We recommend you submit your tax forms to your tax preparer as soon as you receive them so they can prepare your return. Then, consider waiting to file until the end of March in case there is a correction on one of your tax forms.
Have more tax questions than answers?
Work with financial planners who see tax planning as a vital part of your financial success.
Dig Deeper: Tax Planning Insights
Untangle the complexities of taxes with knowledge from the investment experts our clients trust.
Ask the planners: How to (legally) lower your taxes
In this episode of Ask The Planners, our team of financial experts share their best guidance to help you optimize your tax strategy.
Go from informed to empowered.
Working with an Edelman Financial Engines planner means you have a partner who can think about your tax strategy all year – as part of your comprehensive financial plan. They can coordinate with a team of experts so you can unlock new ways to help build, grow, protect and preserve your wealth. And, when needed, they can also connect you with a tax professional in your area.
Common questions at tax-time
A correction is when there is a reclassification of income or distributions: A fund or investment may need to reallocate amounts to different categories (such as dividends, capital gains or return of capital) after additional accounting or tax information becomes available. You will receive a corrected 1099 if there is reclassification in one of your holdings.
You can request an extension, which will give you an additional six months to file. It is important to know that an extension to file does not equal an extension to pay. If you owe taxes, they still need to be payed before the April 15 deadline to avoid potential penalties and interest on the amount owed. Work with a tax professional for answers about how to file an extension.
Tax planning is integral to helping maximize and manage your wealth. Tax considerations shouldn't be reactive; you need a tax-savvy partner who can help you understand the tax implications of the financial decisions you make so you can keep more of the money you work hard to earn.
Tax planning should happen every year and every time you make a major financial or life decision. Don't just consider what you want to plan for in the next year, but also many years into the future. Awareness of annual tax filing deadlines and requirements imposed by the IRS is only one small component of the tax planning equation. Our tax laws are also more complex than ever. Forward-looking tax planning should account for both our evolving tax laws and changes to your financial situation.
By working with your financial planner and your tax professional, you can better understand how the choices you make today may impact your future wealth. With your goals and overall life intentions in mind, we'll work with you to understand your complete financial picture. Then we can better assess potential tax benefits and identify opportunities for tax optimization.
Potentially, just like when markets are pulling back and there may be opportunities to harvest losses – the other end of the spectrum also exists where capital gains may be offset in the same year by losses in other investments. Potentially, just like when markets are pulling back and there may be opportunities to harvest losses – the other end of the spectrum also exists where capital gains may be offset in the same year by losses in other investments.
We offer forward-looking tax planning services including tax-efficient strategies that can help you preserve and elevate your wealth. Tax planning sits alongside your overall financial planning and helps to maximize the efficiency of your investments as well as the financial decisions you make over your lifetime.
Your financial planner can bring in our experts from the tax planning team to collaborate on your tax planning as a part of our integrated wealth management approach. We work as an orchestrated team to help ensure you are matched with resources for your needs.
