It is crucial to understand your tax situation and how you file each year. Do you file Married Filing Jointly? Do you use TurboTax or Intuit? Do you have a CPA or tax professional assisting you?
Ask yourself whether you prioritize saving money on preparation fees or whether you value strategic insight that can reduce your long-term tax liability. Understanding your tax situation can make a significant difference in how much you ultimately pay—or save—with the IRS. Knowing your situation is the foundation of good financial decision-making.
How do I file my taxes?
Going back to the basics, it’s important to know how you file—whether through an online provider or a CPA professional. Keep a few key factors in mind:
Your stage of life. Are you single, married, or do you have dependents?
Your income and deductions. Do you take advantage of the standard deduction or prefer to itemize? Are you charitable?
Your assets and business activities. Do you own a business or rental property? Are you familiar with depreciation and how it affects your return?
It’s also important to know which state you file in, as state tax laws can vary widely. Having clarity on these details ensures your filing process is accurate and strategic.
Value Add of your Tax Professional
If you don’t know the answers to the questions above—or even if you do—a tax professional can help you understand how all the pieces fit together.
A CPA (Certified Public Accountant) or EA (Enrolled Agent) is licensed to prepare and file taxes on your behalf. Working with one provides not only compliance but also strategy.
Financial advisors should “know enough to be dangerous”— and be able to connect your tax strategy with your investments, income sources, and retirement planning. A collaborative approach between a CFP® professional and a CPA allows you to operate at full efficiency.
These professionals’ value lies in helping you save money now and in the future, for example, by guiding you through Roth IRA contributions or Roth conversions. Staying up to date with ever-changing tax laws, such as recent legislative acts, ensures that your strategy remains proactive rather than reactive.
Implementing the Strategy
To implement your tax strategy effectively, you’ll likely need to work with both a financial advisor and a CPA or EA. In some cases, your financial advisor may also be an enrolled agent, providing a more holistic approach to your tax situation.
A team-based approach—with multiple sets of professional eyes—ensures your strategy is thorough and customized. Open communication between your CPA and financial advisor is essential, especially when realizing gains from brokerage accounts or adjusting income to balance long-term tax efficiency.
As Dave Ramsey often says, this might involve using a “bridge account” to create flexibility between tax-deferred and tax-free growth strategies.
Ultimately, implementing the strategy means staying fluid—continuously reviewing your income, investments, family changes, and new laws to ensure you’re optimizing your tax situation each year.
It’s not about avoiding taxes—it’s about paying them in the smartest way possible.
Conclusion
Knowing your tax situation is one of the most empowering steps you can take toward financial confidence. It allows you to work with professionals who not only understand complex topics but also have the heart of a teacher, helping you learn along the way.
At Whitaker Myers Wealth Managers, we believe filing your taxes doesn’t have to be stressful or confusing. Working with a team of tax professionals and financial advisors provides immense value by uncovering opportunities and questions you may not have even known to ask.
After all, you don’t know what you don’t know—and that’s exactly why expert help matters. Implementing smart tax strategies can help you save money, build wealth, and minimize unnecessary taxes for years to come.
Importance of Knowing Your Tax Situation
January 27, 2026
Drew Hodgson
Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.
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Whitaker-Myers Wealth Managers is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed.
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