As the year 2020 ends and 2021 begins, it is a great time to think about planning ahead to maximize tax savings and stay on track to meet your personal financial planning goals. This year ends amidst a global pandemic, a presidential transition, low interest rates, high gift and estate tax exclusions, historically low-income tax rates, and volatile financial markets. The following checklist will help you to identify important action… Read More
Victims of the California wildfires that began on Sept. 4 now have until Jan. 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service recently announced. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Currently this includes Fresno, Los Angeles, Madera, Mendocino, San Bernardino, San Diego and Siskiyou… Read More
Many IRA and retirement plan limits are indexed for inflation each year. While some of the limits remain unchanged for 2021, other key numbers have increased. IRA contribution limits The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2021 is $6,000 (or 100% of your earned income, if less), unchanged from 2020. The maximum catch-up contribution for those age 50 or older remains $1,000…. Read More
Do you worry about changes in the economy? Have you recently been fired or a victim of downsizing? Whatever your situation, you may be wondering if you’re eligible for unemployment benefits. For a basic understanding of how unemployment benefits work, read on! Am I eligible? Although specific eligibility requirements vary from state to state, most states have the same basic standards for collecting unemployment benefits. They include: You must be… Read More
There are clear differences between President Donald Trump and Former Vice President Joe Biden (and the political parties they represent) when it comes to tax policies, spending priorities, and overall economic strategies. For this reason, a shift in the balance of power could have wide-ranging implications for future policies and the financial prospects of individuals and businesses. With the nation closely divided, it is difficult to forecast election outcomes based… Read More
Most Americans will eventually receive Social Security and Medicare benefits. Each year, the Trustees of the Social Security and Medicare Trust Funds release lengthy reports to Congress that assess the health of these important programs. The newest reports, released on April 22, 2020, discuss the current financial condition and ongoing financial challenges that both programs face, and project a Social Security cost-of-living adjustment (COLA) for 2021. How Social Security and… Read More
The FAFSA (Free Application for Federal Student Aid) for the 2021-2022 year opens on October 1, 2020. The FAFSA is a prerequisite for federal student loans, grants, and work-study. In addition, colleges typically require the FAFSA before distributing their own need-based aid and, in some cases, merit-based aid. Students must submit the FAFSA every year to be eligible for financial aid (along with any other college-specific financial aid form that… Read More
Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. IRS.gov has the resources and answers to help people through the process of starting a new business. Here are six tips for new business owners. Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business… Read More
On August 8, 2020, the president issued an executive order to allow the deferral of certain payroll taxes during the last four months of 2020, and the IRS recently provided related guidance. This has implications for both employers and employees. Here’s a brief summary of the issues. Already-existing payroll tax deferral provisions There are generally two separate contributions to the Social Security payroll tax (technically, the Old-Age, Survivors, and Disability… Read More
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided a six-month automatic payment suspension on federal student loans through September 30, 2020. In August, the president signed a memorandum to extend federal student loan relief through December 31, 2020. What does this mean for student loan borrowers? All borrowers with federally held student loans will have their payments automatically suspended through 2020 without penalty. In… Read More
