Happy New Year! It’s a new year, a new you, and a new time to do things differently—like your taxes. Tax-filing season is officially here, and there are many things you can do to be prepared and organized. Here are a few simple tips that can help you save time, stress, and money:
- Decide who will prepare your taxes – Major life-changing events such as career, marriage, and death can make taxes more complicated, so it’s a smart move to hire a tax professional to handle your taxes.
- Ensure beneficiary designations are up to date – It may not matter today, but eventually, it can help minimize the taxes your beneficiaries and heirs pay on your assets after you die.
- Max out retirement plan contributions – The money you put in your tax-deferred accounts reduces your taxable income and your tax bill while growing until you need the money in retirement.
- Consider converting traditional IRAs to Roth IRA accounts – These withdrawals aren’t considered income for federal tax purposes, and you don’t have to take RMDs from them every year. (Note: when you convert, it’s taxable income, which will raise your tax bill for that year).
- Review your Account Information Online – Use this online account to securely access the latest information available about your federal tax account. Also, you can see data from your most recently filed tax return on IRS.gov, including information on any Economic Impact Payments and Child Tax Credits you may have received.
- Reconcile Child Tax Credit Payments – If you received advance payments, you need to compare the Child Tax Credit payments you received during 2021 with the amount of the Child Tax Credit that you can accurately claim on your 2021 tax return.
- Claim Recovery Rebate Credit – Individuals who didn’t qualify for third Economic Impact Payments or didn’t receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 tax situation. In early 2022, the IRS will send you Letter 6475 to provide the total amount of the third Economic Impact Payment and any Plus-Up payments that you received.
Paying taxes is inevitable, and with rules everchanging, now might be the perfect time to explore financial options and review your long-term plans. We also know taxes are complicated, so contact us today at (540) 720-5656.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.