Hope you are done with your 2021 taxes! If you have a tax preparer, give them a hug, a big one. It\u2019s been a particularly rough tax season. Tax preparers are leaving the profession in record numbers, and there are not enough new recruits to replace them. Couple this with the major tax legislation enacted over past few years (TCJA, SECURE Act, CARES Act, etc), and you have overworked, overwhelmed, under-appreciated accountants doing your taxes. Not a great situation.<\/p>\n\n\n\n
While financial advisors and planners are not a substitute for a CPA, they should be reviewing your tax return every year. Taxes are the biggest expense you\u2019ll have in your lifetime. This makes tax planning a critical part of any comprehensive financial plan. While most tax preparers see your financial information once a year, financial advisors and planners are actively involved with your personal finances throughout the year. We can offer tax planning strategies that minimize your tax expenses over your lifetime. And we also act as a second set of eyes and can (and do) catch commonly missed items on tax returns like QCDs and backdoor Roths. If your tax return doesn\u2019t report it, it didn\u2019t happen according to the IRS.<\/p>\n\n\n\n
Your accountant probably increased prices this year. If not, consider yourself lucky and expect a price increase next year. Here\u2019s a quick, entertaining video on why accountants are raising their prices:<\/p>\n\n\n\n