Blog

As the year wraps up, consider how to maximize your charitable contributions. This article highlights trends in giving and offers strategies like using IRAs, donor-advised funds, and charitable trusts. Learn how to select the right charity and make the most of your donations, both personally and tax-wise.

With 33% of Americans facing identity theft, protecting your information is essential. Here are quick strategies:
*Review statements for suspicious activity.
*Freeze your credit to block unauthorized access.
*Use unique passwords for each account.
*Shred sensitive documents.
*Limit personal items in your wallet.

Consider identity theft protection services, and act quickly if you suspect theft by placing fraud alerts on your credit reports

As a small business owner or aspiring entrepreneur, you need to be aware of a new reporting requirement under the Corporate Transparency Act (CTA) passed in 2021. By 2024, businesses must report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This applies to individuals owning more than 25% of a company, directly or indirectly, and includes details like name, date of birth, and address. The CTA aims to combat money laundering by increasing corporate ownership transparency. Non-compliance can result in significant penalties, so consult a tax, legal, or accounting professional for guidance. Visit FinCEN's website for more information.

Recent trends show stocks and bonds moving in the same direction, challenging the traditional diversification strategy that relies on their negative correlation. This shift began in 2022 due to the Federal Reserve's interest rate hikes and economic concerns, impacting both asset classes similarly. While some view this positive correlation as a return to historical norms, the principle of diversification remains important, though it may require adaptation to current economic conditions.

Retirees face several unique challenges when managing their income, particularly when it comes to taxes. From understanding how taxes relate to Social Security and Medicare to determining when to tap taxable and tax-advantaged accounts, individuals must juggle a complicated mix of factors. Putting together a retirement-income strategy that strives to manage taxes is a complex task indeed. Investors may want to seek the help of a qualified tax or financial professional before making any final decisions

Municipal bonds are issued by public entities such as state and local governments, health systems, universities, and school districts to help finance the building and maintenance of infrastructure projects such as roads, airports, water systems, and facilities. The interest paid by municipal bonds is generally exempt from federal income tax, as well as from state and local taxes if the investor lives in the state where the bond was issued.

In December 2022, Congress passed the SECURE 2.0 Act. It introduced two new rules relating to 529 plans and student debt that will take effect in 2024. The first provision allows for tax- and penalty-free rollovers from a 529 plan to a Roth IRA. The second provision allows student loan payments made by employees to qualify for employer retirement matching contributions. The overall goal is to help young adults start saving for retirement.

The Inflation Reduction Act of 2022 provided the IRS with an influx of funding to modernize outdated technology and rebuild a depleted workforce. We discuss audit rates and the factors that can cause an individual to be chosen for an audit, as well as tips to help taxpayers avoid unwanted attention from the IRS. With a greater focus on compliance, now is the time to consult an experienced tax professional for personalized guidance.