It’s official. Tax season is here. Many of you have already begun gathering documents and checking items off your to-do list. For most, this time of year is all about getting the return done and moving on. Here at Moneco, we look at things a bit differently.
Filing your return accurately and on time matters but April isn’t the finish line. It’s a check point. When tax prep is handled well, it can create opportunities to make better decisions throughout the year. We tend to think about this season in two parts – preparing the return and then preparing for what happens after it gets filed.
Tax Preparation and Money Conversations
Good prep starts with organization, communication, and process. The smoothest tax seasons are the ones where docs are gathered early, questions are asked along the way, and nothing is left to the last minute. Any family or business money conversations, shared goals and inquiries should be in process by now.
As financial complexity grows, this matters even more. Multiple income sources, investments, business activity, and real estate holdings all add layers to a return. Clean information and tax strategies up front can help to avoid delays and reduce unnecessary stress.
Income may include W2s, 1099s, K1s, or business income. Investments might involve brokerage statements or capital gains. Deductions could be of the charitable format or business expenses. Life changes matter, too. This is where candid money conversations can be pivotal. Starting or selling a business, buying or selling a property, or changes within a family can all affect a return year-over-year. If something changed, it’s usually worth talking about with your tax team.
To keep things moving seamlessly, our firm relies on clear process, candid conversations and secure technology. A centralized client portal allows docs to be uploaded securely, keep communication in one place. The ability to check on the status of your return, or connect with your preparer can go a long way in creating a smooth experience with fewer follow-ups, and fewer surprises.
Tax rules also continue to change, as do income thresholds, and contribution limits. Staying current and connected allows us to apply the most up-to-date guidance without clients needing to track every detail on their own.
Tax Planning
Once the return is finalized, it’s easy to close the book and move on. In our view, this is where the deeper conversations begin. A completed tax return helps to paint a picture. It shows how your income and investments worked together, or where opportunities may have been missed.
Reviewing the return together with the tax team often brings up items that might have been timed differently, investment activity that could create more tax impact than expected or explore deductions that were not fully utilized.
That’s why we like to take a proactive approach to tax planning. There are often opportunities that need to be acted on earlier in the process. This is where tax planning and wealth management intersect. With a clear picture in hand, it becomes easier to coordinate investment decisions with tax strategy, adjust tax withholdings, plan contributions, and plan for upcoming tax law changes.
That’s also why adding tax services to our wealth management offering and a dedication to money conversations was such an easy decision for us. In our view, it can help lead to better planning outcomes.
Looking Past April
Filing your return might close the book on the prior year, but it opens the door to opportunities in the year ahead. For individuals, families, and business owners with more complexity, an integrated approach that blends tax preparation, tax planning and wealth management under one roof can make a meaningful difference over time. Tax season has begun, and we look forward to the conversations.
Important Disclosures
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. Moneco Advisors, LLC and LPL Financial are not affiliated with any other referenced entity.
This commentary reflects the personal opinions, viewpoints and analyses of the Moneco Advisors employees providing such comments and should not be regarded as a description of advisory services by Moneco Advisors or performance returns of any Moneco Advisors client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Moneco Advisors manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.