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Many myths about the IRS and the tax code have recently been amplified online. Here are common myths that could leave you with an expensive tax surprise if you believe them. Learn your lesson in our latest blog post! #TaxPlanning #TaxPrep #TaxTips

Discover several tax myths that could leave you with an expensive tax surprise. Also find out how much Social Security benefits are going up in 2025.

Discover several tax myths that could leave you with an expensive tax surprise. Also find out how much Social Security benefits are going up in 2025.

As tax season begins, it's crucial to stay informed about the latest IRS changes that could impact your tax return. Kiplinger’s recent article outlines seven key IRS changes that could impact your tax return this year—from adjustments to the Child Tax Credit to new 1099-K reporting thresholds and expanded free filing options. At NFP Insurance Solutions, we collaborate with tax and legal professionals to help clients navigate these changes, ensuring tax-efficient wealth transfer, liquidity planning, and financial security. The more you know, the better you can plan. https://lnkd.in/eNmXBbpm

Throughout the year, taxpayers can take simple steps to make the filing season less stressful. Year-round tax planning pointers for taxpayers: ↗ Organize tax records: Create a system to keep all important tax information together. Taxpayers can use electronic recordkeeping or store paper documents in labeled folders. Organized records make tax preparation easier and may help find deductions or credits. ↗ Identify filing status: A taxpayer's filing status determines their filing requirements, standard deduction, eligibility for certain credits, and the correct amount of tax they should pay.  Changes in family life — marriage, divorce, birth, and death — may affect a person's tax situation, including their filing status and eligibility for certain tax credits and deductions. ↗ Understand adjusted gross income (AGI): AGI and tax rates are important factors in calculating taxes. AGI is the taxpayer's income from all sources minus any adjustments. Generally, the higher a taxpayer's AGI, the higher their tax rate and the more tax they pay. Tax planning can include making changes during the year that lower a taxpayer's AGI. ↗ Check withholding: Since federal taxes operate on a pay-as-you-go basis, taxpayers need to pay most of their taxes as they earn income. Taxpayers should check that they're withholding enough from their pay to cover their taxes owed, especially if their personal or financial situations change during the year. To check withholding, taxpayers can use the IRS Withholding Estimator. If they want to change their tax withholding, taxpayers should provide their employer with an updated Form W-4. ↗ Save for retirement: Saving for retirement can also lower a taxpayer's AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income. P.S. CPAs contact DiligenceOS Global Pvt. Ltd. for tax preparation. #taxplanning #IRS #taxtips #withholding #retirementplanning #AGI #taxseason #taxpreparation #filingstatus #taxcredits #taxdeductions #financialplanning #recordkeeping #incomeplanning #taxplanningtips #financialorganization #taxpayeradvice #financialmanagement #personalfinance #CPA

📈 Tax Planning Alert 📈 With Donald Trump's return to the White House, the tax outlook is shifting. Wealthy taxpayers might avoid a major cut in the estate and gift tax exemption. But don't wait—there are crucial end-of-year tax steps to take now! From tax-loss harvesting to Roth IRA conversions, and using a side hustle for write-offs, there are many ways to maximize your savings under the current tax code. Read the full article to learn how to keep more of what you earn! 💰

Yesterday (April 15th) was not only the deadline to file your taxes but also the deadline for self-employed individuals to make their first quarterly tax payment. If that's you, you likely received a voucher from your tax preparer telling you how much to pay. And if you're making a multiple six-figure income, like a partner at a law firm, there's a good chance that the payment was tens of thousands of dollars and threw a wrench in your budget. So how can you make this process smoother and avoid being cash-strapped every time you need to make your estimated tax payment? In this video, I outline four tips to better plan for quarterly estimated payments. 1. Open a new savings account and label it "Taxes." When no taxes are withheld from your paychecks, technically, some of that money is not yours—it's the IRS's. Earmarking the money in a separate account ensures that it is not spent on something else. 2. Funnel money to your tax savings account each paycheck. To ensure that you have enough money when it comes time to make your payment, I suggest starting to funnel a portion of your paycheck each time you receive one. Talk to your tax preparer to determine a good percentage to send to that account each time you receive money. 3. Pay your taxes on time each quarter. The IRS wants us to pay our taxes as we receive income. If you don't pay on time, you may be subject to underpayment penalties and interest. 4. Build a buffer in your savings ahead of making partner. If you're about to make partner at a law firm, I suggest that you start putting away some money in a savings account to create a buffer in a savings account and make the process of making your initial tax payment smoother. Let me know your thoughts! ---------------- If you like this content, follow me on LinkedIn for more tips and strategies on how to create a better financial future for yourself.

Welcome to Tax tip Tuesday! Tax season doesn’t need to be…taxing. Here are some simple things taxpayers can do throughout the year to make filing season less stressful. ✔️ Organize your tax records. Create a system that keeps all important information together. Add you tax records to your files as you receive them. Organized records will make tax return preparation easier and may help you discover overlooked deductions or credits. ✔️ Identify filing status. Your filing status determines your filing requirements, standard deduction, eligibility for certain credits and the correct amount of tax you should pay. If more than one filing status applies to you, you can get help choosing the best one for their tax situation with the IRS’s Interactive Tax Assistant, What Is My Filing Status. Changes in family life — marriage, divorce, birth and death — may affect your tax situation, including their filing status and eligibility for certain tax credits and deductions. ✔️ Understand adjusted gross income (AGI). AGI and tax rate are important factors in figuring taxes. AGI is your income from all sources minus any adjustments. Generally, the higher your AGI, the higher your tax rate and the more tax they pay. Tax planning can include making changes during the year that lower your AGI. ✔️ Check withholding. Since federal taxes operate on a pay-as-you-go basis, you need to pay most of your tax as you earn income. You should check that you’re withholding enough from your pay to cover your taxes owed, especially if your personal or financial situations change during the year. To check withholding, you can use the IRS Withholding Estimator. If you want to change their tax withholding, you should provide their employer with an updated Form W-4. ✔️ Make address and name changes. You should notify the United States Postal Service, employers and the IRS of any address change. To officially change a mailing address with the IRS, you must compete Form 8822, Change of Address, and mail it to the correct address for your area. Report any name change to the Social Security Administration. Making these changes as soon as possible will help make filing their tax return easier. ✔️ Save for retirement. Saving for retirement can also lower your AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income. #tax #individualtax #irs

📈 Tax Planning Alert 📈 With Donald Trump's return to the White House, the tax outlook is shifting. Wealthy taxpayers might avoid a major cut in the estate and gift tax exemption. But don't wait—there are crucial end-of-year tax steps to take now! From tax-loss harvesting to Roth IRA conversions, and using a side hustle for write-offs, there are many ways to maximize your savings under the current tax code. Read the full article to learn how to keep more of what you earn! 💰

Read one of our advisor's blog posts on the difference between tax credits and tax deductions. https://ow.ly/ALgy50TwAxv #millennialwealth #finance #financialeducations #personalfinance #financialplanning #taxcredit #taxdeductions #taxplanning