Advisors run through tax season checklist
Everyone loves getting a little extra money in their pocket when it comes to tax season. With the end of January fast approaching, clients – and advisors – should start getting ready to file.
The IRS will begin accepting 2023 individual income tax returns starting next Monday, and advisors are being reminded to start having those conversations with clients, especially when it comes to tax preparation.
While it may be good to be ahead of the game, some advisors say submitting too early can result in time wasted and amendments to tax forms.
“Don’t rush to file your taxes,” says Kashif Ahmed, certified financial planner and president of American Private Wealth. “Last year, my own final 1099 came on April 14. Investment firms have the right to send it to you until the very end, so why rush to do your taxes?”
Scott Keegan, COO and wealth advisor at Gertsema Wealth Advisors, says one thing his firm has added to its practice recently is using Holistiplan to write letters to clients who make charitable donations.
“It’s so hard for tax preparers to know that a client did that unless they have some sort of documentation saying that they did it,” Keegan said. “We, the advisors, are doing it for the client. A lot of times they forget to tell the tax preparer … we’ve been sending that letter out to clients, just to make sure that they don’t miss out on that tax deduction.”
Ahmed says he advises his clients that tax documentation like 1099s and W-2s will come when they need to, so clients shouldn’t be worrying about them – especially since advisors have no control over when the forms arrive.
“Investment firms very regularly send out updated 1099s,” he said. “This is because the positions you hold may report updated dividends,
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