The first of the “Economic Impact Payments” were direct deposited into recipient bank accounts this week.These payments are part of the sweeping CARES Act stimulus bill.The amount is $1200 per person, with an additional $500 for each qualifying child. To qualify the child must be under the age of 17. People who are claimed as a dependent on another person’s return are not eligible.The payments are phased out for higher income earners, with the phase out beginning at $75,000 for individuals$112,500 for head of household filers and$150,000 for married couples filing joint returns The IRS will use the information from your 2019 tax return if you have filed it already. If not, they …
Stimulus Bill and Tax Deadline Information
It’s difficult to overstate the impact the global pandemic is having on all of us.Today, I focus on how recent changes to tax due dates and the stimulus bill might affect you.The due date to file and pay your Federal income taxes has been extended to July 15, 2020. Most but not all states have followed suit. Just this morning 3/27/20 Massachusetts announced they would also extend the deadline.Also extended to July 15, 2020: Q1 estimated tax payments for 2020Deadline for 2019 IRA contributions. If you have already filed your 2019 tax return and scheduled payment of tax due via direct debit in April, you can cancel the direct debit and send the payment in July. To cancel …
Six Things to Know about the Secure Act.
Sweeping legislative tax or retirement reforms typically happen every 10 years or so, but December of 2019 brought us the 2nd major piece of congressional action in 2 years! Just two years ago, we were busy deciphering the TCJA (Tax Cuts and Jobs Act) passed in December 2017. Congress must have hired a new CAO (Chief Acronym Officer) this year. This one has a snazzier Acronym - the SECURE Act stands for “Setting Every Community Up for Retirement Enhancement”. It was signed into law in December 2019. Some of us are scratching our heads on whether this legislation does indeed set EVERY community up for retirement enhancement, but it is easier to say than …
Ladies, are you prepared to handle your finances on your own?
Start by asking the following questions: What do we own? All bank accounts, retirement/investment accounts, real estate, business interests. Where are these accounts and if they are all over the place, why? What do we owe? Mortgages, loans, credit cards, other debt. Do we have life insurance? What kind? How much? Who is the beneficiary? What is my financial situation if you die before me? “You’ll be fine” is not an acceptable answer. Where, exactly, would my money come from to live? Social Security? Pension? Life Insurance proceeds? Investment Portfolio? If necessary, sit down with a fiduciary financial advisor to help figure it …
Good News for Savers in 2020!
2020 is nearly upon us and with it comes higher employee contribution limits for 401k plans. Of course, not everybody is in a position to contribute the max. But no matter how much you are contributing now, I encourage you to increase it for 2020. If you are contributing nothing right now – start with 1% of salary. If your employer matches your contribution, try to capture the entire match. That match is part of your total compensation package – don’t leave your employer dollars on the table! Every time you get a raise – earmark some of it for increased savings. Your balance will seem puny. It will go down when the market does. Then you are buying stocks on …