Regardless of whether you prepare your taxes yourself or use a professional’s services, it’s a good idea to gather the information and documentation you need well in advance of your actual tax filing date. Below, we’ve listed some key information you need when preparing this year’s taxes. Your Personal Information The personal information you may need to file taxes may contain information from your prior year’s return, including: Your Social Security Number (SSN), along with SSNs for your spouse, if applicable, and any dependents Last year’s Adjusted Gross Income (AGI) if you’re e-filing your taxes and need to confirm your identity Any tax filing PIN you may have. Your Income Information Your tax return typically requires documentation for all the taxable income you received the previous year. W-2 forms 1099 forms 1099-MISC for contract employees 1099-K for those who receive payment through a third-party provider like Venmo or Paypal 1099-DIV for investment dividends 1099-INT for investment interest 1099-B for transactions handled by brokers Receipts, pay stubs, or any other documentation on income that isn’t otherwise reflected. Your Deduction Information Next, gather information on deductions that help reduce your overall tax burden. These include, but aren’t necessarily limited to: IRA and other retirement contributions Medical bills Property taxes Mortgage interest Educational expenses like college tuition or student loan payments State and local income taxes or sales taxes Charitable donations Dependent care expenses Classroom expenses (for teachers) There are other state-specific deductions that may apply to your situation. Your Tax Credit Information Credits may further decrease your tax burden. Unlike deductions, which may lower your taxable income, tax credits simply credit you a portion of what you’d otherwise owe. Some available tax credits

Getting ready for retirement is both exciting and daunting. While you are likely looking forward to the enjoyment and relaxation that retirement may bring, you are also cautious about ensuring you have enough money to be able to retire in the comfort you anticipate. If your retirement years are on the horizon, below are a few new year’s resolutions that may help put you on track. 1. Add Funds to Your 401(k) and then to Your Individual Retirement Account Funding your 401(k) to the maximum limit means you take advantage of the maximum employer-matching contribution. The maximum employee contribution limit for 401(k) plans increases from $19,500 in 2021 to $20,500 in 2022.  If you are already maxing out contributions to your employer-sponsored 401(k), consider funding your individual retirement account (IRA) as well. You are permitted to have a 401(k) and an IRA; however, whether your contributions to your IRA are tax-deductible depends on your adjusted gross income. The IRS Publication 590-A, found on IRS.gov, shows how to calculate your deduction. For 2021 and 2022, the IRA contribution limits remain the same. All workers up to the age of 50 are able to make a regular contribution to their IRA of up to $6,000 per year. For those over the age of 50, the amount rises to $7,000, which is allowed as a catch-up contribution. If you have the means to add to your IRA each year, it is a great way to increase your account and build it up to your retirement date. 2. Run a Projection Analysis for Your Retirement Those dealing in the financial world run projections all of the time to help them stay on track and

Although you don’t have to wait until January to begin working on your financial goals, a new year may bring a much-needed fresh start on your spending and saving goals. Read on for three financial moves you may want to consider before ringing in the New Year. Open a Health Savings Account (HSA) If you have a high-deductible health plan (HDHP), taking advantage of an HSA may provide you with one of the most tax-advantaged accounts available. As long as funds are spent on qualifying healthcare expenses, an HSA typically offers tax-free contributions, tax-free growth, and tax-free withdrawals. For 2022, you may be able to contribute up to $3,650 (if you have individual coverage) or $7,300 (if you have family coverage).1 These contribution limits increase by $1,000 for those who are age 55 or over, which means you may contribute $4,650 for individual coverage or $8,300 for family coverage. Decide Between a Traditional or a Roth IRA Even if you contribute to a 401(k) at work, individual retirement accounts (IRAs) offer some distinct advantages over an employer-sponsored 401(k). Not only are these accounts typically portable, allowing you to move them to the retirement custodian of your choice, but they may also serve as a rollover account for your old 401(k)s if you leave your employer. Like a 401(k), a traditional IRA allows you to deduct your contributions (if you don’t exceed certain income limits) from your taxable income, reducing your overall tax bill. When you withdraw IRA funds in retirement, you typically pay taxes on them then. A Roth IRA, on the other hand, allows you to make post-tax contributions and then withdraw them tax-free in retirement. Get a Quote on Refinancing Your

Spend as much time fixing your mistakes as you do planning the holidays You probably spend more time planning your holiday gathering than preparing for your golden years. As a result, you make basic mistakes in trying to fund your retirement. Here are a few of the top mistakes people make to screw up this potentially crucial saving. No specific goal. Many people say something like, “I want to retire in my 60s.” Fine – but pinpointing the age when you want to retire is not even half the process. Additional key questions: How much do you need to retire? How much have you saved? Will your investments get you enough income to meet your retirement goals? An example of a specific retirement goal: “I want to retire at 62 with $750,000 of investable assets that yield approximately $45,000 a year of income, including my pension and Social Security.” Consider focusing on desired rather than needed returns. Don’t obsess with how much your portfolio can make and what your friends make investing. How much return your portfolio generates may mean little. More important: Identify how much you need to make to live comfortably in retirement. How much income do you need each month to survive? To live as well as you do now, or better? How does your investment income compare with your other retirement income sources, such as pensions and Social Security? Stop focusing on the rumored 12% return that big-time investors claim to make and start focusing on what you may actually need. No portfolio review. When did you last open your account statement? When did you last sit down with your financial advisor and review your investments

It’s December, and that means it’s crunch time for the gift-buying season. This year, a little thinking outside the box will go a long way toward putting a smile on loved ones’ faces. Whether you’re buying for friends or family, for now or later, you’ll be sure to find the perfect presents in this gift guide! THE COMFORT OF HOME Many of us have gotten accustomed to spending a lot more time at home this year—which is a welcome reality for some and a trying one for others. So make the stay-at-home environment happier for everyone with these ideas for creating enjoyable living spaces. Kitchen Perhaps not surprisingly, sales of foods like tomato sauce, oil, and cheese have skyrocketed this year. It’s a great time to send a friend or family member on a taste adventure with a sampler kit! Hot sauces are always a popular choice for the more daring, as are BBQ sauces and spices. For heartier selections, you can opt for meat-and-cheese baskets or even a vegan jerky sampler pack. Home Gym People are adjusting to working out more in the confines of their homes, even to the point of adding home gyms. So why not help these workout warriors with a perfect gift? Items as simple as exercise bands or hand weights are not only practical but also show that you support their effort to better themselves. Another great idea for the workout warrior in your life? Buying a gift pass or a trial subscription for an at-home fitness program. Living Areas Nothing beats the gift of coziness, especially in frequently used rooms. Throw pillows, pillow covers, and throw blankets are affordable options that can add

During November and December, we want to help you spot planning opportunities that are very time sensitive. Perhaps you… Are considering making year-end gifts to charitable organizations or family members, and need to determine your optimal funding strategy; Are looking to reduce your income tax liability this year, and are seeking loss harvesting and income-reduction opportunities; or Wish to make a high-level survey of your financial picture, ensuring that you aren’t missing any windows of opportunity that close with the calendar year.   Whatever the case may be, the end of the year is an important time to adjust your planning to reflect the changes that are bound to take place in your life. Tracking numerous deadlines and avoiding missed planning opportunities can be challenging during these busy months. To help ensure that you remain on track, we have a checklist that outlines 18 time-sensitive considerations to guide your end-of-year review and tee up any adjustments for the coming year.   Download Our End of Year Checklist   While the checklist can help you spot good ways to identify all the different opportunities to consider, we are always available to meet with you to discuss your finances and goals, and to identify what the best opportunities are for you.       1-05210148

It may be better to give than to receive, but it may be even better to give and see your generosity rewarded. Charitable giving can play a valuable role in your financial and tax strategies. A well-planned gift to charity could provide an income tax deduction and a reduction of estate taxes. Your donation could also help you maintain financial security, exercise control over assets both during your lifetime and after death, as well as provide for your heirs in the manner you choose. To accomplish all of these objectives, you need to develop a plan tailored to your individual circumstances. The following strategies can be used to create a giving plan that is both beneficial and appropriate for you. When planned properly, gifts of appreciated property to charity may allow you to avoid the capital gains tax you would have owed when the asset was sold and may also allow you to receive an income tax deduction, usually worth the fair market value (FMV) of the property. Also, by removing that asset from your estate, you may reduce your potential estate tax burden. If you wish to make a gift of property to a charity but also retain some control over it, a charitable remainder trust (CRT) may be an appropriate vehicle. A CRT might be effective when funded by an appreciating asset, such as real estate or stock in a family-owned business. After the property is transferred to the trust, the trust continues to provide income to the beneficiaries for a period of time, after which the remainder of the trust is donated to the charity. You could avoid capital gains taxes on the assets you donated, and

It may be easy to forget we’re nearing the end of the year. Even during the busy end of year rush, it’s a good time to reevaluate your 2021 finances and turn an eye toward 2022. What can you do now to potentially improve and streamline your 2022 budget? Below, we discuss three year-end planning steps that may make your 2022 finances run more smoothly. Sketch Out Your 2021 Taxes In July 2021, many Americans with young children began receiving a portion of the Child Tax Credit each month—$250 for those age 6 to 17 and $300 per month for those age 5 and under. But while this tax credit may be a boon to household budgets now, it’s not “free” money, and it could increase your tax liability (or reduce your refund) when you file next spring. This, along with some other tax changes in 2021, make it important to do a quick sketch of your tax liability to make sure your withholdings or estimated payments remain on track. You may still make estimated payments to your 2021 taxes through January 15, 2022. If you’ve been under-withholding or earned more income than expected, you still have several months to reduce your April 2022 tax payment. Evaluate Your Asset Allocation Each investor has their own “model portfolio”—that is, the percentage of large-cap, mid-cap, small-cap, and international stocks, as well as bonds and cash instruments they want their portfolio to represent. Even the most model portfolio may shift over time as certain sectors gain value while others stagnate. If it’s been a while since you looked at your asset allocation, the year-end review may be a great time to make sure your

Tax planning can be advantageous when done during the year and well in advance of year’s end. Opportunities exist for you to mitigate tax liability, which may leave more income for you and/or your family. Generally, people put off tax planning because paying income taxes is an obligation. So, this “negative” view can cause frustration. It is often simpler to say, “Let’s see how everything shakes out between January 1 and April 15.” However, after December 31, all you can do is deal with your tax liability. On the other hand, if you take care of the tax planning now, you may save more on April 15. Considering doing a trial tax return based on your projected personal income and deductions. Afterward, you can adjust your W-4 Form accordingly. If you expect to have income that is not subject to withholding, review your required quarterly estimated tax payments. If you fail to have enough tax withheld or make sufficient estimated tax payments by the end of the year, you may be subject to penalties and interest. Adjust your W-4 or estimated payments to make up any shortfall. It may be beneficial to keep an eye on what is happening in Congress. Tax reform is an ongoing process, and there may be more changes ahead. If you can control when you receive income or take deductions, consider deferring income into next year if you expect to be in a lower tax bracket. Likewise, accelerate your deductions if you expect to be in a higher tax bracket this year as opposed to next. If you expect a tax change for the upcoming year, you may want to revisit this issue. Watch out