Turning tax confusion into client confidence

Ever notice how clients come back to you with questions about things you thought were “handled”? Rental properties, depreciation, losses, even when the numbers are correct, clients still look to you for clarity. And honestly, they should. After all, you helped them generate the liquidity to make those investments.

The trick is setting expectations up front. Rental properties often don’t make money in the beginning, and losses aren’t always immediately usable for tax purposes. Helping clients track them and giving them a system to do so prevents surprises and frustration down the line.

Simple strategies can make a big difference. For example, having clients open a separate bank account or credit card just for rental or business activity can be a game-changer. It makes income and expenses easy to track and ensures they get credit for what they’re doing.

The same goes for other tax items. Schedule C income, self-employed health insurance deductions, retirement contributions, and Social Security withholding all need careful attention. Sometimes small adjustments, like maximizing withholding from Social Security, make a huge difference in a client’s experience.

And communication is key. Sending clients and their tax preparers a clear list of accounts and expected forms (1099s, 5498s, etc.) in January is a simple way to prevent errors and questions later. When you proactively manage these relationships, clients feel supported, and you reduce the risk of being “thrown under the bus.”

At the end of the day, it’s about more than compliance. It’s about showing clients that you’re looking out for them, thinking ahead, and making their financial life simpler. That’s how you turn tax confusion into confidence and make a real difference in your client relationships.

Go Deeper With Real Examples

We have this course, Where Financial Planning Actually Hits the Tax Return, that’s perfect if you want to see exactly how the financial decisions you make for your clients show up on their taxes. You’ll see real examples, common advisor questions, and practical tips you can use right away. Plus, you can earn CFP CE credit while you watch, and you can start anytime!

Happy Tax Planning,

Steven Jarvis, CPA