What do your taxes teach you?

Beth VadeBonCoeur,
Accountant

With April 15 now in our rear view mirror, we can all take a sigh of relief. So many of us dread tax time and tend to just sign our returns and file our paperwork.

When you get your return, do you take a minute to look it over? If you don't, you should. This is the ideal time to analyze your financial situation and your tax returns can have some helpful information.

• When comparing your income from year to year, is it growing or staying steady?
• Use your year-end statements to track your return on investments, the balance of your mortgage and the contributions to your retirement plan.
• Are you withholding too much? A large tax refund is always nice, but receiving the money in your paycheck might be better for your budget.
• On the other side, no one wants to pay a large balance every year. Are quarterly estimates needed to avoid a large due balance?

Your tax returns can provide you with so much information about your financial well-being. So, don't look at it as an evil document, but as a tool to help you track your financial progress. 

This article originally appeared in Modern Memorialization, Trigard Memorials' weekly electronic newsletter featuring information for the funeral industry. Sign up for your free subscription at http://www.trigard.com/thursdays.