TMTW #401 How Big an Emergency Fund Do You Need?

Tax and Money Tip this Week:
How Big an Emergency Fund Do You Need?
September 19th, 2018 | No. 401

Click Here to read an article about Emergency Funds
from an article in Bottom Line Personal.


 

 

 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

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TMTW #400 Insurance Tip – Accident Forgiveness Rider

Tax and Money Tip this Week:
Insurance Tip- Accident Forgiveness
September 12th, 2018 | No. 400

I’d like to share a relatively new addition to some insurance companies auto policies:  The Accident Forgiveness and/or Violation/Ticket Forgiveness Rider.  If you have this on your auto policy, it could save you hundreds or thousands of dollars! (it costs me very little)

Here’s how it works:
If you have this rider on your policy and you or someone in your family has an accident or ticket, your insurance company will “forgive” you one time and not increase your rates.  Some insurance companies have an accident forgiveness rider only and not ticket forgiveness, so be sure to ask questions and understand the details of what you are buying.

Call and ask your auto insurance agent or insurance company if they offer this insurance rider that could save you thousands.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #399 Don’t Miss the October 15th Deadline

Tax and Money Tip this Week:
Don’t Miss the October 15th Deadline
September 5, 2018 | No. 399

Final Filing Deadline Reminder

If you need to file a Form 1040 (individual return), the deadline to file is October 15, 2018.  This assumes you had filed for an extension prior to April 17, 2018.  You also have until October 15, 2018 to fund a SEP-IRA for tax year 2017.

As a reminder, putting your tax returns on extension can be a good thing – but penalties to miss the extension deadline can be steep, up to 25% penalty of taxes owed, so make sure that you make the October 15th deadline.

Give us a call if you need help meeting your deadline.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #398 Happy Labor Day

Tax and Money Tip this Week:
Happy Labor Day
August 29, 2018 | No. 398

Wishing you and your family a safe and happy Labor Day

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #397 Don’t Miss the September 17th Deadline

Tax and Money Tip this Week:
Don’t Miss the September 17th Deadline
August 22, 2018 | No. 397

Final Filing Deadline Reminder

If you need to file a Form 1065 (partnership return), Form 1120S (S corporation return) or Form 1041 (fiduciary return), the deadline to file your 2017 return is September 17, 2018.  This assumes you had filed for an extension prior to April 17, 2018.

If you put your personal tax return on extension (Form 1040), you still have until October 15, 2018 to timely file your 2017 return.

As a reminder, putting your tax returns on extension can be a good thing—but penalties to miss the extension deadline can be steep.

Give us a call if you need help meeting your deadlines.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #396 September 17, 2018 Tax Deadline: Individual Estimated Taxes and Tax Planning Checkups

 

Tax and Money Tip this Week:
September 17, 2018 Tax Deadlines: Individual Estimated Taxes and Tax Planning Checkups
August 15, 2018 | No. 396

This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2018 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when they prepare their tax returns.

Coming up September 17, 2018 is the date in which the 3rd installment for individuals that have income that is not taxed and withheld (like W-2 income) is due.

Self employed businesses, e.g. Proprietor Schedule C filers, folks that own S Corporations, Partnerships, LLCs, or other flow-through entities must estimate their unpaid income and/or self-employment taxes for the period January 1-August 31, 2018 and pay ½ of this amount to IRS and/or NC Dept of Revenue on September 17, 2018 and the other ½ of this amount on or before January 15, 2019.  (April 17th and June 15th of 2018 are also Quarterly Estimated Tax Payment dates that have also passed by if you weren’t aware)

The rules for estimated tax payments depend on your modified adjusted gross income for 2018. “Safety” estimates can be designed to avoid penalties and interest, optimize cash flow, and save taxes

 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #395- TCJA Changes to Your Tax-Free Supper Money

Tax and Money Tip of the Week:
TCJA Changes to Your Tax-Free Supper Money
August 8, 2018 | No. 395

​TCJA Changes to Your Tax-Free Supper Money

Here’s how the TCJA (The Tax Cuts and Jobs Act) applied its tax reform to your supper money meal allowances. Before tax reform, you deducted 100 percent of the supper money cost. Now, because of tax reform, your tax deduction for supper money is subject to a 50 percent cut for amounts paid during tax years 2018 through 2025.

The regulations allow supper money as an excludable fringe benefit when the benefit satisfies the following four conditions:

  1. You provide the benefit only occasionally.

 

  1. You pay no more than a reasonable amount.

 

  1. The meal enables you or the employee to work overtime.

 

  1. You do not calculate the benefit based on the number of hours worked. For example, a $20 allowance per hour of overtime is a no-no. You can’t do that. The way to provide the benefit is to give a discretionary meal allowance, such as $56.

If the payment of supper money does not meet the four rules, it is taxable compensation to the recipient, and if that’s an employee, the money is subject to withholding and payroll taxes.

Corporate owners and the self-employed qualify for the supper money allowance under the four rules explained above. The law does not discriminate. It makes supper money available to all who work in the business.

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.Questions or Comments?

Mark Vitek, CPA/PFS, CFP®
…until next time

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