Five Questions to ask your CPA before “Tax Day”

Tax season is upon us which means your CPA or local tax firm is diligently reviewing your tax documents and preparing your return. As you comb through your own W-2s, 1099s and business expenses, you may find yourself stumped and looking for answers. While your tax team is likely buzzing between paperwork, most preparers are never too busy to answer questions – especially good ones. Here are some common questions you should feel comfortable asking your CPA before “Tax Day”:

1. What are my tax obligations?
   This may seem like a vague question, but it’s important to be aligned with your accountant as you head into each tax season. Whether you have a new connection with your CPA or a long-standing relationship, they will be able to tell you which documents are required to file and when. This can include quarterly, employment, and income taxes for business owners, social security benefits for retirees, or capital gains taxes for investors. This is your chance to levelset with your tax firm before it’s too late.
    
2. How can I optimize deductions and credits across my various income sources?
   Your CPAs are experts at maximizing deductions and credits. Tax deductions are available for individuals who have purchased applicable goods and services that serve as a tax write-off. From office supplies to charitable contributions, your tax team can help you navigate which expenses are relevant for your portfolio. Additionally, tax credits can be useful including childcare credits for parents, electric vehicle credits for certain car owners, health insurance premiums for business owners – just to name a few.
    
3. How can I leverage depreciation strategies on my real estate holdings?
   Rental property depreciation allows taxpayers to deduct the cost of a rental property over a set period of time. There are various ways to optimize your tax portfolio through property depreciation strategies depending on factors like the type of property, cost basis, property repairs, changes in use, and more. Strategize with your CPA on a game plan on how to best maximize your tax benefits as it relates to your real estate assets.
    
4. Should I adjust my estimated tax payments or withholdings?
   If you find that you tend to owe a large amount when your return comes due each year, adjusting your federal withholding amount may be a great solution. First, find your pay stub and check your federal withholding amount. Divide that amount by your gross wages to generate a percentage withheld and compare this percentage to your tax bracket. If this percentage is much higher or much lower than your tax bracket, you may need to make an adjustment.If you tend to have “lumpy” income, or don’t receive a traditional paycheck from which you can withhold, it may be necessary to make regular (usually quarterly) estimated tax payments. You should speak with your tax professional for more details and advisement.
    
5. How do I make sure that you have everything?
   Wildalea clients can find the latest updates and messages in their secure client portal, TaxDome. You may have a pending message from our team instructing your organizer is complete or more information is needed. This is your reminder to check TaxDome!

I hope these questions inspired you to take a deeper look at your tax portfolio. At Wildalea, we value transparent, concierge-level client communication and no questions are off the table. We aim to keep you safe, educated, informed and compliant.