• If you have any kind of complexity in your tax situation -- or doubt that you are doing it right -- hire a CPA. It will be worth every single penny. Good sleep has a dollar value. I do it. 
• Don't forget that you can still make IRA and HSA contributions for 2018 up until Tax Day in April 2019. If you have a fully funded emergency fund AND extra cash laying around, you should absolutely make a contribution if you're eligible. Compound interest is your best friend. 
• Use this as an opportunity to assess if you need to adjust your withholdings at work. A big refund, or having an underpayment, is a sign that your withholding is out of whack. A very small refund should always be your target. Big recent changes in the tax code is bringing a lot of surprises to taxpayers this year (but they may give you a break, just this one time).
• Make sure you don't forget any crucial investment-related tax forms. Before you file, be sure to check the appropriate sections of the custodian's website where your accounts reside. (For clients with TD Ameritrade accounts, use your advisorclient.com login and just go to the tab titled "Statements and Tax Documents." For Betterment users, log in and go to "Documents" then "Taxes.")

IF YOU'RE SKIMMING THIS MONTH'S TASK, STOP HERE AND SAVE MY LIFE

This one requires its own section:

Please, for the love of Gordon Gekko, do not, under any circumstances, try to target a large tax refund every year.

If you take away nothing else from this email, or from me as it pertains to taxes, it is the point above. Here's why:

• A large refund signifies you gave the federal government an interest-free loan
• You passed up on compound interest because it could have been invested
• There is no magic benevolent refund fairy - a big refund is not a free lunch
• You probably won't spend it wisely
• A little piece of me will die if I learn this is something you do

It's OK if this is something you've done in the past. But you've hired me to fix this kind of thing, and now you know. Also, if you don't comply....



Good luck! If you have any tax questions or concerns, just let me know. As always, we'll get you a referral if it's better suited for a tax pro to address. 

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