Do You Have a Strategy for Tax Season?

We all know taxes aren’t fun. So here’s some tax-related jokes before we dive in:

Q: Why are most accountants so good-looking?
A: Because they have great figures.


Q: Why does the IRS hate Sherlock Holmes?
A: Because he makes too many deductions.


Q: How do you know your child will be a CPA when they grow up?
A: When you read Cinderella and the pumpkin turns into a golden carriage, they ask, “Is that ordinary income or capital gain?”

Alright, all joking aside, it’s nearly tax season, which means it’s time to consider if you have a strategy to handle them. Some people love to make sure they get a refund each year rather than having to cut the government a check at tax season. Most importantly, you should consider how your tax strategy affects your overall financial plan.

“Pay unto Caesar…”

It’s said that there are only two things that are certain in life: Death and taxes. In Mark 12:17, Jesus says, “Give back to Caesar what is Caesar’s and to God what is God’s.” Around 210, you’ll often hear Phil say that we need to pay the IRS (“Caesar”) what they’re owed. But not a penny more!

The reason we say this is because when you overpay on your taxes, even if you get it back in a refund come tax season, you are essentially loaning your dollars interest-free to the government. Think of all you could do with those dollars if you invested them or used them to pay toward a mortgage or loan payment.

Having an intentional tax plan helps you keep your dollars working for you.

When do you need help with a tax strategy?

Did you know that the federal tax laws and regulations are made up of over 10 million words? It’s important to know how complicated your taxes can be and when to look for help to ensure you keep the maximum in your pocket. If you have a W2 and no other income or special exceptions, then your taxes are fairly straightforward. Above all else, we recommend talking with a CPA or tax attorney if you want a second pair of eyes to help you decipher those 10 million words.



Besides the benefit of making sure you are only paying the IRS what you are required, for some people, doing your own taxes is a huge pain and time consumer! If that’s you, then you might consider paying a CPA to file your taxes for you. The benefits are that a CPA who specializes in taxes can help make sure you are getting the maximum amount in a refund and advise you on the number of deductions to take in order to keep the most money in your pocket year-round.

Retirees and business owners (even if it’s a small side business) have a little more to consider as we approach tax time. Also, if you are a contract or freelance employee, then you are going to want to consider hiring a professional to help make sure you have a strategy in place for your taxes as you will likely need to make scheduled payments.

Listen: Preparing for Tax Season – Episode 1 & Approaching Taxes in Retirement Strategically – Episode 2

How your tax strategy impacts your overall financial plan

Like it or not, taxes are a big chunk of any financial plan. That’s why we stress the importance of planning for them whether it’s for the upcoming tax season or in your retirement plan overall. What we don’t want to happen is you get to retirement and begin to take the required distributions only to get surprised when Uncle Sam takes his cut.

Tax strategies are no easy feat. That’s why it’s so important to turn to a professional, especially when your finances have added levels of complexity. A tax professional can help you reduce the impact of taxes on your overall financial plan so you can keep those dollars working on your behalf.

210 Financial is more than just numbers. The “210” in our name stands for a childhood home that represented safety, love, and family. That is what we want to provide for everyone that we care for. Welcome home. Welcome to 210.


Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor.
Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investing involves risk, including the potential loss of principal. 1696923-3/23

Content prepared by Savage Content Collective

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