Navigating Post-Tax Season: Strategies for Success

Justin Hearty

Don’t slow down after completing your taxes. Now is the perfect time to look forward and prepare yourself for next season.

With the April 15th tax deadline behind us, it’s time to shift our focus from tax preparation to post-tax season strategies that can enhance your financial well-being. While the pressure of filing taxes may have subsided, there are still important steps you can take to optimize your finances and prepare for the future. Here are some essential strategies to consider now that tax season has come to a close.

Review Your Tax Return and Plan for Next Year

Although this year’s tax season is over, it’s never too early to start planning for next year’s taxes. Reviewing your current tax situation may help you identify potential tax-saving opportunities for the upcoming year. Consider increasing contributions to retirement accounts, exploring tax-efficient investment strategies, and consulting with a tax professional for personalized advice.

If you expect your financial situation to change in the upcoming year, review your options to decide if taking the standard deduction is best or if itemizing will offer a higher benefit.
If you ended up owing more taxes this year than you were prepared for, now is the time to get a head start on making changes that could lower what you owe.

Organize Your Financial Records

Use the post-tax season period to organize your financial records and documents. Proper record-keeping is essential for tax compliance and financial planning. Create a system for storing and managing your financial documents, including receipts, statements, and tax returns, to ensure easy access when needed.

You may not need these documents now, but you will thank yourself in the future when the need arises because you will be prepared.
If you aren’t a fan of paper records, you can scan and digitize your tax-related documents.A digital filing system will improve your organization and allow quick access when needed.

Consider Tax-Efficient Investment Strategies

Explore tax-efficient investment strategies that can help minimize your tax liability and maximize your after-tax returns. Consider investing in tax-advantaged accounts such as IRAs, 401(k)s, or health savings accounts (HSAs). You should also consider if investment strategies such as tax-loss harvesting and tax-efficient exchange-traded funds (ETFs) will help.

Any of the accounts above will reduce your total taxable income, which in turn lowers your tax liability. If you aren’t already maxing out your pre-tax accounts, increasing contributions to them will offer a great opportunity to lower your tax liability within the current year.

Stay Informed About Tax Law Changes

Keep an eye on legislative developments at the state and federal levels. For example, changes to tax rates, deductions, or credits could impact your tax planning strategies. Stay informed by following reputable financial news sources, consulting with your tax professional and financial advisor, or attending informational seminars on tax law changes.

For example, there is the Tax Cuts and Jobs Act of 2017 (TCJA).These rules are currently in place but will sunset at the end of 2025.
The end of TCJA could mean changes to income tax brackets, standard deductions, and much more.
As you navigate the post-tax season period, remember that proactive financial planning is critical to achieving your financial goals. By reviewing your tax situation, evaluating your goals, and implementing strategic financial strategies, you can set yourself up for greater financial success in the future.

Stay tuned for more insights and tips on navigating the intricacies of personal finance. Your financial well-being is our priority, and we’re here to help you every step of the way.

About Strategic

Founded in 1979, Strategic is a leading investment and wealth management firm managing and advising on total client assets of over $2 billion.

Overview

Disclosures

Strategic Financial Services, Inc. is registered with the Securities and Exchange Commission (SEC) as an Investment Advisor. The term “registered” signifies compliance with regulatory requirements and does not imply a certain level of skill or training.

The information provided on our website, including weekly market commentaries, financial planning articles, and other educational resources, is intended solely for educational purposes. It is designed to offer insights into financial planning and investment management, aiming to enhance understanding of financial concepts, strategies, and market trends. This content should not be interpreted as personalized investment advice or a recommendation for any specific strategy, financial planning approach, or investment product. Financial decisions are deeply personal and should be made considering the individual’s specific circumstances, goals, and risk tolerance. We recommend consulting with a professional financial advisor for personalized advice.

Please be aware that Strategic Financial Services, Inc. does not provide legal or tax advice. The content on this website is not intended to be used as such or as a substitute for legal or tax advice from a licensed professional. We advise seeking guidance from qualified legal and tax advisors regarding these matters.
Investment Risks and Portfolio Management.

The discussion of any investments on this website is for illustrative purposes only and provides no guarantee that the advisor will make any investments with the same or similar characteristics as those presented. The investments identified and described herein do not represent all the investments purchased or sold for client accounts. The selection of representative investments to discuss is based on various factors, including recent company news or earnings releases.

It should not be assumed that any investments discussed were or will be profitable. All investments involve risk, including the potential loss of principal. There is no assurance that investments mentioned will remain in client accounts at the time you view this information.

When index returns are mentioned on this site, they are provided as a general indicator of market conditions and are not representative of any client’s portfolio performance. Indices are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. Therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.

While index returns are used as a framework to report on general market conditions, they should not be construed as an indicator of future performance of any specific investment or portfolio. Discussion of index returns is intended to provide context and insight, not to suggest that clients will achieve similar results. Each client’s portfolio is managed according to their specific investment goals and financial situation.

The opinions and any forward-looking statements expressed in the articles and videos featured in our resource center are as of the date of publication. These statements are based on current laws, regulations, market conditions, and other relevant factors, including third-party data. Given the dynamic nature of financial and regulatory environments, as well as potential changes in market conditions or economic circumstances, the information provided may become outdated or may no longer be accurate.
We rely on third-party data to form our opinions and projections, which means that these are subject to the same uncertainties that affect all data-dependent analyses. As such, we advise readers to exercise caution and not rely solely on the statements made herein for making financial decisions. It is recommended that investors consult with a professional advisor who can help assess the relevance and accuracy of the content in light of the current economic climate and personal financial situation.

Our website contains links to third-party websites as a convenience to our users. Strategic Financial Services, Inc. does not control, endorse, or guarantee the content found on such sites. We are not responsible for the accuracy, legality, or content of the external site or for that of subsequent links.
Contact the external site for answers to questions regarding its content.
The inclusion of any link does not imply our endorsement of the site, nor does it imply any association with its operators. Use of any such linked website is at the user’s own risk.