The Benefits of Reviewing Your Tax Return

It seems that each and every year when our firm reviews tax returns in consultations and second opinions we find dozens of missed tax savings opportunities: whether it be missed deductions, forgone strategies, less than ideal business entity or real estate structures, or simply improperly reported figures.

This holds true whether you do your taxes yourself with an online software or use a professional. Sometimes these missed opportunities are due to honest mistakes, other times it is due to tax documents with improper figures such as 1099s from investment firms, but more often than not it is due to the complex tax code and the lack of awareness of the potential strategies available to you and how to properly implement or report them when filing.

Every year we are reminded of the importance of reviewing tax returns to make sure that these savings opportunities aren’t continuously missed in future years, and you pay more in taxes than necessary or have to pay penalties that could have been avoided. 

In this episode, we review some of the areas of your tax returns you should pay more attention to, and some of the potential strategies to be on the lookout for. 

More specifically, I discuss:

• The first steps to take before beginning your tax preparation
• What to look out for when receiving tax documents such as W-2s and 1099s
• Common pitfalls and errors to watch out for when gathering information and inputting it into your individual tax returns
• Commonly missed deduction opportunities for business owners
• Potential carryover losses for beneficiaries of a trust or estate
• What to do with your newfound tax savings

Resources:

• Access Show Notes and Sign Up for the Retired·ish Newsletter HERE
• Free Retirement Jump-Start Analysis
• Ask Cameron A Question!

The key moments in this episode are: 00:00:00 - Missed Tax Savings Opportunities 

00:01:29 - Importance of Reviewing Your Tax Return 

00:03:05 - Checking Tax Documents 

00:08:25 - Providing Accurate Information 

00:11:52 - Tax Considerations for Investments 

00:16:08 - Understanding Tax Loss Carryovers 

00:17:06 - Taking Advantage of Market Decline 

00:18:38 - Managing Tax Savings 

00:19:35 - Seeking Second Opinion and Getting Retirement Planning Resources 

00:20:56 - Investment Risks and Tax Considerations