Elevating Your Financial Plan With Tax Strategies

To best serve you, we encourage you to upload your 2023 tax return - once it is completed - to your secure Covenant Vault. We welcome you to Contact Us with any questions or to speak with your advisor.

The incorporation of strategic tax planning is a fundamental element to a solid comprehensive financial plan. It is important to note that not all financial advisors provide comprehensive planning. Our team at Covenant Wealth Strategies carefully and thoughtfully considers tax implications before making any investment selection or before providing any guidance. Additionally, we can work collaboratively with your CPA/Tax Advisor to ensure the appropriateness of the strategies that we recommend for your consideration.

What Is Tax Planning?

Tax planning refers to our review of your circumstances and your tax return to identify potential planning opportunities - both now and in the future - to keep your lifetime tax liability as low as possible. This is different than tax preparation (usually done by your CPA or an online service like TurboTax), which is focused on keeping you compliant with what the government thinks you owe each year.

Why Is Tax Planning Important?

Taxes touch every part of your financial life. Your tax return is a financial fingerprint: it's completely unique to you, complete with valuable clues and information, all of which is buried in dozens of pages and hundreds of numbers. Understanding your return equips us to have more valuable and actionable conversations with you. Additionally, we can equip you to better understand this important piece of your financial picture. This is sometimes referred to as “tax literacy”.

Who Is Tax Planning For?

Everyone! Regardless of your income sources or filing status, nearly anyone who pays taxes can benefit from a professional review to identify relevant planning opportunities. Even those who are not currently subject to income tax may have significant planning opportunities. Many times, our team will identify a handful of tax saving opportunities, both in the current year and in future years.

What Type Of Opportunities Might Be Identified?

Our team evaluates a number of ideas during the financial planning process including: tax efficiency, charitable giving strategies, realizing capital gains/losses, Roth IRA conversions, tax credit eligibility, and more. We can work collaboratively with your tax advisor to run projections to see how potential changes (e.g., filing status, dependents, the sale of a business, stock option exercises, etc.) may impact your upcoming tax liability.

To best serve you, we encourage you to upload your 2023 tax return - once it is completed - to your secure Covenant Vault. We welcome you to Contact Us with any questions or to speak with your advisor.

Disclosure

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.