Tax Season!

It’s that time of the year again – Tax Season. For many, it can feel like a bit of a scramble. But getting prepared can make a huge difference. One of the first things you’ll want to do is gather all the necessary documents to ensure a smooth filing process. Your financial advisor can be a valuable resource in this area, helping you organize everything you need and avoid any last-minute stress.

If you work with a tax professional, they can guide you on the key documents to collect. This typically includes things like W-2s from employers, 1099s for freelance or contract income, and statements from investment accounts. If you own property, gather information on mortgage interest, property taxes, and potential deductions like charitable donations or medical expenses. If you’ve made any significant life changes, like getting married or having a child, a tax professional can assist in making sure you take advantage of any credits or deductions available for those situations. If you're uncertain about how to track or report certain income or deductions, your tax professional will be able to go over and clarify things - ensuring you're not missing anything.

Advisors are also great at helping you understand your tax situation in the broader context of your financial plan. They can analyze things like retirement contributions, capital gains, or losses, and guide you in adjusting your strategy if needed. Ultimately, having a financial advisor by your side during tax season can save you a lot of worry and help you avoid costly mistakes. It’s all about being proactive—getting organized, staying informed, and making sure you’re set up for success come tax filing time.

_{*Parallel Financial Advisors and LPL Financial do not provide legal or tax advice. Please consult with your tax or legal advisor regarding your personal situation.}