AICPA Offers Post-Filing Advice – Learn from Your Tax Return
Washington, D.C. (March 24, 2025) - As millions of Americans continue the countdown to April 15, the American Institute of CPAs (AICPA), urges taxpayers to take a lesson from their return. Used properly, a tax return can be a valuable tool when it comes to financial planning, identifying issues that need attention and spelling out your financial behavior over the past year.
“So much of your financial life is documented in your tax return,” says Dan Snyder, AICPA Director of Personal Financial Planning. “And because your numbers tell your story, with some effort, you can develop strategies to help you to save taxes, improve your financial decisions, and reach your life goals.”
What Your Tax Return Can Tell You
Withholding and taxes - Look at how much you are having withheld from your paycheck. Are you overpaying or underpaying? Adjust your W-4 as soon as possible in either case. Your Social Security taxes remind you to check your wage history with the Social Security Administration and if you’re thinking of retiring, look at Social Security claiming decisions.
Sources of income – Are there ways to reduce the amount of taxable income you claim, like maximizing retirement account contributions or Health Savings Accounts? Long-term tax-saving strategies like Roth conversions may apply if you anticipate lower income in the future.
Charitable gifts – Charitable contributions can potentially reduce income, capital gains and estate taxes. Consider the timing to maximize deductions. If you are over 70½, discuss the use of your IRA and a qualified charitable deduction. Gifting appreciated stock may also be an option.
Self-employment income – Ask yourself if you are maximizing retirement and educational opportunities with retirement plans, income shifting, and 529 plans.
Income from a trust – Review the purpose of the trust. Is it incorporated into your estate planning and does it need to be reviewed for current tax law changes?
Medical deductions – If these include long-term care, review your strategy and, if close to retirement, consider your transition strategy from employer health care to Medicare.
Tax Season Document-Keeping
Keep a copy of your tax return itself. Print out any e-filing copies with confirmation of receipt for at least 3 years.
Taxpayers should keep all supporting documents for income and deductions on their tax return for at least three years after the tax filing deadline.
Keeping paper copies is acceptable, but the IRS accepts digital copies as long as they are legible. Scanning and keeping a backup is recommended.
Smart Ideas for Your Tax Refund
Address immediate needs - allocate a portion to pressing expenses like overdue bills or essential home/vehicle repairs.
Build or replenish an emergency fund – use your tax refund (all or part) to build an emergency fund of six months of living expenses. Keep this account separate from everyday checking accounts to reduce the temptation to dip into it unless it’s an emergency.
Contribute to retirement accounts – make sure you are contributing at least enough to receive the full retirement plan match, if your employer offers one. This is free money!
Pay off debt – to help reduce financial strain and improve cash flow, tackle your debt (either highest rate or smallest balance).
Adjust your W-4 – if your tax return is too high, consider giving yourself a monthly raise by reducing your tax withholding.
“While most taxpayers are glad when filing season is complete and don’t want to look at their return again, it’s a great idea to do more with that return than just let it gather dust,” says Snyder. “Take some time to analyze your numbers and give yourself a leg up for the future with a conversation with your CPA financial planner or CPA holding the Personal Financial Specialist (PFS) credential.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 400,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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