Tax planning vs tax prep

Published: Feb. 25, 2022 at 7:00 AM EST|Updated: Feb. 25, 2022 at 7:58 AM EST
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RICHMOND, Va. (WWBT) - As you prepare to file your taxes, it’s also good to think about how you can plan ahead for the next tax season.

Instead of just thinking about taxes in February, March, and April. Michael Joyce with the Richmond financial firm Agili says using your tax return throughout the year is really a treasure trove of information.

He says look at your tax return a couple of times throughout the next year to help you make some financial decisions.

“You want to make sure that you have enough paid in via withholding or estimated tax payments, or maybe you have too much paid in then. You can lighten up on that a little bit,” said Joyce.

In the end, he stresses that you may like getting a refund. However, it’s likely better to just get the correct amount of money you should receive in your paycheck so you can invest it for bigger returns or if you’re living paycheck to paycheck have that money now.

Yes, that tax refund at the end of the year is sort of a forced savings for some people, but Joyce says if you get in the habit of saving money yourself even as little as $25 a month you’ll put yourself in a better position.

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