Tax Time: An opportunity to maximize your profitability

As tax time draws near, it’s a good time to put a spotlight on your financial situation.

Heading into tax season in the midst of a global pandemic sounds like a whole lotta fun, right? Perhaps you’re without power or water as unprecedented storms have you thinking anything BUT taxes. Unfortunately, tax time is approaching and there is no avoiding it. While it’s not a task that many people look forward to, we want to help shift your thinking from obstacle to opportunity.

Top 3 Items of Note for Your 2020 Filing 

To help make things a little bit easier this year, we’ve chatted with some experts in the industry to bring you a Coles Notes edition of what you need to know in regards to filing your 2020 return.

1. As of now, the deadline for personal returns is April 15; last year it was extended to July 15.
2. If you received stimulus payments one or two, you’ll need to make sure to let your tax preparer know so they can be reconciled in the tax return. Note: there is no “clawback” provision (meaning it doesn’t need to be repaid if you got too much, but you could be entitled to more).
3. Businesses that received PPP loans, that funding isn’t taxable if it was forgiven. Furthermore, the expenses that were paid to qualify for forgiveness may be deductible, representing a potential tax break for businesses.

Getting Started: Collect Your Documentation  

Most people don’t enjoy reviewing their income and expenditures, and they certainly don’t like collecting a year’s worth of documents from all sorts of sources to include in their year-end filing. Of course, there are those among us that revel in paperwork and keep on top of all things taxation and savings. It’s a big job though, staying on top of everything.

Did you know that missing just one tax benefit can easily counteract the cost of working with a professional?

There are so many documents and forms, it’s overwhelming. Missing one opportunity can result in the loss of hundreds of dollars, which typically would cover the fees associated with planning services. A good planner will go beyond the tax implications and benefits and dig into your situation more holistically. A simple recommendation for debt consolidation, for example, might save you hundreds of dollars a month. The sooner you get your head around your financial situation, the better.

– Andrew Baker

As specialists in the medical recruiting field, we understand the value of professionals that focus on an area of expertise. Andrew Baker is a PA with an MBA who has devoted his career to helping other PAs with their financial goals.

To streamline the process, Andrew has developed a checklist for PAs to use at tax time. He is currently offering this list as a FREE DOWNLOAD for all PA’s. Click here to get your free pdf and start organizing yourself for your 2020 tax filing.

Tax Time: Use it to your advantage  

Tax time presents an opportunity to look at your financial situation holistically. Work with a financial planner and get a big picture understanding of your income and expenditures, then you can begin to identify areas of concern and opportunities for savings. Andrew goes one step further, working with a trusted accountant to ensure you’re realizing every tax benefit available to you.

I was getting the same request from all of my clients. Everyone wanted to know what to take to the accountant, and if I knew anyone that could prepare their return. I have been working with Cory Pickens, CPA for many years, and it was really a no-brainer. It’s a huge value add to my clients, knowing that the nuances of their financial situation aren’t lost in translation. This year we are stepping it up a notch, and for every client that works with Cory at Pickens Tax & Accounting, we are extending a 15% discount on our fees. 

– Andrew Baker

The idea is, you don’t want to work in a bubble. If there is a disconnect between your financial planning and your year-end filing there is room for error. Your planner and your accountant should be in sync, and willing to work together to make tax filing as painless as possible.

Planning for Your Future

Professionals that have a handle on their financial situation tend to be less anxious with a brighter outlook for the future. You owe it to yourself to understand where you’re at and where you want to go. Financial freedom won’t happen overnight, but it will happen if you make a plan and stick with it.

Find the bright side, it’s fun to dream about your future self. Come up with short-term goals too, so it doesn’t feel like all pain and no gain. Perhaps this year you make it your goal to align yourself with a financial specialist, like our friend Andrew Baker at PA 4 Finance, who can advise and assist you in creating a plan. Click here to read Andrew’s article Tax Time: How to use it to your advantage.

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Who is Lynda Gregg?

Lynda Gregg practiced as a PA in General Pediatrics and Pediatric Cardiology. She desires to help, heal and network. It is no wonder that Lynda has progressed from practicing as a PA to serving PAs. She is a tried and true connector with a passion for the industry and for helping medical professionals flourish in their careers. Click here and connect with Lynda on LinkedIn.