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Your Monthly Guide to Tax Preparation 

 

As a taxpayer, you have legal responsibilities to file your taxes on time and accurately. As a tax client, you have responsibilities to share necessary information for your CPA to file your taxes on time and accurately. Where do I start? Our team of experts have compiled an annual tax preparation guide to keep you on track each month. 

 

January

Kick off the new year by taking a good look at your first paycheck. Check your federal withholdings number and divide it by your pay. If this amount is less than 10% (less than 15% if you make more than $100K annually), contact your tax professional for further instructions.If necessary, make your fourth quarter estimated payment by January 15. 

 

February

February is the start of “Traditional Tax Season,” meaning it’s time to gather your tax documents. You should receive W-2s and 1099s around January 31. Brokerage Statements will be sent out at the end of February. Request any missing documents from other providers. Before the month ends, complete your tax professional’s organizer and submit your documents for preparation. 

 

March

March means “Tax Day” is right around the corner. Send in any last minute documents for personal tax preparation to your tax professional before the official April tax deadline. 

 

If you have a business, we’ll want to file business tax returns and confirm that you have renewed your annual business registration. If your filing state has Business Personal Property taxes, check on those requirements. In Georgia, for example, almost all fixed assets on the balance sheet are required to be reported. In Idaho, you need to have more than $250K of depreciable value. Some states don’t have a filing requirement for fixed assets at all. 

 

April

It’s officially “Tax Month”. Meet with your tax professional for a review prior to the filing of your personal return. Ask questions and make sure you understand the return. Is there something I should do differently next year? What if I had contributed more to retirement accounts? Do you see any carryovers that I should be aware of for next year, like capital losses or charitable contributions? 

 

If you don’t have all your documents by this point in time, your tax professional may be able to estimate your tax liability so that you can make a payment and extend your filing requirement. Remember, taxes are due on April 15 whether you extend or not.

 

Tip: Consult with your tax professional about whether a first quarter estimated payment is necessary and whether you should pay it prior to the April 15 deadline. Wildalea clients are usually advised to wait until the second quarter. 

 

May

If your return was filed on April 15th, it’s been accepted by the taxing authority and your final return is ready now. Store electronic copies of your completed return and all corresponding source documents. Review any estimated payment vouchers that were printed with your return and understand whether they are required, recommended or not needed. These often print automatically from the professional tax software and are sometimes optional. 

 

June

Summer means that refunds are within reach. If you filed in April, check to see whether you have received your refund. By June 30, refunds should have been received from a timely filed return. Let your tax professional know if you have not received it (bonus points if you let them know you HAVE received it.). Finally, make your second quarter estimated payment by June 15 if necessary. 

 

July

The second half of the year warrants a financial health check-in. If you have a financial advisor, schedule a meeting to touch base. With or without an advisor, it’s a great time to review your life insurance, estate plan, investment performance, and other financial goals for the year.

 

July kicks off “Renewal Season”. For Wildalea clients, you are encouraged to renew your engagement with us now, prior to the beginning of strategy season (August/September). 

 

August

August marks the start of “Strategy Season”. Connect with your tax professional about tax planning and set up a meeting in late August or early September. Before the meeting, collect necessary materials such as your most recent pay stub or your most recent business financials. If your tax professional has an organizer, fill it out in advance. Don’t assume that your tax professional remembers everything. Consider financial changes that may have already occurred or that will occur prior to year end. Send in pay stubs and other relevant information. 

 

September

September brings another quarterly payment deadline – If necessary, make third quarter estimated payments by September 15. If you are on a filing extension, gather the last documents and send them in.

 

Note: Wildalea clients should have had their modeling strategy meeting by September 30 and should have a reasonable estimate of their tax liability. 

 

October

By October, you’ve had your tax planning meeting and set goals with your tax professional. Complete any tasks necessary to implement strategies identified during your tax planning meeting. If you are on extension, personal filings are due by October 15. 

 

November

Before the end of the year, it’s recommended that you check in on your retirement contributions and your withholdings. Consider any changes to your age or situation that may allow you to contribute more. Wildalea clients are encouraged to have a strategy meeting to confirm tax liability and tax strategies before year-end.

 

December

Tis’ the season for giving. Consider final charitable contributions. If you are planning to make contributions to Goodwill, Salvation Army or a similar non-profit, take pictures of your contributions, document the efforts, and secure a receipt. 

 

You may be eligible to get some “tax-free” income before the year ends, so consider tax loss harvesting of capital gains or losses. Consult with your tax professional in tandem with your financial advisor to see if this applies to you. Finally, conduct a final check that all possible tax and financial strategies have been enacted prior to year end. 

 

Get a head start on your annual tax checklist at www.wildalea.com. Wildalea is a full-service provider of tax strategy and strategic tax preparation to make sure that you are only paying your fair share of taxes. It’s our goal to remove surprises, communicate effectively and minimize your tax bill within the clear lines of the tax code. Keeping you educated, informed and compliant.