Tax Day is almost here! A friendly reminder that April 15, 2025 is the deadline for filing your 2024 tax return (or filing for an extension). It’s also the last day to take care of certain tax-related tasks that can benefit your financial plan. Here are a few quick points to keep in mind as we approach the finish line of tax season:
• File on time, or file an extension: If you’re not ready to file by April 15, you can file Form 4868 for an automatic extension, which gives you until October 15, 2025, to submit your return. However, an extension to file is not an extension to pay any tax owed. If you suspect you owe taxes, you still need to pay that amount by April 15 to avoid interest or penalties . In other words, April 15 is a hard deadline for paying Uncle Sam, even if you postpone the paperwork. If you’re expecting a refund or know you don’t owe, an extension is less risky (though you won’t get your refund until you do file).
• IRA contributions: One opportunity that ends with the tax deadline is the chance to contribute to your IRA for the 2024 tax year. You can still make a 2024 IRA or Roth IRA contribution up until April 15, 2025 if you haven’t already maxed it out. This is a great way to potentially reduce your taxable income (if contributing to a Traditional IRA and you qualify for a deduction) or to boost your tax-free retirement savings (if contributing to a Roth). If you have questions about whether you’re eligible or how much you can contribute, let us know. We can help you figure out the best move before the deadline.
Tax season is also a good time to think about tax planning in general. Taxes and financial planning go hand-in-hand. Decisions about investments, retirement account withdrawals, and asset allocations often have tax implications. For instance, we strive to place investments in a tax-efficient way (using tax-advantaged accounts when possible) and plan for things like required minimum distributions and Roth conversions with an eye on minimizing taxes over the long term. If you have any tax-related questions or want to strategize about next year, don’t hesitate to reach out. While we don’t prepare tax returns, we’re happy to collaborate with your tax professional or give guidance within our scope. The goal is to help ensure your financial plan is as tax-savvy as possible.
Final reminder: April 15 is coming up fast. Make sure you’ve either filed your return or requested an extension by that date, and take advantage of any last-minute planning opportunities like IRA contributions. Being proactive now can save you stress later!
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