Tax Season Is Upon Us, Are You Ready?

Tax season used to be one of the best times of the year for me. It is not because I love the IRS, it is because it is a puzzle with a potential money reward. If I have played my money right throughout the year, I could potentially get to receive a bit of a pickup. However, if I did not take something into account, I am screwed!

The last few years with job changes and our former president’s changes made to the taxes, I have owed money. It was not a small value either, rather closer to $3 grand! Even with the changes I made to withholdings and other offsets, I was still owing money. I was trying to hit a moving target every year, and was not having much luck.

This year, however, I went all in for the over-correction. I made it to where there was a manual withholding on my paycheck to taxes for $100. In working through my taxes earlier today, I think I have it about where it needs to be. Between getting money back in state and owing some in federal, I am within about $20 over breaking even. So this is my story, think about yours?

With tax season upon us, how does your situation look? Have you ignored it all year just to have to be confronted by the “elephant in the room”? Maybe you have done some planning, but don’t really know how to fully get there? Regardless, this is a time of the year that doesn’t have to suck. If you track all of your stuff throughout the year and work with professional tax people, this can be quite simple.

There have been some big changes from 2020. Now, more than ever, it is important to work with a professional to ensure you get everything taken care of for your returns.