Tax Season is Over! Now What?
Written by Reed Hubbert and Chad Gifford
Now that April 15th, or Tax Day, is behind us, you may have been left with some pondering questions: What should I do with my tax return? I owed more than expected… Is there any way I can save money on taxes? Whether you got a refund or owed more than you thought, the Aurora team can help answer your tax questions!
What Should I Do with My Refund?
It’s always nice when Uncle Sam decides to give you some money back! Do you have a plan for those dollars you were not expected to receive? If you don’t have a plan set in stone yet, here is a short list of ideas that you could put those refunded dollars towards:
Loading up your emergency fund
Paying down high interest debt
Maxing out your retirement account for the year
Helping with lump sum purchases, such as a down payment on a new vehicle
Finishing paying for school as the semester approaches its end
There are many ways to use your tax refund, and we understand it may be difficult to decide on a “right answer” for those dollars. If you are unsure what the best option may be, we are here to help! Give us a call and we can review all the options available to you!
I Owed More Than Expected... Is There Any Way I Can Save on Taxes?
Did you owe more taxes than you were expecting to? Sadly, the system is made to where we all pay the tax man. However, there may be more tax-efficient ways to spend and save your money. Here are some common ways to lower one’s taxable liability come tax season:
Saving more dollars to pre-tax retirement accounts
Using an HSA to save money for future healthcare expenses
Using a 529 College Savings Plan to save for your kid’s future education
Applying all applicable tax credits
Withholding more dollars for federal/state taxes throughout the year
This will not truly save you money on your taxes, but it will lower what needs to be paid in the spring
Deducting more expenses through your business (business owners only)
Saving for retirement through your business (business owners only)
Do you think your tax strategy is the best it can be? We would love to help review this with you! We can work side by side with your tax professional to make sure your tax strategy is the most efficient for your needs.
The Bottom Line
Taxes certainly are not the most fun dinner table topic, but they are important to discuss with your advisor. While this blog lays out some ideas of what can be done at the end of tax season, it’s essential to understand that every situation is unique and worth reviewing with a professional. Whether you received a refund or need to reevaluate your tax strategy, the Aurora team would be happy to help you make the best decisions for your situation. If you have any questions regarding your taxes, please reach out to a member of our team!
