Financial advisor weighs in on tax scams and investment opportunities as deadline nears

Published: Mar. 28, 2022 at 12:01 PM PDT
Email This Link
Share on Pinterest
Share on LinkedIn

RENO, Nev. (KOLO) - Few people would consider tax season their favorite season, but given that taxes are one of life’s few constant guarantees, there are things that are important to keep in mind.

The first – is that there are always people looking to run scams.

“The IRS is never going to call you, email you, or send you a Facebook message,” said Kelli Tampio, a financial advisor with Edward Jones.

Tampio says even with the fact that the IRS will write you a letter first, there can still be illegitimate letters, and if you aren’t sure they are real it’s critical to call them before giving anyone your personal information.

With not being scammed the top priority, next on the list might be what to do with your refund this year.

“If you’re anticipating a refund, the first thing to do is to evaluate your own personal financial situation,” she mentioned.

While investing the money might be ideal for some people, for others the priority might be to pay off any outstanding credit card debt or to keep the money for their emergency fund.

“As an investor, sometimes you want extra cash sitting on the sidelines waiting for an investment opportunity as we have seen a lot of market volatility,” Tampio explained.

One of the first things Tampio mentioned regarding getting the most out of your refund is to put it into a Roth IRA given the tax advantages of doing so, but if kids are the priority, there are other options.

“A 529 plan can provide money for college expenses,” Tampio added. “Similar to a Roth, the nice thing about that is in the future, the recipient will be able to take that money out tax free.”

Copyright 2022 KOLO. All rights reserved.