The GOLD Company does not sell any products
and is compensated ONLY from the company's clients. No
commissions are taken on any products.
I sincerely enjoy meeting people and
getting to know them. The Gold Company strives to return calls promptly and takes a genuine interest in your needs. I work hard to personalize a
plan that best fits your needs, budget and future.
The Money Prof
Friday, February 28 2014
Here we go again! Income taxes 2013Are you working on your taxes yet? If not, don't worry you have until April 15th to finish them. Does everyone have to file their Federal 1040s and State of Maine tax returns? If you are seeking a refund from withholding taxes during the year, you will have to file. If your income is above the sum of your standard deduction ($6,100 per individual or $7,600 if over age 65) and the personal exemption of $3,900 per individual, then one must file. I have been doing my own taxes for many years. Here are some tips that might help you:
- Use folders to maintain all tax records
- If you derive "miscellaneous income" and receive 1099-MISC forms, you might have to wait to receive them. All institutions must mail out their forms by February 28th.
- Use tax software (Turbo tax, Kiplingers, etc.) - they are user friendly and you can file on line and get your refund faster. Having refund checks directly deposited in your checking account instead of mailing it to you, can cut down on identity theft.
- If you own real estate (Schedule E) or own a business (Schedule C) make sure you list all your expenses from checkbooks, online banking, credit card statements, and expense receipts.
- If you have a mortgage and pay property taxes, it may pay for you to itemize your deductions (Schedule A) instead of taking the standard deduction(s).
- We want to "avoid" taxes by making sure we take all the allowable deductions.
- Leave yourself enough time to prepare your taxes in case you have to obtain information required for your return.
- Understand what your marginal tax rate is. That is the rate in which your last dollar of income is taxed. It is also the rate in which you save on expenses (write-offs). You can get the federal income tax rate schedule online. Here is the Federal tax rate for married taxpayers:
- 10% on taxable income from $0 to $17,850, plus
- 15% on taxable income over $17,850 to $72,500, plus
- 25% on taxable income over $72,500 to $146,400, plus
- 28% on taxable income over $146,400 to $223,050, plus
- 33% on taxable income over $223,050 to $398,350, plus
- 35% on taxable income over $398,350 to $450,000, plus
- 39.6% on taxable income over $450,000.
All taxpayers begin at the lowest 10% rate on the first $17,850 of income, then the rate "progresses" as your income rises. So, couples that have taxable income between $72,500 and $146,400 would pay 25% on that portion of income. These couples that can find additional write-offs would reduce their taxable income and save 25% in taxes on that write-off.
- Some taxpayers have more complex tax situations with multiple Schedules, or others that do not want to do their own taxes. My advice is get referrals on professional tax preparers and advisers and shop around for pricing.
The GOLD COMPANY will help you achieve financial well being.
Offering the following services:
- Investment Portfolio Assessment
- Portfolio Development
- Securities Portfolio Management
- Retirement Planning
- Insurance/Risk Management Review
- College Planning
- Real Estate
- Estate Planning
- Business Analysis