Tax Return Review Process

How many math errors did taxpayers make on tax returns last year? Answer: Over 12.9 million errors!

What is our process for reviewing the tax return before it is filed?

Every year, we use the Retirement Tax Services 37-Point Checklist to meticulously review tax returns for our clients. This process helps uncover opportunities to reduce taxes, optimize strategies, and plan for long-term financial success. Here's an overview of our approach.

Our review covers key areas of your tax return to identify potential strategies for saving money and optimizing your financial plan, but also the basics:

1. Basic Information

   • Are the following listed correctly? Legal name, SSN, occupation, address, etc.

2. Income and Tax Bracket Assessment

   • Review your marginal tax brackets for ordinary income and long-term capital gains.

   • Evaluate your effective tax rate to understand your overall tax burden.

3. Retirement Account Opportunities

   • Confirm IRA and Roth IRA contributions, including catch-up amounts.

   • Identify opportunities for Roth IRA conversions to reduce future taxes.

   • Optimize investment accounts for better tax efficiency.

4. Charitable Contributions

   • Review non-cash charitable contributions.

   • Explore utilizing Required Minimum Distributions (RMDs) for charitable giving.

5. Investment Strategies

   • Evaluate tax-free investment options such as municipal bonds.

   • Consider harvesting capital gains or losses to reduce taxable income.

   • Discuss strategies for mitigating deferred tax liabilities.

6. Healthcare and Medicare

   • Explore Medicare means-testing and surtax strategies.

   • Incorporate healthcare costs into overall tax planning.

7. Family and Estate Planning

   • Analyze gifting strategies to maximize the annual $15,000 tax-free limit.

   • Review 529 accounts for education savings.

   • Confirm beneficiary designations align with your estate planning goals.

8. Tax Payments and Withholdings

   • Assess annual withholdings and estimated payments for accuracy.

   • Plan to avoid underpayment penalties and surprise tax bills.

Why This Matters

While the IRS focuses on a single calendar year, we take a lifetime approach to tax planning. This helps ensure that every decision supports your long-term financial goals and minimizes your overall tax burden.

Collaborative Tax Planning

Our tax reviews are conducted in partnership with you, your tax preparer, and other financial professionals to provide actionable insights and customized strategies.