CPAs can recommend a number of strategies that might help reduce tax liability in the future. A variety of laws have changed the playing field. Some of these strategies may be complex and may need input from our financial advisor. Others may be within our control.

2. Should we change our paycheck tax withholding?

Various situations may mean that we need to change our tax withholding on Form W-4 with our employer. If we have gotten married, divorced, or had a baby, we’ll need to make changes.

Also, if we’ve been getting large tax refunds, it may make sense to increase the number of exemptions we take. This is important because the refund we receive after filing our return is actually a return of our own money.

These monies could be available to us throughout the year and invested, saved, or used to pay down debt rather than accumulating in the U.S. Treasury Department only to be returned back to us in the form of a refund. Don’t give your hard-earned money to the government in the form of an interest-free loan.

3. Is there anything our financial advisor can do to help our tax situation?

There is a close relationship between financial planning and taxes. This is why it is good to ask our CPA this question and pass the answer along to our financial advisor. The better informed our advisors are about our tax situation, the more effective they can be in planning and managing our investment and financial affairs.

This is the perfect opportunity for three-way communications between us, our financial advisor and CPA.

Here is another article about why working with a CPA is the best thing you can do this tax season –



Information contained herein does not involve the rendering of personalized investment or financial advice but is limited to the dissemination of general information.