Cracking the 8 Social Security Myths – Once and for All
For many individuals planning to retire, benefits paid by social security play a big part in their retirement plan. According to the Social Security Administration, in 2020, about 65 million Americans will receive over $1 trillion in benefits.
Many individuals, though, don’t have a good understanding as to when the best time for them to begin taking benefits. Having a good understanding of how the program works is still a mystery to a lot of people, and the main reason Social Security myths persist.
We’ve reviewed this topic in detail and have come up with 8 misconceptions that seem to surround View full post…
Posted: November 27, 2020 Under: Retirement By: Gust Lenglet
5 Ways to Manage Your Money Better & Take Charge of Your Finances
Do you put off making changes to better manage your money? If you have financial fears, does the prospect of financial planning seem next to impossible? If so, you’re not alone. Almost one half of Americans find this scary, and it doesn’t have to be.
There’s no need to postpone a much-needed review of your financial situation any longer. Getting your finances back on track and knowing where your hard-earned money is going, is not that difficult. Over 80% of Americans say that they would like to be in better control of their finances.
For that reason, we offer a simple checklist of five options that you can review to fit your specific personal circumstances. By following them, you will be well on your way to being able to manage your money better.
First and foremost, get rid of credit card debt. Many individuals are carrying several credit cards with high balances with high fees and very high interest rates. Many are only able to pay the minimum payments required, and in doing so, will be paying on those cards into old age.
The new Tax Cuts & Job Act (TCJA) has been a hot topic most of this year, both in social and financial circles. Tax reform will have different effects on many taxpayers in different situations.
Previous articles have discussed how millennials are affected by the TCJA tax reform, and now another group is in the spot light. Baby Boomers it’s now your turn.
To assist you in visualizing just how tax reform will affect various individuals in the baby boomer generation, we’ve provided a Tax Reform Calculator. Check out the different scenarios and create your own to give you an idea where you stand.
As you hear the drum roll in the background, we are about to reveal the parts of the TCJA that will mostly affect baby boomers.
By now, most of you have either seen the new Form 1040, or have read a lot of comments on the Internet. Is it really the size of a post card? Can you file your taxes using just this new form?
Pretty much. (See the front and back below)
Some may. Probably not for most.
What is the Form 1040?
This form was first introduced over a hundred years ago as the primary summary form for individual tax returns. In the beginning, all Form 1040 returnswere done by hand. Eventually when computers came upon the scene, a few outside vendors were preparing tax returns for accounting firms.
These returns, however, had to be mailed in by the taxpayer. Then in 1986, e-filing was introduced by the IRS, and this was the point that forever changed the method you could file your taxes. View full post…
Posted: August 19, 2018 Under: Income Tax By: Gust Lenglet
How to Use Moving Expenses Deduction to Lower Your Taxes
There are a number of tests that the IRS says you must satisfy to qualify for the moving expenses deduction. The primary test is that your move must be work related in order to deduct any relocation costs. There’s also tests for time and distance that will be explained shortly.
To claim the relocation expenses deduction, you’ll have to use the long Form 1040, but there is no requirement for you to itemize any other deductions on a Schedule A. The IRS Form 3903 is used to list the various allowable expenses, and it’s quite easy to complete.
Once that is done, the total is transferred to the front of the Form 1040, and listed as an adjustment (subtraction) from your gross income. View full post…
Posted: August 27, 2016 Under: Income Tax By: Gust Lenglet
Did you know that if you earn income from your favorite hobby, you’re required to report it on your tax return? I didn’t think so. Most individuals aren’t aware of this and fail to report this income on their tax returns.
There are literally millions of American taxpayers that enjoy a hobby. Most of them, including myself, have only expenses connected with our hobbies. However, many others are able to generate a net profit.
As an example, let’s look at a coin collector. They may be fortunate and come across a rare coin they acquired at a very low cost. They sell the coin to another collector at a high price and this results in a net profit in their favorite pastime for the year.
Anyone contemplating divorce has many issues to consider, the least of which is income tax. However, how your divorce is structured could have a serious impact on your income taxes. The two primary points that most couples are usually concerned with are alimony and a name change, but these are only two of many tax effects of divorce issues that must be considered.
The following are some important issues to consider in a divorce proceeding:
With the arrival of the warm summer months, comes the arrival of many newly married couples. Taxation for a married couple is different thantaxation when you are single. This article will address some of changes newlyweds will face.
Changes. You will want to update any name and addresses changes with all the entities listed in this article.
If you or your spouse has a legal name change with the marriage, you must report your new legal name to the Social Security Administration.
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