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News & Information

The following is intended as general information and does not represent legal or tax advice. The information presented is the view of the author and not necessarily the view of McLeod Health Foundation. Individual circumstances vary – please consult your legal and tax advisors about your specific situation.

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Twelve Potential Biden Tax Changes to Keep an Eye On

President Joe Biden used the budget reconciliation process to push through his recent COVID-19 relief package, a powerful avenue that's only available once a year. Well, the next federal fiscal year begins on October 1, 2021, and budget reconciliation will become available again, which means Biden and the Democratic Party-controlled Congress will have the opportunity to press forward with their proposed changes to the tax laws. Such changes would likely come into effect in 2022, but there remains the possibility that some could be made retroactive to earlier dates, which would vastly complicate things for clients and advisors alike. There may be only a brief window to take advantage of expiring traditional planning tools.

What does it take to achieve the retirement of your dreams?

That’s the essence of the question we posed to dozens of financial planners. What are the common characteristics of those who have a successful retirement? Did they have a budget? Did they save aggressively and invest prudently? Did they own enough life insurance? Did they focus on minimizing taxes and building after-tax wealth? Did they put in place plans to manage and mitigate all the risks they might face in retirement? Did they craft a well-thought-out estate plan?
“There’s no ‘formula’ for a successful retirement,” said Robert Klein, president and founder of the Retirement Income Center. “Everyone’s situation is different. Having said this, successful retirees share a combination of financial and nonfinancial characteristics that enable them to appreciate and enjoy their retirement.”
Here’s a look at some of those characteristics.

5 tax moves to make in April 2021 (after MLB's Opening Day)

It's April. You know what that means. Major League Baseball is back! Yep, the return of The Boys of Summer takes top billing this month since the Internal Revenue Service pushed the usual April 15 Tax Day to May 17. I'll be spending this Opening Day doing what I do every year when the professional baseball season starts: watching games. I do realize, though, that there are some folks who'll be working today. And some of them will be working on taxes. So before the first pitch is thrown, here are five tax topics to think about this April.

Be sure to claim applicable household utility costs in your home office deduction

If you qualify for the home office deduction, you get to count a portion of home-related expenses that typically aren't deductible. This includes certain residential maintenance and operational costs, such as utilities. Only the business amount: Before you get too, note the phrase from the previous paragraph: count a portion of home-related expenses. You can deduct only the amount of your residence's expenses that applies to your home office.

Be sure to claim applicable household utility costs in your home office deduction

If you qualify for the home office deduction, you get to count a portion of home-related expenses that typically aren't deductible. This includes certain residential maintenance and operational costs, such as utilities. Only the business amount: Before you get too, note the phrase from the previous paragraph: count a portion of home-related expenses. You can deduct only the amount of your residence's expenses that applies to your home office.

The top frauds of 2020

2020 was a tough year. Between the pandemic and the economic crisis, we all had our hands full. And scammers didn’t take any time off either — 2020 was a busy year for fraud. In 2020, the FTC got more than 2.2 million reports about fraud, with people telling us they lost nearly $3.3 billion. Here’s what we heard from you in 2020.

8 reasons to wait to file your 2020 taxes

But there's something to said for those of us who wait. Over the years, I've discovered that writing and filing taxes have something in common. Often, as soon as you're done, you see something you want to change. With taxes, changes are not that easy once you’ve filed. Here are 8 reasons why you might slow your roll when it comes to filing your 2020 tax return.

Sick leave tax credits for self-employed

The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA). Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202.

The new stimulus bill has 6 big tax savings for small businesses

Every dollar saved on federal taxes means more cash in your bank account, and that can mean surviving or failing these days. The good news is that the latest $900 billion anti-virus stimulus bill, signed by then-President Donald Trump in late December, contains a number of tax benefits for small businesses that take the time to take advantage. Here are the six biggest.

7 reasons to file your tax return early

The 2021 filing season won't start until Feb. 12 this year. That's frustrating for the millions of taxpayers who traditionally are early return filers. It's more frustrating for those taxpayers who, because of COVID-19 complications (which also created this year's filing delay), are really counting on their tax refunds to cover expenses. This year's later than usual filing start means it is even more important to get those 1040 forms into the Internal Revenue Service as soon as the agency will take them. If you're still debating about when to file your taxes, here are seven reasons you might want to consider completing your Form 1040 sooner.

Tax statements you need

We got our first tax statement yesterday. It's our mortgage lender's Form 1098 with details on potentially tax-deductible amounts like loan interest and property taxes. This is just one of the documents that millions of taxpayers are awaiting so they can file their returns. In addition to tax-related home transactions, the various documents that are or soon will be on their way include documents detailing income, be it from wages, contract work or retirement accounts; investments; winnings and/or gambling proceeds; and in some cases, health care information.

Tax moves to make in February 2021 that will make taxpayers and their new Valentine, the IRS, happy

Yes, that mention of Uncle Sam's tax collector is not a typo or joke. It's recognition that the IRS has set Feb. 12 as the official start of the 2021 tax filing season. What other reason than wanting to be our Valentine could the tax agency have for choosing the Friday leading into St. Valentine's Weekend as the time when it will begin processing our 2020 returns? Oh, wait. Maybe to give the IRS time to update forms and computer systems due to year-end COVID-19 law changes? In any case, here are tax moves for February.

6 popular homeowner tax breaks

The specific numbers from the NAR report released Jan. 22 show existing home sales totaled 5.64 million in 2020. That's 5.6 percent higher than in 2019 and the highest level since 2006.Concerns about home shopping during COVID-19 didn't deter buyers, who apparently didn't want to miss out on record low mortgage interest rates. And the pandemic might even have helped, as people looked for more desirable places to self-isolate. In addition to achieving what many still view as a big part of the American Dream, owning a personal residence still offers a wide variety of tax breaks. Here are 6 popular home-related tax savings.

4 tax moves to make in January 2021

The Internal Revenue Service's delivery of the second round of COVID-19 relief money shouldn't hamper its handling of 2020 returns, which should officially start later this month. So if the IRS can be ready, so can we. So here are a few tax things to think about and take care of. These four tax suggestions are just a few of the things to think about this first month of this brand-spanking-new New Year. You can find more in the January Tax Moves over in the ol' blog's right column.

Social Security hike effectively lost

One such bauble that's getting some attention right now is a proposal to increase next year's cost of living (COLA) bump for Social Security beneficiaries. Earlier this year, the Social Security Administration announced that older folks getting these monthly retirement checks would see them go up by 1.3 percent. On the heels of that announcement was word that the cost of Medicare's Part B coverage, paid by those program's recipients, would go up 2.69 percent in 2021 That government medical coverage for retirees cost increase effectively eats up the small Social Security COLA hike.

Five Tips to Regain Your Retirement Savings Focus in 2021

In early 2020, 61% of U.S. workers surveyed said that retirement planning makes them feel stressed.1 Investor confidence was continually tested as the year wore on, and it's likely that this percentage rose — perhaps even substantially. If you find yourself among those feeling stressed heading into the new year, these tips may help you focus and enhance your retirement savings strategy in 2021.

Tax difference between home repairs & home improvements

Millions of folks who used to go to offices are now working from home. And they, too, are turning some of their attention to home repairs, maintenance and, where they're fortunate enough to have some disposable income, remodeling. Homeownership means maintenance: My project today focused on backyard landscaping. We have a water feature that is, for me, an aquatic Zen garden. I like to go out and clean debris from the disappearing stream and rearrange the rocks that guide its flow. And it's not always just for fun. The key here is the difference, in the eyes of the IRS, between home improvements and home maintenance.

Ten tax moves for December

One thing is the same as in previous Decembers. We still need to make some tax moves before Jan. 1. Some December tax moves will demand a little homework and financial calculations. Others will require you to dust off your crystal ball and make some political predictions. All these ancillary actions are necessary to determine what affect certain tax moves will have and whether you want to make them at all.

Working in retirement

In 2020, 74% of workers said they expected to work for pay after retiring from their regular jobs, but only 27% of retirees said they had actually done so. This large gap between expectation and reality has been fairly consistent in surveys over the past 20 years, and there is no reason to expect it will change. So it may be unwise to place too much emphasis on income from work in your retirement strategy. Most retirees who worked for pay reported positive reasons for doing so; however, there were negative reasons as well.

Year-end tax moves

If you find you're staying home this year as a health precaution, don't despair. Remember that it's for everyone's good. And there's always Facetime or Zoom if your family is large and really socially distanced. On the tax side, a stay-home holiday means you'll have more time to get started on year-end tax moves. Here are 10 tax matters to consider and, wherever applicable, complete this November.

Five investment tasks to tackle by year-end

Market turbulence in 2020 may have wreaked havoc on your investment goals for the year. It probably also highlighted the importance of periodically reviewing your investment portfolio to determine whether adjustments are needed to keep it on track. Now is a good time to take on these five year-end investment tasks.

Medical matters affected by inflation in 2021

Medical costs are always a concern, even when you have insurance. And with potential new treatments for COVID-19, it's important to know what your medical policy will cover. It's also good to know how, and how much, some tax breaks can help you meet what seems to be ever-increasing health care expenses. Many medically-related tax laws also are adjusted each year for inflation.

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email or call, Elizabeth Jones, at (843) 777-2694.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. You may also contact a member of the Professional Advisory Council. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Legacy Giving section has been developed for McLeod Health Foundation and is owned by Future Focus. Please report any problems to section webmaster.