1040 Overlay: Review clients' tax returns to find planning opportunities

Place Equitable’s overlay pages on top of your clients’ tax returns (1040) to see where you should be focusing to find planning opportunities in cooperation with clients' CPAs and other advisors.

Go to the latest Client and Financial Professional marketing materials.

How does the strategy work?

Your clients’ tax returns can provide a wealth of information for planning purposes.  The 1040 overlay points to specific sections of the tax return that you might find helpful and informative – and provides planning suggestions for each.  It’s as easy as lining up the pages.  The 1040 guide and overlay brochure provide additional resources to help you decide if additional coverage or planning is necessary. This is also a powerful way to work with tax advisors to show them planning opportunities they may not normally recognize.

Strategy in action

Here’s an example of using the 1040 overlay for hypothetical clients, John and Mary:

On John and Mary’s tax return, you can see that they:

Which could mean:

Earn high W-2 income

They may be subject to additional tax on earned income and looking for ways to defer income. If they earn over a certain amount, they may not qualify for deductible IRAs or Roth IRAs, and may want to explore a “Roth IRA Alternative.”

Have interest and dividend income

They may have other assets you don’t know about. You could help them diversify assets into lower-taxed or tax-deferred assets, such as annuities or life insurance.

Take real estate-related deductions

They may own rental property, which is an illiquid asset that requires specialized planning.

 

1040 Tax form page 1

Highlighted product(s) with this concept

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Client materials

  • Documents to view or email to clients
    • 1040 Prospecting Letter for Younger Clients with Children 
    • 1040 Prospecting Letter for Centers of Influence
    • 1040 Overlay Prospecting Letter for Prospects Nearing Retirement 

Financial professional materials

  • Marketing materials
    • 1040 Overlay Guide Book
    • 1040 Overlay Case Study
    • 1040 Form Transparency - Uncover Planning Opportunities Using 1040 Overlay
    • 1040 Overlay Implementation Checklist for Producers
    • 1040 Implementation Checklist for Clients and Prospects
    • 1040 Implementation Checklist for CPA and Attorney
    • 1040 Overlay - Give Your CPAs Something To Do in the Off Season

Please be advised that this webpage is not intended as legal or tax advice. Accordingly, any tax information provided in this article is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and your clients should seek advice based on their particular circumstances from an independent tax advisor. Neither Equitable nor its affiliates provide legal or tax advice.

When sold by New York-based (i.e. domiciled) Financial Professionals life insurance is issued by AXA Equitable Life Insurance Company (New York, NY).

IU-2461011 (03/2019)

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