Newsletter

APRIL 2024 E-NEWSLETTER

FEATURED NEWS

Tax Day is Here! Last-minute Details and Tips

With the individual tax-filing deadline on Monday, April 15th, now is the time to complete all filing arrangements and payments....

 

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MORE TAX & FINANCIAL NEWS YOU CAN USE

Annual Tax Quiz - Is It Taxable?

The IRS seems to always have a surprise up its sleeve for the unsuspecting taxpayer. Here's a fun True or False quiz to test your knowledge of what's taxable...

 

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Claiming Deductions For Volunteer Work

Volunteering helps others and gives you a feeling of satisfaction. And it may also give you a tax deduction. To qualify for a deduction, your expenses must directly relate to the charity where you volunteer. Additionally, you must not have been reimbursed for those volunteering expenses and must itemize deductions...

 

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What You Need To Know About IRA Rollovers

Are you thinking of an IRA rollover? Getting these three rules right is critical if you want to avoid a big tax bill...

 

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Password Madness: Tips to Keep Your Growing List Under Control

When it comes to keeping your online accounts safe, strong passwords that nobody can guess are an essential tool. Many struggle, though, with password fatigue because you need to have a password for…well, everything. And then you need to change these passwords every several months!...

 

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RECENT E-NEWSLETTERS

MARCH 2024 E-NEWSLETTER

FEBRUARY 2024 E-NEWSLETTER

JANUARY 2024 E-NEWSLETTER

 

APRIL 2024 Q & A

Q: I recently received a financial windfall and wondered if I should invest it or use the extra money to pay down debt.

A: It depends. First, pay any income taxes that may be due on the windfall. Then, consider paying off high-interest credit card debt before any lower-interest loans.

Determine whether it makes more sense to pay off a low interest mortgage or home equity loan where you can deduct the interest or make more by investing to get higher returns.

If investing, consider adding to your emergency or retirement fund.

 

SHORT BITS

Is Alimony Taxable?

For federal income tax, the answer is “Yes” and “No,” depending on your divorce agreement date or last modification.

THE RULES
Generally, for agreements entered before January 1, 2019, alimony (separate maintenance payments) is taxed to the recipient spouse and deductible by the payor. The payor doesn’t have to itemize deductions to claim alimony paid. However, for agreements entered in 2019 and later, alimony is neither taxed to the recipient nor deductible by the payor.

AVOIDING TAXATION
If your divorce was before 2019, you can avoid future tax on alimony you receive by having your legal professional amend your agreement. The amendment must explicitly spell out that the repeal of the deduction for alimony payments now applies to payments under your divorce agreement.

Considering Unretiring?

1 in 6 retirees are considering a return to work and more than half of them want remote positions, according to a 2023 Paychex survey. Financial reasons were a major factor in the majority of responses.

 

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