2021 Child and Dependent Care Credit

Good to Know The Child and Dependent Care Credit (a potentially refundable tax credit for 2021) is to incent employment. Employed taxpayers receive a tax credit if they have dependents who need child care. The credit is available to those taxpayers currently employed and those seeking employment. Restrictions, conditions, and coordination rules apply. Restrictions The…

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Personal Umbrella Liability Insurance Isn’t Only for the Rich

Good to Know Conventional wisdom would have us believe that personal umbrella liability policies are needed only when one’s net worth exceeds $1,000,000. The purpose of this blog is to challenge that potentially dangerous assumption. As background, we live in an amazing country, land of the free because of the brave. Yet the United States…

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Powers of Attorney – Autonomy vs. Protection

Good to Know CFP Board expects CFP® Certificants to understand how to protect a client’s assets and guide health care decisions in the event of incapacity. Let’s make this personal – who would make medical decisions for you if you were temporarily unconscious or suffering from a debilitating disease such as Alzheimer’s? How about financial…

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Specialized Long-Term Care Insurance for Middle-Income Americans

Good to Know Long-term care costs can consume hundreds of thousands of dollars regardless of an individual’s wealth but the risk is often managed differently by wealth demographic. The uber-wealthy may self-insure, the desperately poor may rely on Medicaid, and middle-income Americans may buy LTC insurance. This blog will illustrate a powerful long-term care insurance…

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What You Don’t Know About Social Security Can Hurt You

Good to Know Social Security benefits are key to most Americans’ quality of financial life during retirement. Yet, an alarming number of those approaching retirement do not have a basic understanding of Social Security benefits. Twelve basic questions were posed to 1,5001 pre-retirees to gauge their Social Security knowledge. Take the quick quiz below to…

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Last Minute Tax Deductions for 2020

Good to Know Taxpayers may reduce their 2020 taxable income by tens of thousands of dollars by contributing to tax-deductible IRAs, 401(k)s, and other accounts by May 17, 2021. Traditional Deductible IRA Contributions Taxpayers who are unaware of this opportunity or miss the usual April 15, 2021, deadline may contribute to an IRA for 2020…

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Reprieve from the Warden: Individual Federal Income Tax Return Due Date Extended

Good to Know In mid-March, the IRS announced an extension of time to file individual 2020 income tax returns. The following excerpts were taken directly from IRS press release IR-2021-59, March 17, 2021: “WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals [including…

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IRS Riddle: How Do You Save $435 or More in Tax Penalty With 55 Cents?

Good to Know Alert-As of the date this blog was written (March 16, 2021) pressure was building to extend 2020 tax return due dates in recognition of COVID challenges. However, taxpayers should assume the due date for personal and business income tax returns remains unchanged unless an official IRS pronouncement indicates otherwise. The IRS recognizes…

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IRS Discount “Coupons” – Flexible Spending Arrangements

Good to Know If your doctor emailed a 35% discount coupon to your inbox, would you take the free money?  Your clients that are under-utilizing Flexible Spending Arrangements to pay medical and child-care costs may be throwing away free money. How? Contributions to the Flexible Spending Arrangements discussed herein are not subject to income, Social…

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ALERT – IRS Audit Red Flags

Good to Know The “red flag” expression comes to us courtesy of its first use in 1602 to signal the preparation for war. An IRS audit, while not a declaration of war against a taxpayer, can certainly put an unprepared client in the cross hairs of an unpleasant tax conflict. Before unfurling the red flags,…

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