TOPEKA, Kan. (KSNT) – Kansas has been named one of the least tax-friendly states in the nation.
According to a study done by Kiplinger Personal Finance, Kansas ranks just 10th compared to the other states.
This is because of higher than average income, sales and property taxes.
The study breaks down state-by-state taxes in detail. But, according to Certified Financial Planner Jim Hanna, there are things you can do to save money, not just during tax season, but year round.
“Trying to proactively manage your taxes is really one of the best things people can do, and the keyword in that sentence is ‘proactive’,” explained Hanna of Heart Financial Partners. “So, most of us just file our taxes and we don’t really think much about ‘how could we save money?’. So I think a good exercise would be to review your tax return and not just file your taxes but try to think of proactive ways to save taxes.”
Hanna suggests doing your own research or meeting with a financial advisor before filing your taxes. Things, like donating to a charity or sending a child to college, are tax-deductible and there are other deductions available that can really add up.
“It’s up to us to know the rules. I think even if you’re paying someone to prepare your tax return, you still want to read through it and understand each line as best you can because you might be able to impact those lines,” added Hanna.
He also said it’s important to start thinking of these things early. Don’t wait until retirement to seek help on your taxes or to create a financial plan.