Latest / Money In Motion with Klaas Financial / Tax Hacks for the Mid-Year Stretch

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Tax Hacks for the Mid-Year Stretch · Money In Motion with Klaas Financial

• 0:00
  Speaker 1: Our phone lines are open for you right now. If
• 0:02
  Speaker 1: you've got questions for our retirement planning professionals from Class Financial,
• 0:05
  Speaker 1: I gotta pick a focus rank telephone overhead station six
• 0:08
  Speaker 1: SO eight three two one thirteen ten. That's three two
• 0:11
  Speaker 1: one thirteen ten. You can learn more about Class Financial
• 0:14
  Speaker 1: on their website class financial dot com. That's k l
• 0:17
  Speaker 1: Aasfinancial dot com and they're telephone number six so eight
• 0:21
  Speaker 1: four four two five six three seven. No charge for
• 0:24
  Speaker 1: the financial gets no appointment TECHLSS financial. It will be
• 0:26
  Speaker 1: complimentary to you again that number six oh eight four
• 0:29
  Speaker 1: four two five six three seven and joining us this
• 0:31
  Speaker 1: week Malia Quavis and Eric Schwartz of Class Financial. Malia,
• 0:35
  Speaker 1: how are you doing this morning?
• 0:37
  Speaker 2: I'm doing really good. I just heard you do a
• 0:39
  Speaker 2: commercial and you actually spoke some Spanish on there. Wow,
• 0:44
  Speaker 2: I'm so impressed.
• 0:45
  Speaker 1: When I was a fun story, So when I was
• 0:49
  Speaker 1: in elementary school, the school I attended for just kindergarten
• 0:55
  Speaker 1: was bilingual, and I learned quite a bit of Spanish,
• 0:58
  Speaker 1: and then I've sent forgotten everything.
• 1:02
  Speaker 2: Well, sounds like it's coming back to fruition well a
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  Speaker 2: little bit.
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  Speaker 1: Eric, how you doing this morning?
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  Speaker 3: You are Blastpanol, probably about as much as you shine.
• 1:15
  Speaker 3: I am doing great, and I think we can forgive
• 1:17
  Speaker 3: you for forgetting the Spanish from when you were five.
• 1:20
  Speaker 1: Yes, some things I still remember, though all I know
• 1:24
  Speaker 1: how to count to twelve thanks to Sessme Street and
• 1:26
  Speaker 1: some other things. Sorry, yeah, you entertain a little from
• 1:29
  Speaker 1: those days. We've got a fun and informative show ahead
• 1:32
  Speaker 1: as always. Don't forget, by the way, as we chat
• 1:35
  Speaker 1: with Malia and Eric this week, if you miss any
• 1:37
  Speaker 1: part of the program, you can always listen back right
• 1:39
  Speaker 1: at class financial dot com you can listen to the
• 1:41
  Speaker 1: podcast of course, sign up for the weekly market Paulson,
• 1:44
  Speaker 1: the newsletter, and so much more. Again the website class
• 1:47
  Speaker 1: financial dot com. That's k l a a s Financial
• 1:50
  Speaker 1: dot com office here in Madison. The telephone number six
• 1:52
  Speaker 1: O eight four four two five six three seven. No
• 1:55
  Speaker 1: charge for the initial get to know the appointment atlass Financial.
• 1:58
  Speaker 1: It will be complimentary to you. This week, we're going
• 2:01
  Speaker 1: to be looking ahead, kind of at that little past
• 2:03
  Speaker 1: that halfway point, looking ahead with a mid year check
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  Speaker 1: up and when it comes to things like planning for
• 2:09
  Speaker 1: next year and your finances and of course taxes and
• 2:12
  Speaker 1: our things we're going to get into the details with
• 2:13
  Speaker 1: Eric and Malia in just a moment. Another really cool
• 2:16
  Speaker 1: feature of the program, aside from taking your calls and
• 2:19
  Speaker 1: some other great information, is the Closs Quiz Question the Week.
• 2:22
  Speaker 1: This week, you're gonna have a chance to win a
• 2:23
  Speaker 1: twenty five dollars gift card to Cabella's. Little tip listen
• 2:26
  Speaker 1: closer to the show. Oftentimes, both the question and answer
• 2:30
  Speaker 1: to the class quiz questionally come up during the program.
• 2:33
  Speaker 1: We'll tell you again a little later in the show
• 2:35
  Speaker 1: how you can win that twenty five dollars gift card
• 2:36
  Speaker 1: to Cabella's. From our friends at Class Financial and Malia.
• 2:40
  Speaker 1: Before we started this week's topic, let's actually take a
• 2:42
  Speaker 1: look back at last week's show and get the question
• 2:45
  Speaker 1: and answer to the class Quiz question the week as well.
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  Speaker 2: Yeah, so last week one of our favorite topics I
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  Speaker 2: think we like to repeat throughout the year. It was
• 2:54
  Speaker 2: regarding debt, and basically that's something we don't want to
• 2:57
  Speaker 2: be carrying into retirement. So if you kind of want
• 3:01
  Speaker 2: to see where you're at with things, listen to last
• 3:03
  Speaker 2: week's show and get a handle on how debt balances
• 3:07
  Speaker 2: can really affect your future retirement. Income. But our question
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  Speaker 2: last week was true or false. According to the Federal
• 3:13
  Speaker 2: Reserve Bank of New York, household debt balances in the
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  Speaker 2: United States set a record high of seventeen point six
• 3:20
  Speaker 2: ' nine trillion during the first quarter of twenty twenty four.
• 3:24
  Speaker 2: True or false, The answer was true. Congratulations to our
• 3:28
  Speaker 2: winner who was first to the phones last week, Leo
• 3:32
  Speaker 2: of WannaKey. Congratulations to him. Thanks everyone for listening. Listen
• 3:36
  Speaker 2: carefully today.
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  Speaker 1: Good good work there, Leo, and you two can be
• 3:39
  Speaker 1: like Leo, pay close attention to the program. You will
• 3:42
  Speaker 1: be rewarded in a number of ways. As mentioned, we're
• 3:45
  Speaker 1: going to be talking this week about getting ready for
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  Speaker 1: next year. And I know it's you know, we still
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  Speaker 1: got a couple of months till next tax season comes
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  Speaker 1: upon us. But I got a guess that it's really
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  Speaker 1: a good time to get things in line for next year.
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  Speaker 1: And what steps should we should we be taking right now?
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  Speaker 3: Eric, Yeah, Sean. We know here at Class Financial we
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  Speaker 3: talk to people about their finances all the time, and
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  Speaker 3: we know there is nothing they love more than taxes,
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  Speaker 3: and so we thought let's talk about it a little
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  Speaker 3: bit more. But seriously, the mid year tax check up.
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  Speaker 3: The idea here is to make tax time less stressful.
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  Speaker 3: So we're going to be talking about today some strategies
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  Speaker 3: and some things to think about ahead of time. But
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  Speaker 3: just a quick disclaimer, we are not accountants here at
• 4:30
  Speaker 3: Class Financial, so you should seek out a tax professional
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  Speaker 3: to answer your specific questions. But we do work with
• 4:38
  Speaker 3: accountants and clients on a regular basis, and we've definitely
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  Speaker 3: accumulated some knowledge to tell about our clients and hopefully
• 4:45
  Speaker 3: some of the listeners today. But let's start first with
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  Speaker 3: just a few kind of data points. So the tax
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  Speaker 3: day for twenty twenty four taxes is April fifteenth, twenty
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  Speaker 3: twenty five, so we're still away, still a ways away yet,
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  Speaker 3: we don't have to get too stressed. But it may
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  Speaker 3: actually surprise some listeners to know that there are still
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  Speaker 3: some tax returns from twenty twenty three that have not
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  Speaker 3: yet been filed. So people have extensions or special situations,
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  Speaker 3: so we're still waiting on some. But we have actually
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  Speaker 3: seen one hundred and forty four million tax returns filed.
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  Speaker 3: Percent of those were done via e file, and of
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  Speaker 3: those returns, tax professionals prepared about fifty three percent of them. Okay,
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  Speaker 3: so about about half and half because we're asked all
• 5:34
  Speaker 3: the time by clients do I need a tax prepared?
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  Speaker 3: Do I need a CPA? And the answer as well,
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  Speaker 3: about half of people do and half of people don't.
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  Speaker 3: But we know it's just an additional expense, and people
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  Speaker 3: don't often, you know, want to have to be paying
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  Speaker 3: for that, or maybe they think their taxes are simple,
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  Speaker 3: they don't need to they don't need the extra help.
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  Speaker 3: These may be true, but we're going to talk about
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  Speaker 3: some reasons today why you may actually want to look
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  Speaker 3: at at high airing a tax professional talk. We're trying
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  Speaker 3: to take the stress out of out of tax time.
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  Speaker 1: Nothing better than less stress, especially when it comes to taxes.
• 6:07
  Speaker 1: Talking this morning with Eric Schwartz and Malia Quavis. They
• 6:10
  Speaker 1: are our retirement planning professionals from Class Financial. We have
• 6:13
  Speaker 1: the phone lines open for you if you've got a question.
• 6:15
  Speaker 1: Love to have you join us this week. All I
• 6:16
  Speaker 1: got to do is dial in six oh eight three
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  Speaker 1: two one thirteen ten. That's six soh eight three two
• 6:21
  Speaker 1: one thirteen ten will get you on the air with
• 6:23
  Speaker 1: Malia and Eric. Don't forget as well. You can learn
• 6:25
  Speaker 1: more about Class Financial on their website. Class financial dot Com.
• 6:29
  Speaker 1: That's k l aas Financial dot com and they're telephone
• 6:32
  Speaker 1: number six O eight four four two five six three seven.
• 6:35
  Speaker 1: So Eric, obviously folks wonder about this, should they be
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  Speaker 1: using a tax preparer or a CPA, or or doing
• 6:42
  Speaker 1: it themselves. What do we need to know there?
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  Speaker 3: Yeah, let's let's talk about why you might want to
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  Speaker 3: to use a tax prepair. So there's there are a
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  Speaker 3: lot of reasons, and I know there's a lot of
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  Speaker 3: different programs out there and on that you can use
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  Speaker 3: to kind of make doing it yourself easier. But some
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  Speaker 3: of the reason you may want to actually work with
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  Speaker 3: an individual on this professional tax prepairers. They are paid
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  Speaker 3: to keep up with tax code changes, and I think
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  Speaker 3: we can all agree that just about every week we're
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  Speaker 3: seeing a proposal for a new change to something, and
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  Speaker 3: it can get really complicated and it's hard to recognize
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  Speaker 3: even what deductions or credits where we are eligible for.
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  Speaker 3: So a tax prepare is someone who is doing this
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  Speaker 3: on a daily basis, and it's not wondering about, you know,
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  Speaker 3: what the changes are for twenty twenty four. So from
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  Speaker 3: that perspective, we view it as it can actually save
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  Speaker 3: you some money. Right, if your tax prepaer finds even
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  Speaker 3: one deduction or tax credit that you might have missed,
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  Speaker 3: it can easily exceed the costs that you actually pay
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  Speaker 3: that person. Right, that's the whole industry is based on.
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  Speaker 3: In addition to that, it saves you time. So the
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  Speaker 3: IRS report said it can take nearly seven hours to
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  Speaker 3: complete the average tax return if you're a business owner,
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  Speaker 3: even more than that, closer to twenty hours. And our
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  Speaker 3: time is worth something, So we need to make sure
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  Speaker 3: that we're thinking about how much time we're putting into this,
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  Speaker 3: how much stress we're causing ourselves. And beyond that, tax
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  Speaker 3: professionals they can answer your questions and resolve issues quickly.
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  Speaker 3: So I think we've all had questions about our taxes
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  Speaker 3: from time to time, and I don't know if anyone's
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  Speaker 3: ever tried to call the IRS and get a quick
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  Speaker 3: question answered. But it's not a quick process by any means,
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  Speaker 3: and in most cases, an accountant or a tax professional
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  Speaker 3: can answer that question pretty quickly. And really, what a
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  Speaker 3: lot of this is that we're talking about today is
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  Speaker 3: just a general peace of mind knowing that a professional
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  Speaker 3: is handling this and you don't have to be worrying
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  Speaker 3: about Am I doing this right? Am I doing this
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  Speaker 3: in the most advantageous way. It reduces the risk of
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  Speaker 3: making a mistake. So if you miss a deduction or
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  Speaker 3: you trigger an audit because you don't prepare something correctly,
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  Speaker 3: those all of those are things that you can that
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  Speaker 3: you can hopefully put by the wayside by working with
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  Speaker 3: a tax professional.
• 9:06
  Speaker 1: Talking and oh good, sorry, no, I'm gonna mention you
• 9:09
  Speaker 1: talking this morning with Eric Schwartz and Malia Quavis, our
• 9:11
  Speaker 1: retirement planning professionals from Class Financial. If you've got a
• 9:14
  Speaker 1: question for Eric and Malia, we'd love to have you
• 9:16
  Speaker 1: join us. So I got to do is dial in
• 9:17
  Speaker 1: six eight three two one thirteen ten. That's three two
• 9:20
  Speaker 1: one thirteen ten. Don't forget Class Financial. Their telephone number
• 9:23
  Speaker 1: for the office right here in Madison. Six oh eight
• 9:25
  Speaker 1: four four two five six three seven. No charge for
• 9:28
  Speaker 1: that initial get to know your appointment tech Coss Financial.
• 9:30
  Speaker 1: It will be complimentary to you again their number six
• 9:33
  Speaker 1: oh eight four four two five six three seven. So Eric,
• 9:36
  Speaker 1: you're talking about some of the some of the benefits
• 9:39
  Speaker 1: here to working with a professional. What are some other
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  Speaker 1: things we need to need to be thinking about? Some
• 9:42
  Speaker 1: of the other benefits.
• 9:43
  Speaker 3: There, yeah, in the in the spirit of our being
• 9:46
  Speaker 3: proactive and planning ahead. Here, one of the biggest benefits
• 9:51
  Speaker 3: that are I would I would say maybe asn't a
• 9:52
  Speaker 3: direct benefit or as obvious to people, is the idea
• 9:55
  Speaker 3: of when you work with a tax professional, you can
• 9:57
  Speaker 3: actually do tax planning. So you're not just visiting your
• 10:00
  Speaker 3: taxes once a year to say, Okay, what happened this year,
• 10:03
  Speaker 3: what do I owe? What do I you know? What
• 10:05
  Speaker 3: do I get to write off? If you're actually doing
• 10:07
  Speaker 3: tax planning throughout the year, you can make decisions along
• 10:10
  Speaker 3: the way to help yourself out at tax time, and
• 10:14
  Speaker 3: working with the tax professional allows you to be to
• 10:16
  Speaker 3: be more proactive and to not just show up to
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  Speaker 3: your get your return filed and realize that you got
• 10:22
  Speaker 3: to pay in a whole bunch. And they can also
• 10:25
  Speaker 3: look at your previous returns, so if you've prepared your
• 10:28
  Speaker 3: taxes on your own in the past, you can actually
• 10:30
  Speaker 3: bring those in. The tax professional can look at them
• 10:33
  Speaker 3: see if you missed anything, and if so, they can
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  Speaker 3: amend them. And all of this is kind of in
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  Speaker 3: service of reducing your risk of an audit, so taxes
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  Speaker 3: can be stressful. It can be not a fun process,
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  Speaker 3: and an IRS audit makes it makes it all the worse.
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  Speaker 3: So the tax professional can help you kind of reduce
• 10:53
  Speaker 3: that risk overall and just really take the stress out
• 10:57
  Speaker 3: of out of tax season. But if you do decide
• 11:00
  Speaker 3: that you want to engage with the tax prepair, we strongly,
• 11:03
  Speaker 3: strongly encourage you to do so before tax season begins.
• 11:07
  Speaker 3: So often people come to us and you know, March
• 11:10
  Speaker 3: and say, hey, I need an accountant. Can you refer
• 11:13
  Speaker 3: me to someone? And we're happy to refer people out,
• 11:15
  Speaker 3: But at that point, many tax repairs are already full
• 11:18
  Speaker 3: for the season. They're in the midst of their busy
• 11:21
  Speaker 3: season and the idea of taking on new clients is
• 11:23
  Speaker 3: really really difficult, and if they can, it makes it
• 11:26
  Speaker 3: really Even if they can, it makes it really difficult
• 11:29
  Speaker 3: to build a relationship. So reach out early, be proactive
• 11:32
  Speaker 3: and make things a lot easier on yourself.
• 11:34
  Speaker 1: Good day to reach out to day and beat that
• 11:37
  Speaker 1: and beat that chaos. And yeah, you just think about
• 11:40
  Speaker 1: the poor tax prepairers. I mean, they've got that those
• 11:42
  Speaker 1: that time of year is just chaotic for them and
• 11:45
  Speaker 1: a really good time to set that conversation and start
• 11:47
  Speaker 1: that conversation. Speaking of starting a conversation, if you've got
• 11:50
  Speaker 1: a question, love to have you on the air this morning.
• 11:52
  Speaker 1: I'll give you is dial in six eight three two one.
• 11:54
  Speaker 1: Thirteen ten, we got you on the air with Malia
• 11:56
  Speaker 1: Quavis and Eric Schwartz, our retirement planning professionals from Class Finance,
• 12:00
  Speaker 1: their website class financial dot com. That's k l aasfinancial
• 12:04
  Speaker 1: dot com. A top number for the office right here
• 12:06
  Speaker 1: in Madison. Six oh eight four four two five six
• 12:09
  Speaker 1: three seven. No charge for financial get to know you
• 12:11
  Speaker 1: appoyment at COSS Financial. It will be complementary to you
• 12:14
  Speaker 1: again their number six oh eight four four two five
• 12:17
  Speaker 1: six three seven. Well, look forward to twenty twenty or four.
• 12:19
  Speaker 1: We're gonna look at twenty twenty four taxes and some
• 12:22
  Speaker 1: of the things to keep in mind and also being
• 12:24
  Speaker 1: ready for next year. We'll get some details from Malia.
• 12:27
  Speaker 1: We will do that next as Money in Motion with
• 12:29
  Speaker 1: Coss Financial continues here on thirteen ten. Wib A talking
• 12:36
  Speaker 1: with our retirement planning professionals from Class Financial, Malia Quavis
• 12:40
  Speaker 1: and Eric Schwartz, their website Colssfinancial dot com that's k
• 12:44
  Speaker 1: l aas Financial dot Com. Talk about all the great
• 12:47
  Speaker 1: features to the website I haven't mentioned yet the weekly
• 12:50
  Speaker 1: Market Pulse newsletter. It's a great weekly email you receive.
• 12:53
  Speaker 1: It's got a little snapshot of what's been going on
• 12:55
  Speaker 1: in the markets. Also linked to the most recent podcast
• 12:58
  Speaker 1: that available to you for free at cossfinancial dot com.
• 13:01
  Speaker 1: Just scroll down towards the bottom where you'll see that
• 13:03
  Speaker 1: envelope that says stay current. From there you can do
• 13:05
  Speaker 1: like I did, you can subscribe again. That's a nice
• 13:08
  Speaker 1: little feature on the website CLSs financial dot com. That's
• 13:11
  Speaker 1: k l aas Financial dot com now thes tephon number
• 13:14
  Speaker 1: six soh eight four four two five six three seven.
• 13:17
  Speaker 1: No charge for that initial gets to know your appointment
• 13:19
  Speaker 1: at c loss Financial. It will be complimentary to you again.
• 13:22
  Speaker 1: They're number six oh eight four four two five six
• 13:25
  Speaker 1: three seven talking taxes this week, and of course there
• 13:27
  Speaker 1: are always things to be thinking about when it comes
• 13:30
  Speaker 1: to your twenty twenty four taxes? Are there some tips
• 13:32
  Speaker 1: you might have for folks also to get prepared for
• 13:35
  Speaker 1: next year and waste to simplify all of this malia.
• 13:38
  Speaker 2: All about because inherently we're planners, and so some people
• 13:42
  Speaker 2: are listening today, they're going, we just finished tax season,
• 13:45
  Speaker 2: why are we talking about taxes? And again, Eric and
• 13:47
  Speaker 2: I would say exactly to his point. If in fact,
• 13:52
  Speaker 2: you know you survived this tax season, but you want
• 13:54
  Speaker 2: to make things less stressful for next tax season, perhaps
• 13:57
  Speaker 2: engaging a tax professional, please please listen to what he said,
• 14:01
  Speaker 2: engaging them before the next tax season would be the
• 14:04
  Speaker 2: smartest thing you do, if in fact you need that,
• 14:06
  Speaker 2: So keep that in mind. That will definitely simplify your life.
• 14:10
  Speaker 2: But this is a good point. You know, we are
• 14:13
  Speaker 2: past the end of June and end of August. I'm
• 14:16
  Speaker 2: the end of July, and here we are in August,
• 14:19
  Speaker 2: and we're like, who we want everyone to stand back,
• 14:22
  Speaker 2: check on where you stand today on your four oh
• 14:25
  Speaker 2: one K or four h three B or other employer
• 14:28
  Speaker 2: retirement plan contributions. So it's a great time to evaluate
• 14:33
  Speaker 2: how much more you could be contributing for your future retirement.
• 14:38
  Speaker 2: So you're kind of like donating to yourself right, contributing
• 14:41
  Speaker 2: on your behalf for your future retirement. So we would say,
• 14:45
  Speaker 2: you know, take a look at did you get a
• 14:47
  Speaker 2: raise in that first quarter or second quarter perhaps with
• 14:50
  Speaker 2: your company, did you get a bonus? And how could
• 14:53
  Speaker 2: you go ahead and get that working for you, making
• 14:56
  Speaker 2: sure that you've maxed out your contributions for twenty twenty four. Also,
• 15:03
  Speaker 2: do you have an HSA that could use additional funding.
• 15:06
  Speaker 2: So it's a great point in time as of today
• 15:08
  Speaker 2: to say where do I stand. So we want to
• 15:12
  Speaker 2: remind you the numbers today. So aunt the total amounts
• 15:17
  Speaker 2: you could put away in calendar year twenty twenty four,
• 15:21
  Speaker 2: So that would be twenty three thousand into those retirement plans,
• 15:26
  Speaker 2: your employer retirement plans if you are under the age
• 15:30
  Speaker 2: of fifty. If you are over the age of fifty,
• 15:34
  Speaker 2: we get to have what's called a catchup amount, which
• 15:37
  Speaker 2: is seventy five hundred dollars. So the total that you
• 15:40
  Speaker 2: can donate to yourself contribute to yourself is thirty thousand,
• 15:46
  Speaker 2: five hundred for calendar year twenty twenty four. Now remember
• 15:52
  Speaker 2: you can't wait till December thirty first or after December
• 15:56
  Speaker 2: thirty first to have this come through your payroll. Deduction
• 16:00
  Speaker 2: has to be in the calendar year. I get that question,
• 16:03
  Speaker 2: believe it or not. First week in January. People call
• 16:06
  Speaker 2: me and say, you know, I didn't I didn't get
• 16:08
  Speaker 2: it all in for last year. Can can I still
• 16:11
  Speaker 2: do that through my payroll deduction. It's like, no, that
• 16:15
  Speaker 2: is too late. It has to come through within your
• 16:18
  Speaker 2: calendar year. So make sure that you're If you're able,
• 16:22
  Speaker 2: of course, we have to live. But beyond that, if
• 16:26
  Speaker 2: you're able to contribute to and max out your employer plan,
• 16:31
  Speaker 2: please do so. Make sure you're on schedule. Also consider
• 16:35
  Speaker 2: contributing to your traditional or wroth IRA. If you don't
• 16:38
  Speaker 2: have an employer plan before you file, you have to.
• 16:42
  Speaker 2: You do have in this case up to April fifteenth
• 16:45
  Speaker 2: of the next year to contribute, so you know, forget
• 16:50
  Speaker 2: what I just said about December thirty first deadline. You
• 16:52
  Speaker 2: have up until April fifteenth. So this coming year you
• 16:56
  Speaker 2: have up to seven thousand dollars per person for calendar
• 16:59
  Speaker 2: year twenty twenty four if you're under fifty with earned
• 17:03
  Speaker 2: income eight thousand dollars. If you're over fifty again, they
• 17:07
  Speaker 2: give you that ketchup of another thousand dollars and you
• 17:11
  Speaker 2: have to have enough earned income to do that. So
• 17:13
  Speaker 2: you have to have made at least that amount to
• 17:15
  Speaker 2: be able to contribute up to that amount, and you
• 17:17
  Speaker 2: also should be looking at non working spouses if in
• 17:20
  Speaker 2: fact you can contribute on their behalf. If you have
• 17:25
  Speaker 2: a high deductible health plan, you have an HSA, a
• 17:27
  Speaker 2: health savings account. In twenty twenty four, you can put
• 17:31
  Speaker 2: away four thousand, one hundred and fifty dollars if you're
• 17:33
  Speaker 2: an individual, up to eighty three hundred dollars for family coverage,
• 17:38
  Speaker 2: and another ketchup of an additional thousand if you are
• 17:42
  Speaker 2: over fifty five, so a total ninety three hundred. That's
• 17:46
  Speaker 2: really really important because those are dollars you can put
• 17:49
  Speaker 2: away and not have to pay taxes on as long
• 17:52
  Speaker 2: as they eventually come out for health issue health payments.
• 17:57
  Speaker 2: And Eric and I can sit down any day of
• 18:00
  Speaker 2: the week and tell you those kinds of accounts get used.
• 18:04
  Speaker 2: People need to be having those savings accounts if they're available,
• 18:08
  Speaker 2: because those healthcare bills are always coming their way, So
• 18:14
  Speaker 2: keep that in mind. And then finally we want to
• 18:16
  Speaker 2: talk about the standard deduction. So standard deduction for twenty
• 18:19
  Speaker 2: twenty four has increased. It's going to be fourteen thousand,
• 18:23
  Speaker 2: six hundred for single filers up to twenty nine two
• 18:27
  Speaker 2: hundred for married couples or filing jointly. So again we
• 18:31
  Speaker 2: see fewer and fewer people itemizing their taxes due to
• 18:35
  Speaker 2: the large standard deduction, But just have that in mind
• 18:37
  Speaker 2: as you're looking at next year.
• 18:39
  Speaker 1: Talking this morning with Malia Quavis and Eric Schwartz, they
• 18:42
  Speaker 1: are our retirement planning professionals from Class Financial. The website
• 18:44
  Speaker 1: classes financial dot com. That's Klaas Financial dot com. Great
• 18:48
  Speaker 1: website resource. Not only can you get to know the
• 18:50
  Speaker 1: team at Class financially, you can learn about their separate divisions.
• 18:53
  Speaker 1: Listen back to the podcast Malia mentioned hsa is and
• 18:56
  Speaker 1: I know we've covered those a bit more in depth
• 18:59
  Speaker 1: in previous programs. They're really it's a really interesting thing
• 19:02
  Speaker 1: and we'll definitely recommend you give a listen to those
• 19:05
  Speaker 1: podcasts again that at available to you at clasfinancial dot com.
• 19:08
  Speaker 1: Our TOEP number six so eight four four two, five,
• 19:11
  Speaker 1: six three seven And Malia, I know, I know planning
• 19:14
  Speaker 1: and preparation is very important to you. And also simplifying
• 19:18
  Speaker 1: things really makes it makes it easier to be prepared
• 19:21
  Speaker 1: and ready, isn't.
• 19:22
  Speaker 2: It doesn't it? Yeah? And I think again, as people
• 19:26
  Speaker 2: are just putting away their twenty twenty three taxes, this
• 19:29
  Speaker 2: is the very best time to start. Having made a
• 19:33
  Speaker 2: file for twenty twenty four, I've got charitable contributions, I've
• 19:37
  Speaker 2: got you know, health expenses, whatever that might be. We
• 19:41
  Speaker 2: want to make sure we're keeping track of that now.
• 19:43
  Speaker 2: So go ahead and make an electronic folder for twenty
• 19:46
  Speaker 2: twenty four, make a physical folder for twenty twenty four,
• 19:49
  Speaker 2: whichever makes sense for you. Put that right next to
• 19:51
  Speaker 2: your twenty twenty three taxes. And so we would also say,
• 19:56
  Speaker 2: you know, we like to remind people ahead of time
• 19:59
  Speaker 2: and write you four again timing reminders as to when
• 20:03
  Speaker 2: you will see the documents next year. So you'll forget it.
• 20:06
  Speaker 2: We'll remind you again here later this year. But you know,
• 20:09
  Speaker 2: beginning at the end of January next year, you will
• 20:13
  Speaker 2: start seeing your statements come in and those will be
• 20:17
  Speaker 2: W two's and ten ninety nine's and normally, you know
• 20:22
  Speaker 2: all your pre retirement accounts, your iras, those are, you're
• 20:26
  Speaker 2: seeing those by the end of January, but many of
• 20:29
  Speaker 2: those statements do flow into February and March, depending on
• 20:33
  Speaker 2: the type of investments you have, And we always have
• 20:36
  Speaker 2: people calling us the first week in January saying where
• 20:38
  Speaker 2: are my statements? So it does take a while for
• 20:41
  Speaker 2: those to be documented, sent out to you and verified.
• 20:46
  Speaker 2: So We always tell people, I know you want to
• 20:48
  Speaker 2: file your taxes, you're so excited, but hold back because
• 20:51
  Speaker 2: if there's some changes, you're just going to have to refile.
• 20:54
  Speaker 2: So for yourself, you always want to make a list
• 20:57
  Speaker 2: of what documents you typically need to prepare your taxes,
• 21:00
  Speaker 2: especially if you're going to go working with a tax
• 21:03
  Speaker 2: professional to get organized, which what were your investments this
• 21:07
  Speaker 2: year as compared to last year and so forth, and
• 21:11
  Speaker 2: special things to remember if you received or in twenty
• 21:15
  Speaker 2: twenty four, for sure, if you receive unemployment benefits, remember
• 21:19
  Speaker 2: those are taxable income. Sometimes people just blank on that
• 21:23
  Speaker 2: and they think that doesn't count. It It does count. Also,
• 21:27
  Speaker 2: the Secure Act allows owners of traditional iras and roth
• 21:32
  Speaker 2: iras to keep putting money into their accounts past age
• 21:36
  Speaker 2: seventy and a half, so that started in twenty twenty.
• 21:39
  Speaker 2: So we talk on the show many times about your
• 21:43
  Speaker 2: required minimum distributions and when those start, and that age
• 21:46
  Speaker 2: has continued to move out now to age seventy three
• 21:50
  Speaker 2: and eventually seventy five, depending on the year you were born.
• 21:54
  Speaker 2: But people don't understand this that they can still put
• 21:57
  Speaker 2: money into their traditional iras as long as they have
• 22:01
  Speaker 2: earned income. So you can do that even past the
• 22:04
  Speaker 2: age of seventy and a half. We have clients approaching
• 22:07
  Speaker 2: the age of eighty. They are still working, they are
• 22:10
  Speaker 2: still putting money into iras and retirement plans, so you
• 22:15
  Speaker 2: know more to them. Great job. Just know there's places
• 22:19
  Speaker 2: to store away your wealth and it can grow for you.
• 22:22
  Speaker 1: Really good to hear about savings. As we talked this
• 22:24
  Speaker 1: morning with Malia Quavis and Eric Schwartz. They are our
• 22:27
  Speaker 1: retirement planning professionals from Class Financial. The website cossfinancial dot
• 22:30
  Speaker 1: com that's k l aas Financial dot com. Are twelve
• 22:33
  Speaker 1: number six so eight four four two five six three
• 22:36
  Speaker 1: seven no charge for that initial gets to know your
• 22:38
  Speaker 1: appointment at Coss Financial. It will be complementary to you.
• 22:42
  Speaker 1: So Eric, Malia had mentioned earlier that unemployment benefits, those
• 22:46
  Speaker 1: are taxable. I know sometimes folks wonder what about Social Security?
• 22:50
  Speaker 1: Is that taxable? And does everybody you know do I
• 22:53
  Speaker 1: have to file a tax return? What do we need
• 22:55
  Speaker 1: to know there?
• 22:57
  Speaker 3: Yeah, those are questions we hear a Lot's start with
• 23:00
  Speaker 3: the first one there, social Security. So you will have
• 23:03
  Speaker 3: to pay federal income taxes on up to eighty five
• 23:07
  Speaker 3: percent of your benefit, So you know, anywhere from zero
• 23:11
  Speaker 3: to eighty five percent of your benefit is actually taxable,
• 23:14
  Speaker 3: and the amount of that depends on what your total
• 23:17
  Speaker 3: income is for the year. There's no tax on Social
• 23:21
  Speaker 3: Security at the state level in Wisconsin and in Illinois,
• 23:25
  Speaker 3: so essentially, if you live in one of those two states,
• 23:27
  Speaker 3: fifteen percent of your benefit is tax free overall. Right,
• 23:31
  Speaker 3: you're not paying tax on the whole amount at the
• 23:35
  Speaker 3: federal level, only up to eighty five percent, and no
• 23:38
  Speaker 3: state tax is Due to the second question, there are
• 23:43
  Speaker 3: situations where you don't need to file an income tax return,
• 23:47
  Speaker 3: and that's largely dependent on your age, your filing status,
• 23:51
  Speaker 3: and your income. If you didn't have any income, then
• 23:54
  Speaker 3: you probably don't need to file, but again, make sure
• 23:57
  Speaker 3: you check with a tax prepairer just to be sure.
• 24:02
  Speaker 3: In twenty twenty five, you likely won't need to file
• 24:04
  Speaker 3: a tax return if a few of these next topics
• 24:10
  Speaker 3: are true for you. So, if you are under age
• 24:13
  Speaker 3: sixty five, if you are filing single, you don't have
• 24:17
  Speaker 3: any special circumstances that require you to file. For example,
• 24:21
  Speaker 3: if you're self employed and you have self employment income
• 24:25
  Speaker 3: to report, you do need to file if you earn
• 24:29
  Speaker 3: less than fourteen six hundred dollars. Okay, so that was
• 24:32
  Speaker 3: the standard deduction that Leah was referencing earlier. Now, in
• 24:37
  Speaker 3: most cases, if you only receive Social Security benefits, you
• 24:41
  Speaker 3: likely won't have any taxable income and wouldn't need to
• 24:45
  Speaker 3: file a tax return. But one thing to watch out
• 24:47
  Speaker 3: for with social Security benefits is if you are married
• 24:51
  Speaker 3: but file a separate return from your spouse who you
• 24:54
  Speaker 3: lived with during the year, then you will always have
• 24:57
  Speaker 3: to include at least some of your Social Security benef
• 25:00
  Speaker 3: fits in your taxbile income to see if it actually
• 25:03
  Speaker 3: is is larger than the standard deduction. So even in
• 25:05
  Speaker 3: those really simple, well seemingly simple situations where you only
• 25:09
  Speaker 3: have Social Security income, it can get complicated and you
• 25:12
  Speaker 3: may want to actually work with a text prepare.
• 25:15
  Speaker 1: We're going to talk about that tax prepare and how
• 25:18
  Speaker 1: much do you expect to pay. We'll get those details
• 25:19
  Speaker 1: in just a moment. Great information from Eric Schwartz and
• 25:22
  Speaker 1: Malia Quavis. They are our retirement planning professionals from COSS Financially.
• 25:26
  Speaker 1: You can learn more on the website COSS financial dot
• 25:28
  Speaker 1: com that's k l aas Financial dot com and their
• 25:31
  Speaker 1: telephone number six so eight four four two five, six
• 25:34
  Speaker 1: three seven. We'll get to that question about how much
• 25:37
  Speaker 1: you should expect to pay as well as the COSS
• 25:39
  Speaker 1: quiz question Leak. We'll do that with you next as
• 25:42
  Speaker 1: Money in Motion with Cost Financial continues right here on
• 25:45
  Speaker 1: thirteen ten. WIBA join this week by our retirement planning
• 25:51
  Speaker 1: professionals Malia Quavis and Eric Schwartz. Of course they do
• 25:54
  Speaker 1: come to us from COSS Financial the website coss financial
• 25:57
  Speaker 1: dot com. That's k l aa S Financial dot com
• 26:00
  Speaker 1: dot com at the top for number six oh eight
• 26:02
  Speaker 1: four four two five six three seven. No charge for
• 26:05
  Speaker 1: the initial gets to know your appointment at COSS Financially
• 26:07
  Speaker 1: it will be complementary to you again their number six
• 26:10
  Speaker 1: oh eight four four to two five six three seven.
• 26:14
  Speaker 1: Talking about taxes working with a tax prepare as well
• 26:17
  Speaker 1: this week and Malia, as we've been talking about this stuff.
• 26:20
  Speaker 1: Of course, people always wonder about costs and value and
• 26:23
  Speaker 1: those type of things. What what should we expect? How
• 26:26
  Speaker 1: much should you expect to pay for a tax prepare
• 26:28
  Speaker 1: to have them and do your taxes?
• 26:31
  Speaker 2: Yeah, so this goes back to our favorite answer, which
• 26:34
  Speaker 2: depends It depends on the complexity of your return. Of course,
• 26:38
  Speaker 2: the firm you're working with. Actually, the National Association of
• 26:42
  Speaker 2: Tax Professionals, they reported in twenty twenty three the national
• 26:47
  Speaker 2: average to complete Form ten forty's income tax returns and
• 26:51
  Speaker 2: the corresponding state returns average was around two hundred and
• 26:55
  Speaker 2: forty eight dollars. If you're filing eleven twenty S corporation,
• 27:03
  Speaker 2: that would be probably triple that amount. So you know,
• 27:07
  Speaker 2: on the surface it's going to range. I would say,
• 27:09
  Speaker 2: we see anywhere from three to seven hundred dollars. Quite
• 27:13
  Speaker 2: often once in a while client will say, well, my
• 27:16
  Speaker 2: my prepare does it for fifty dollars. They've been charging
• 27:19
  Speaker 2: me fifty dollars for the last twenty years, so that's great.
• 27:23
  Speaker 2: Those are probably simpler taxes, but obviously the complexity around
• 27:28
  Speaker 2: various tax schedules. We really don't want you to miss
• 27:33
  Speaker 2: possible tax credits, like Eric mentioned, and so that's what
• 27:37
  Speaker 2: you're paying for, is that complexity many times and again
• 27:41
  Speaker 2: having that person standing in your corner to help if
• 27:44
  Speaker 2: there's any questions from the IRS. But you know, everybody,
• 27:49
  Speaker 2: as you say, wants to find value. So you can
• 27:53
  Speaker 2: actually file your taxes free through the IRS if you
• 27:57
  Speaker 2: have certain qualifications or you meet certain conditions. They have
• 28:02
  Speaker 2: what's called the IRS Free File Alliance Program. So the
• 28:07
  Speaker 2: situation on that is there's a cap on income, so
• 28:10
  Speaker 2: for twenty twenty four it's going to be about seventy
• 28:13
  Speaker 2: nine thousand dollars. They slightly adjusted every year, and so
• 28:17
  Speaker 2: taxpayers possibly can qualify with their IRS Free File Partner
• 28:22
  Speaker 2: offers if in fact their income is below that. But
• 28:26
  Speaker 2: you would go to the IRS website find out who
• 28:30
  Speaker 2: those preferred partners are and possibly qualified if your income's
• 28:34
  Speaker 2: greater than that threshold. There are free file fillable forms. Again,
• 28:40
  Speaker 2: they're electronic that you can access and again go to
• 28:44
  Speaker 2: IRS dot gov to access those. But finally, most people say, well,
• 28:50
  Speaker 2: I just like to buy the tax software and do
• 28:51
  Speaker 2: it myself, and many people are very successful doing that,
• 28:56
  Speaker 2: you know, but you're still your output on that it's
• 28:58
  Speaker 2: going to be anywhere from probably seventy dollars to one
• 29:01
  Speaker 2: hundred and fifty dollars, So there is always something you're
• 29:04
  Speaker 2: going to have to pay, probably to make sure you're
• 29:06
  Speaker 2: staying up on the changes and so forth. So you know,
• 29:10
  Speaker 2: we do hear this more often than not, people doing
• 29:14
  Speaker 2: it on their own and getting a letter back from
• 29:16
  Speaker 2: the IRS, and they're like, well, I thought I marked
• 29:19
  Speaker 2: all the boxes and so forth. Someone told me recently though,
• 29:23
  Speaker 2: that there is some help to be had using some
• 29:27
  Speaker 2: of these programs. You get a letter back from the IRS,
• 29:30
  Speaker 2: you could call H and R Block for example, or
• 29:33
  Speaker 2: some other ones and request for someone to call you
• 29:35
  Speaker 2: back and they might be able to assist you to
• 29:39
  Speaker 2: see if there was something. Perhaps you did so. I
• 29:42
  Speaker 2: just heard that secondhand, but that's a possibility. Obviously, we
• 29:45
  Speaker 2: want to answer to the IRS as long as it's
• 29:49
  Speaker 2: coming in the mail. So does a quick reminder out there.
• 29:52
  Speaker 2: IRS never calls you. Okay, you can call them, but
• 29:57
  Speaker 2: they will never call you. And if they leave you
• 30:00
  Speaker 2: a message, it's not them. It could be a scam.
• 30:04
  Speaker 2: So only if you get something in the mail from
• 30:06
  Speaker 2: the IRS, and you would call the actual IRS number
• 30:10
  Speaker 2: IRS dot gov to verify that should you be responding, really.
• 30:15
  Speaker 1: Important reminder this morning from Malia Quavis and Eric Schwartz.
• 30:18
  Speaker 1: They are our retirement planning professionals from Class Financial. The
• 30:21
  Speaker 1: website class financial dot com. That's k l Aasfinancial dot com.
• 30:25
  Speaker 1: Telephon number for Class Financial six oh eight four four
• 30:27
  Speaker 1: two five six three seven going to hold on to
• 30:30
  Speaker 1: the telephon number now because it's time for the cossquiz
• 30:32
  Speaker 1: question the week. It works like this, just a moment,
• 30:34
  Speaker 1: I'll ask you the class quiz question a week. We'll
• 30:36
  Speaker 1: then have thirty minutes from the today's program to call
• 30:38
  Speaker 1: the Class Financial Office right here in Madison at six
• 30:41
  Speaker 1: oh eight four four two five six three seven. If
• 30:43
  Speaker 1: you are the first car correct answer to win this
• 30:45
  Speaker 1: week's prize, which is a twenty five dollars gift card
• 30:48
  Speaker 1: to Cabela's. This week's class quiz question week is this
• 30:51
  Speaker 1: what is the maximum that you can put away into
• 30:54
  Speaker 1: your four oh one K in twenty twenty four if
• 30:57
  Speaker 1: you are fifty five years old? Is it twenty five thousand,
• 31:01
  Speaker 1: five hundred dollars or thirty thousand, five hundred dollars? Telephone
• 31:05
  Speaker 1: number six oh eight four four two five, six three seven.
• 31:08
  Speaker 1: If you are the first cost correct answer, you win
• 31:10
  Speaker 1: this week's prize. Again, it's Class Financials Office right here
• 31:13
  Speaker 1: in Madison and again that's six oh eight four four
• 31:16
  Speaker 1: two five six three seven. Eric Malia, it's always great
• 31:20
  Speaker 1: chatting with you guys. Enjoy this beautiful day.
• 31:22
  Speaker 2: Thanks Sean.
• 31:23
  Speaker 1: Doctor Mardy Greer comes your way. Next right here. On
• 31:25
  Speaker 1: thirteen ten wiv E