Taxes

By Paul Morrone CFP®, CPA/PFS, MSA

It’s no surprise that the not-for-profit sector was resistant to some of the tax code changes as many donors may receive little, if any, tax benefit for their generosity in the upcoming years. While deductions for contributions are not generally the only motivation for individuals to bequeath some of their wealth to an organization with good stewardship, it certainly makes giving more attractive from a dollars and cents perspective.

By Paul Morrone CFP®, CPA/PFS, MSA

You’ve inevitably heard someone say that the ‘maximum contribution’ to a 401(k) plan is $18,500 if under 50 and $24,500 if over 50 (for 2018). This is a bit misleading, however, as the maximum total addition to a defined contribution plan is actually $55,000 for the 2018 tax year, of which the above limits apply only to pre-tax salary deferrals. Confused yet? Many times, people don’t even know they have after-tax money in their 401(k) plan until they try to roll out the balance and the representative on the phone tells them that they have after-tax contributions as well. This little ‘surprise’ often leads to the question ‘where did this money come from?’

By Paul Morrone CFP®, CPA/PFS, MSA

For many Americans taxes are a necessary evil. Something to ‘get done’ and forget about for 12 months. However, the savvy taxpayer knows that filing your tax return is equally as important as understanding what it is telling you. With the 2017 filing season now in the rear-view mirror, it’s best to digest this information while it’s still fresh and while there are still 7 months left in 2018 to make any necessary changes.  Spending some time to review your tax return will provide you with insight into the financial health of your household that is unavailable through any other means. There is a reason that almost all lenders ask for copies of your tax returns as one of the first items in consideration of your creditworthiness and it is because of the treasure trove of information it beholds. While it would take volumes to go through every line of the 1040 and its sub-schedules, right now we’ll keep it simple and focus on one number everyone should understand.

By Paul Morrone CFP®, CPA, MSA

The W-2 is one of many tax documents that working individuals receive, and in many cases, they are widely misunderstood. Your W-2 contains information not just about your earnings and taxes, but your retirement plans and employee benefits as well. Understanding the common numbers displayed on the form can give you a better understanding of the benefits your receiving as well as what your total compensation looks like.

By Paul Morrone CFP®, CPA, MSA

The Tax Cuts and Jobs Act may be the most hotly debated piece of legislation that will ever pass over President Trump's desk. The final text of the bill has reached nearly 1,100 pages in length and includes provisions that will affect every taxpayer, no matter how large or small. However, what many fail to realize is that the foundation of our "new" tax code is still the antiquated, complicated and widely misunderstood Internal Revenue Code of 1986.

By Paul Morrone, CFP ®, CPA, MSA

Your tax preparer probably isn’t a bad guy or gal. You may like them some years and hate them others, but that is likely predicated on whether you get a refund or have a balance due.