Lazy Days of Summer? Think Again!

Now that you have filed your 2008 taxes whatever will you do with you “free” time over the summer? Taking a well deserved vacation or relaxing by the pool both sound like very good options. However, now is not the time to get lazy about your finances. During the summer months is the perfect time to consider a mid-year financial review. Completing a review in the summer allows time for you to see any potential tax liabilities you may be headed towards and gives you time to make corrections, if possible. This is also a good time to see how certain life events such as a new job, new baby or marriage will impact your tax liability.

The recent passage of the multi-billion dollar stimulus bill has made significant and sweeping changes to the federal tax code. These changes are designed to affect most taxpayers in some way in an effort to revive our economy. Of all the changes made that could potentially affect the most people is the Make Work Pay credit. This credit reduced the current tax tables employers use to figure federal withholding to allow employees to take home more money in their paychecks. However, this credit may place some taxpayers in a situation where they are now unknowingly paying less withholding for the remainder of the year and may end up with a tax liability or a lesser refund than anticipated come tax time. Now is the perfect time for you to determine where you stand.

Mid-year financial reviews help you determine whether you are on the right track for the upcoming tax year based on your current financial position and tax laws in effect. These reviews could include a basic tax plan for the upcoming tax year or could be more extensive and include multiple years and various “what-if” scenarios for you to consider. The reviews may also include assistance with budgeting and credit counseling, if needed, and a business analysis if you are an entrepreneur.

So how can accountants like myself seemingly see into your financial future? Well, we can’t. But skilled accountants use the rules the IRS has given us in the Internal Revenue Code to play the tax game to your best advantage based on the financial and personal information they receive from you. The analysis provided in a mid-year tax review allows you to make informed decisions and take a proactive approach to your finances. So enjoy your summer but remember to take advantage of the affordable Mid-Year Review services New Genesis Financial provides and take control of your finances today!