Keep up to date on the latest tax and accounting news and updates to our firm.
Keep up to date on the latest tax and accounting news and updates to our firm.
Responding to a letter from the IRS isn’t a weekend do-it-yourself project that you should attempt to tackle on your own.
In this month’s newsletter, learn why you should partner with a tax expert if you receive either a notification saying the IRS will be auditing you, or a notice that simply says another tax document was found and you owe an additional $100.
Also in this edition, find out why retiring early is catching on FIRE, tips to avoid the summertime tax blues, and ideas to keep your summer energy costs as low as possible.
As always, feel free to pass this information on to anyone that may find it useful and please call if you have any questions or concerns.
Sleuthing your way through a tax audit or responding to a letter from the IRS by yourself is not the same as fixing a leaky faucet or changing your oil. Here are reasons to partner with a tax professional as soon as you receive a letter from the IRS:
Is trying to retire in your 30s or 40s the right move for you?
Retiring early is an idea that an entire community of people across the United States is putting into action. It even has an official name – Financial Independence Retire Early, or FIRE. Read on to find out how it works. And who knows – maybe you or someone you know may want to try it!
The origins of FIRE started in the early 1990s when a former Wall Street analyst, Joe Dominguez, shared his story in the book Your Money or Your Life about retiring at age 31, never to work again, and have total financial independence. The ideas presented in the book became popular during the 2008 financial crisis when younger people started re-evaluating the historical practice of working a 9-to-5 job until age 65 or older. Many people identified with what Dominguez discussed in his book, especially doing things when they're younger rather than waiting for the golden years of retirement.
The FIRE concept is built on extreme saving and frugality in your early years so you can comfortably live with enough money well before the traditional retirement age of 65. Here are some of the basic rules:
While retiring early and having total freedom sounds great in theory, some people struggle with boredom and overspending after achieving FIRE. One option to consider if you find yourself in this situation is called coasting. Instead of completely retiring in your 30s or 40s, coasters simply downshift to a less demanding or more enjoyable job to continue earning money while also enjoying the benefits of financial freedom without the stresses of maintaining a certain income level.
While the FIRE movement isn't for everyone, you can adopt your own variation by saving as much as you can while you're working so you can enjoy some level of financial independence as soon as you can.
If you picked up a part-time job for some extra summer spending money, you may have to set aside some of your cash for taxes. Here are some tips to help you manage the taxes on your summer earnings:
With a little tax planning, you can ensure that your summer job or side hustle provides the income you're looking for without the disappointment of unexpected taxes. Please call if you have any questions.
Summer temperatures can feel just fine when you're spending time outdoors, yet most of us want our homes to always feel cool and comfortable. That often means cranking up the air conditioning and turning on all the ceiling fans, which typically leads to higher energy bills until fall arrives.
Fortunately there are some ways to keep your home cool without blowing the budget on your utility bill and needing to make cuts elsewhere. Consider these energy-saving steps this summer:
By being more intentional about the energy you use and taking steps to prevent energy loss, you can stay cool this summer without breaking the bank.
IRS auditors do this for a living – you don’t. Seasoned IRS agents see your situation many times and know the rules better than you. Even worse, they are under no obligation to teach you the rules. Just like a defendant needs the help of a lawyer in court, you need someone in your corner that knows your rights and understands the correct tax code to apply in correspondence with the IRS.
The origins of FIRE started in the early 1990s when a former Wall Street analyst, Joe Dominguez, shared his story in the book Your Money or Your Life about retiring at age 31, never to work again, and have total financial independence. The ideas presented in the book became popular during the 2008 financial crisis when younger people started re-evaluating the historical practice of working a 9-to-5 job until age 65 or older. Many people identified with what Dominguez discussed in his book, especially doing things when they're younger rather than waiting for the golden years of retirement.
Take advantage of tax-free earnings limits. If you anticipate making less than the annual standard deduction ($14,600 for single taxpayers in 2024), none of your earnings are subject to federal taxes! If possible, earn at least that amount each year to maximize your tax-free earnings. Remember, this only applies to earned income like your summer job. These rules do not apply to sources of income such as interest income or dividend income.
Summer temperatures can feel just fine when you're spending time outdoors, yet most of us want our homes to always feel cool and comfortable. That often means cranking up the air conditioning and turning on all the ceiling fans, which typically leads to higher energy bills until fall arrives.