• A tax return is a financial biography with twists, character development, and insights to uncover.

• Data drives alignment. Asking the right questions can unlock the story behind the numbers.

• Skip the one-stop-shop, use Datalign to find a trustworthy advisor.

That tax return you filed can be a data-rich biography of your financial year. It's full of plot twists, character development, and cliffhangers. By giving it a closer read, you can begin to find specific focus areas to discuss with a trusted financial advisor. We think of it as moving from "financial small talk" to a heart-to-heart.

Start by finding the right advisor using Datalign. Then, consider using this resource to guide a personalized conversation.

The Basics: Understanding Your Tax Return

While the IRS provides detailed instructions, here's a simplified overview of key areas on Form 1040:

• Income (Lines 1-8): This section shows where your money came from – wages, salaries, interest, dividends, etc. (See IRS Publication 17 for more details on income: [https://www.irs.gov/pub/irs-pdf/p17.pdf]).

• Deductions (Schedule A or Standard Deduction): Deductions reduce your taxable income. Schedule A is for itemized deductions (if they exceed the standard deduction).

• Retirement Contributions (Lines 20-22): This shows how much you contributed to retirement accounts like 401(k)s or IRAs.

• Tax Liability: This is the total amount of tax you owe.

With this basic understanding, here are some tax return questions to consider asking an advisor.

Shaping Your Legacy

• Future Planning Question: "How can my income composition (Form 1040, lines 1-8) support my legacy planning goals, considering potential tax implications?"

• Wealth Preservation Question: "How are my investments (Schedule B and D) optimized for tax efficiency to preserve wealth for future generations?"

• Trust and Foundation Question: "Are we fully leveraging available deductions (Schedule A or standard deduction) in conjunction with trusts or private foundations to achieve our philanthropic objectives?"

Charting Your Journey

• Retirement Timing Question: "How do my current savings and income (Form 1040, lines 1-8, and 20-22) project against my desired retirement timeline and lifestyle?"

• Education Funding Question: "Are my investments (Schedule B and D) aligned with education funding needs, and are there tax-efficient strategies we should consider?"

• Long-Term Care Question: "Are we optimizing deductions (Schedule A or standard deduction) in a way that also considers potential long-term care expenses?"

The Strategic Client

• Wealth Building Question: "How does my income (Form 1040, lines 1-8) support my overall wealth-building strategy, and are there ways to optimize it for growth?"

• Investment Strategy Question: "How tax-efficient are my investments (Schedule B and D) as I focus on growing my portfolio?"

• Debt Management Question: "Are we strategically managing deductions (Schedule A or standard deduction) in conjunction with debt repayment plans and other financial goals?"

The Aligned Perspective: Tax Returns Questions

When your financial plan is perfectly aligned with your individual circumstances and the right trusted advisor, magic happens. Your tax return is a valuable tool in achieving that alignment. Take the time to explore it, and let it be a springboard for a productive dialogue. Another key step is finding the right advisor using Datalign, which you can do by clicking here.