum amount to your 401(k), IRA, and any other retirement plan you might have. Don't forget that non-working spouses are also eligible for an IRA, so you can double the amount you contribute.
- Unload Bad Investments at the End of the Year: If you sell any investments at a loss, those losses can be used to offset any gains you have made in other investments. Work with a financial consultant to achieve this goal. Any losses over $3,000 can be carried over to the next year. They offset gains equally, and you can do this year after year. This is commonly referred to as "loss harvesting."
- Take a Look at Your Flexible Spending Account: Work with your financial planner to see how much you should put in your flexible spending account for the year. If you put in too much, you might lose the funds after a year. Not enough, and you miss out on the opportunity to lower your taxable income. This is where a good financial consultant can come in handy to guide you.
Quality financial advice can save you a lot of money and increase your income every time you file your taxes. To learn more about how a financial consultant will help your bottom line, call Evergreen Advisors in Covington at (513) 784-9150 or visit their website for additional contact information.
This information is provided for educational purposes only and should not be construed as advice. You should consult a tax or other financial professional before making any decisions.