5 Last-Minute Tax Planning Tips to File by July 15

CFP Board Ambassador Lynn Ballou, CFP® provides five tips for navigating tax planning during the COVID-19 pandemic.

American taxpayers are preparing to file by the extended tax filing deadline of July 15, while continuing to navigate the COVID-19 pandemic. CFP® professionals are available to support tax planning during this challenging time.

“In these unprecedented times, it is more important than ever to take control of your tax planning strategy,” says CFP Board Ambassador Lynn Ballou, CFP®. “An advisor can help you navigate the 2020 tax changes as you prepare to file.”

To support those preparing to file, Ballou shares five key tax planning tips:

1. Complete your preparations by July 15: American taxpayers should ensure they are prepared to file and pay by July 15 to avoid late fees and other penalties.

2. Understand the impact on quarterly taxes: For those who pay quarterly taxes, the deadlines for first and second quarter taxes have been extended to July 15.

3. Adjust retirement contributions accordingly: The deadline to make eligible and Roth IRA contributions has also been moved to July 15.

4. Review 1099s: To prevent overpaying, taxpayers should check that all details are accurate on investment company 1099s and report any errors to the issuer as soon as possible.

5. Evaluate cash flow: Americans should evaluate their cash flow needs to determine the best time to file between now and July 15. Those who are able to file and pay now may receive their refund sooner. Those who are unable to file and pay now should establish a cash conservation plan to ensure payment is possible by July 15.

For more guidance on tax planning strategies, read a blog post here.

To connect with a CFP® professional in your area, visit www.letsmakeaplan.org.