When it comes to taxes, there are two types of people: those who let taxes happen to them, and those who proactively plan for them. The first group often ends up paying what they owe without a second thought. The second group, however, looks for every opportunity to be strategic, aiming to keep more of their hard-earned money. The challenge is that most people don’t have the time, resources, or expertise to approach tax season with a forward-thinking mindset.

Those who plan successfully often rely on the coordinated expertise of both a CPA and a financial advisor. These professionals work together to see your complete financial picture and offer recommendations that align with your long-term goals.

Even if you already work with these experts, you might feel there are strategies you’re missing or questions you don’t even know to ask. Knowing where to start can be a powerful first step toward a smarter tax strategy. This guide outlines 10 pivotal tax-related topics designed to spark meaningful conversations with your financial team and help you move from a reactive to a proactive approach.

10 Key Tax Topics for Your Next Financial Review

Use this list as a starting point for a deeper, more personalized discussion with your advisor. The goal is to encourage you to reflect on your current strategy and uncover new opportunities.

1. Tax Bracket & Filing Status Analysis

Do you know your marginal tax bracket? Understanding which bracket you fall into and how your filing status (single, married filing jointly, head of household) affects your tax bill is the foundation of all tax planning. A simple review with your financial planner can uncover strategies based on your income level. For example, if you are on the cusp of a higher tax bracket, it might make sense to accelerate deductions or defer income to stay in the lower bracket.

2. Tax-Efficient Investment Planning

The goal of investing isn’t just to earn returns; it’s to maximize your after-tax returns. Discussing your portfolio with a tax-aware lens is crucial. This conversation should cover strategies like holding investments for more than a year to qualify for lower long-term capital gains rates. It should also involve a review of how you use tax-advantaged accounts like IRAs and 401(k)s. A well-designed, tax-efficient portfolio should always align with your personal goals and risk tolerance.

3. Strategic Retirement Contributions

Your retirement contributions have a direct impact on both your current and future tax liability. A key discussion point is whether you should contribute to a Traditional or a Roth account. A Traditional 401(k) or IRA offers a tax deduction now, but your withdrawals are taxed in retirement. A Roth account offers no upfront deduction, but qualified withdrawals are tax-free. Your advisor can help you decide which makes more sense based on your current income and what you expect your tax situation to be in retirement.

4. Tax Planning Amid Changing Laws

Tax laws and regulations are constantly evolving. What was a great strategy three years ago might be less effective today. Regular check-ins with your financial planner help ensure your financial plan remains effective as new rules are implemented. They stay on top of these changes so you don’t have to, identifying new opportunities or risks that emerge from new legislation.

5. Estate Planning for Tax Efficiency

Estate planning is about much more than just deciding who gets your assets when you’re gone. It’s also about transferring that wealth to your heirs in the most tax-efficient way possible. A conversation with your advisor should cover tools and strategies like annual gifting, setting up trusts, or using life insurance to help reduce potential estate taxes and preserve the wealth you’ve spent a lifetime building.

6. Tax-Aware Withdrawal Strategies

Once you reach retirement, how and when you withdraw funds from your accounts becomes critically important. A poorly planned withdrawal strategy can trigger unnecessary taxes. You should review the rules around Required Minimum Distributions (RMDs), which typically start at age 73. Discuss strategies for sequencing withdrawals from different account types (taxable, tax-deferred, and tax-free) to minimize your tax bill while creating a sustainable income stream.

7. Tax-Efficient Charitable Giving

If you are charitably inclined, you can align your giving with your tax planning to maximize your impact. Instead of just writing a check, discuss more strategic options with your advisor. This could include donating appreciated assets (like stocks) to avoid capital gains taxes or establishing a Donor-Advised Fund (DAF). These approaches allow you to support the causes you care about while also receiving a significant tax benefit.

8. Healthcare & Medical Expense Planning

Healthcare costs are a major financial consideration, especially in retirement. It’s important to explore tax-advantaged ways to save for these expenses. A Health Savings Account (HSA) is a powerful tool, offering a triple tax advantage: contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. Your planner can help you integrate an HSA into your broader financial strategy.

9. Small Business Tax Planning

If you own a business or have self-employment income, your tax situation is more complex. It’s vital to discuss strategies for managing self-employment taxes, which cover both Social Security and Medicare. Your advisor and CPA can also help you identify all eligible business deductions and decide on the most tax-efficient structure for your business (e.g., sole proprietor, S-corp, LLC).

10. Staying Ahead of Future Tax Law Changes

Beyond current laws, it’s wise to discuss the potential for future changes. Ask your financial planner how proposed tax law changes on the horizon might impact your financial plan. While you can’t predict the future, you can take proactive steps to prepare your portfolio and financial strategy for a range of potential outcomes, ensuring you aren’t caught off guard.

Start the Conversation Today

Effective tax planning is not a once-a-year event; it’s an ongoing process that touches every part of your financial life. The best way to begin is by having an open and honest discussion with your financial planner about these topics.

Bring this list—and any other questions you might have—to your next meeting. By working together, you can build a holistic financial plan that leverages tax efficiency to help you achieve your goals and secure your financial future.