Look for silver linings in tough situations.
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Quick Tax Tip
With Art Werner
CPE Today
With tax season in full swing, many accountants are deep in the trenches, sorting through clients’ paperwork and preparing returns. While proactive tax planning is ideal, there are still opportunities to help clients optimize their tax situation—even in February and March.
Tax expert Art Werner stresses that while year-end planning is crucial, tax professionals can still take strategic steps to ensure clients don’t overpay.
“Sometimes, we have to make the best of bad situations,” Werner explains. “If something unexpected happened to a client—whether it’s a financial loss, a major expense, or a shift in income—there may be ways to maneuver the tax code to lighten the load.”
As you review Form 1040, look for missed deductions, overlooked credits, and opportunities to adjust filings. Even at this stage, clients may be able to:
- Maximize retirement contributions – Contributions to traditional IRAs and certain retirement plans can still be made up until the tax filing deadline and may reduce taxable income.
- Claim overlooked deductions – Many clients forget about deductions for student loan interest, medical expenses, or self-employment costs.
- Consider filing status changes – Some clients may benefit from amending their filing status (such as from Married Filing Separately to Jointly) if their tax liability is unexpectedly high.
“When your client hands you a shoebox full of receipts in February or March, it’s easy to feel like all you’re doing is giving them a history lesson,” Werner says. “But you can still guide them toward making smarter financial decisions moving forward.”
As you prepare returns, identify planning opportunities for next year and share proactive advice. If a client faced an unexpectedly high tax bill, suggest ways to adjust their withholding, estimated tax payments, or investment strategies so they aren’t in the same position next year.
Even in the thick of tax season, accountants can take a strategic approach by analyzing each line of the 1040. Instead of simply reporting the numbers, look for ways to improve a client’s bottom line—both now and in the future.
“This is what it’s all about,” Werner reminds tax professionals. “Go through the 1040 line by line and make sure every opportunity has been taken advantage of. Even if it’s too late to change last year’s outcome, you can still set your clients up for a better result next year.”