Tax Help for Your 2018 Filing

2018 Marginal Income Tax Rates and Brackets

Revised  Income Brackets and Marginal Tax Rates  What are marginal tax rates?  It’s the percentage of your income that you pay in taxes.  Good news –the brackets (or income ranges) were lowered so most of us will be paying 2-3% less income tax. Find your annual income range and the associated percentage you'll pay below

Example: If you are single making $50,000/year you are in the 22% tax bracket

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Standard Deduction 2017 compared to 2018

The standard deduction was almost doubled to simplify the process and encourage less people to itemize their deductions. The 2018 tax reform bill got rid of the personal exemptions. To see what was eliminated click here.

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Be Savvy With Your Tax Refund

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by Stacy Francis, CFP®, CDFA

One of the only positive aspects to tax season is your refund. A new pair of shoes, dress or a vacation are all tempting choices for us to spend our tax return money. While a small splurge is a must, these extra dollars also give you a chance to improve your finances for the long haul.

There are five important areas you can invest the money returned from Uncle Sam that will help you get ahead much more than buying that cute pair of shoes.

1. Pay off all your credit card debt-

  • Paying just the monthly minimum on your credit cards is not a smart move. By doing such, you are not using credit wisely.

  • Over time the amount you owe will keep accumulating, bringing the original purchases you made to be more than triple the initial cost.

  • You do not build any equity by using credit cards.

  • Paying off your debt will strengthen your credit rating, which then leads to a lower interest rate.

2. Open an emergency fund-

  • You should have at least 3-6 months of your living expenses saved in an emergency fund for unexpected emergencies.

  • A Capital One and Ally savings accounts have interest rates upwards of 1%.

  • You receive 24-hour access to your funds and it takes about five minutes to open an account.

3. Open an IRA-

  • The greatest advantage of opening an IRA is to invest in your retirement. IRAs offer significant tax advantages as well.

  • IRAs are free to open.

  • You can invest $5,500 for 2015 before April 15th, 2016. If you are over age 50, you can sock away up to $6,500.

4. Invest in yourself-

  • Your biggest asset is not your bank account balance, it is actually your earning capacity.

  • Spend your money on continuing education classes that will increase your marketability, promotion chances and employment value.

  • You could also start your own business to bring in extra income over time.

5. Pay down your mortgage-

  • More than half of your monthly mortgage goes towards paying off your interest payments.

  • It provides a return on investment more reliable than anything the stock market can offer.

  • If you pay more than your monthly payments, it goes directly to your principle. Hence, you can shave a lot of time off your mortgage.

Consider these five ways to spend your tax refund and you will have greater financial security now and beyond.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Tax Preparation & Filing Made Simple

by Stacy Francis, CFP®, CDFA

Tax season is here! Time to panic over lost receipts, missing information on cost bases for stocks, and 1099s that won’t ever show up; or, time to spend an afternoon with your CPA; or, click a few buttons on your computer keyboard? It all depends on how organized you’ve been and how well you’ve prepared throughout the year, not just in April. Below are a few tips for how to reduce your tax-related paperwork, now and in the future.

Meet with a CPA This is by far the easiest way to take the tax filing burden off your shoulders. CPAs file people’s taxes for a living, so you can trust that they know all the tricks and traps. Save yourself time and hassle by asking friends, colleagues or family for a referral.

E-File If you do not wish to use an accountant, you can find a variety of simple and user-friendly e-filing programs online. Many of them are free, as long as your income is below certain limits. Save yourself some wrestling with your printer and a trip to the post office by filing online. The Manila Folder Throughout the year, you will need to save documents such as receipts and transaction reports from your investment accounts. Whenever you receive one of these documents, stick it in a labeled manila folder. If you’re paperless, create a folder on your computer for the same purpose.

Take Advantage of IRA Accounts Saving in IRA accounts will save you heaps of paperwork, as this eliminates the need to track cost basis and sales price for each security, and include these in your tax report. Once the money is in your traditional IRA or 401(k), it is off your tax record until you start to make withdrawals, at retirement. In case of a Roth IRA, you never have to worry about it again!

Take the Standard Deduction True, many people save a lot of money by itemizing . . . but it does require both time and effort. If your objective is to keep things simple, take the standard deduction. However, it is usually worth it to itemize. It could save you a lot of money.

Filing your taxes is never fun – unless, of course, you are expecting a huge refund! Use these tricks to simplify your tax filing process and minimize the time you need to spend in your home office, shuffling paperwork.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Tax Preparation & Filing Made Simple

by Stacy Francis, CFP®, CDFA

Tax season is here! Time to panic over lost receipts, missing information on cost bases for stocks, and 1099s that won’t ever show up; or, time to spend an afternoon with your CPA; or, click a few buttons on your computer keyboard? It all depends on how organized you’ve been and how well you've prepared throughout the year, not just in April. Below are a few tips for how to reduce your tax-related paperwork, now and in the future.

Meet with a CPA This is by far the easiest way to take the tax filing burden off your shoulders. CPAs file people’s taxes for a living, so you can trust that they know all the tricks and traps. Save yourself time and hassle by asking friends, colleagues or family for a referral.

E-File If you do not wish to use an accountant, you can find a variety of simple and user-friendly e-filing programs online. Many of them are free, as long as your income is below certain limits. Save yourself some wrestling with your printer and a trip to the post office by filing online.

The Manila Folder Throughout the year, you will need to save documents such as receipts and transaction reports from your investment accounts. Whenever you receive one of these documents, stick it in a labeled manila folder. If you're paperless, create a folder on your computer for the same purpose.

Take Advantage of IRA Accounts Saving in IRA accounts will save you heaps of paperwork, as this eliminates the need to track cost basis and sales price for each security, and include these in your tax report. Once the money is in your traditional IRA or 401(k), it is off your tax record until you start to make withdrawals, at retirement. In case of a Roth IRA, you never have to worry about it again!

Take the Standard Deduction True, many people save a lot of money by itemizing . . . but it does require both time and effort. If your objective is to keep things simple, take the standard deduction. However, it is usually worth it to itemize. It could save you a lot of money.

Filing your taxes is never fun – unless, of course, you are expecting a huge refund! Use these tricks to simplify your tax filing process and minimize the time you need to spend in your home office, shuffling paperwork.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

The Scoop on IRAs and Tax Losses

by Stacy Francis, CFP®, CDFA

My friend who is a stockbroker wrote heaps of sell tickets for his clients back in December of last year. This may seem controversial, considering that finance gurus always advise us to sell high and buy low and it has been a long, long time since stocks traded as low as they did at the time. However, selling stocks in a down market has one huge advantage: you can deduct the losses from your taxable income. Especially thinly traded, volatile stocks that have performed poorly throughout the year tend to be hammered to the ground in December, only to rebound in January as investors with a long-term, bullish perspective pick them back up again.

Taking advantage of these losses in your regular, taxable accounts is a no-brainer. But at times, it can pay off to take tax losses in your retirement accounts as well.

Before you read any further, take note that you can never deduct losses in traditional IRAs or 401(k)s. The reason for this is simple: you already made a deduction when you put the money in the account!

However, if you have a Roth or traditional nondeductible IRA, you may be able save a few tax dollars, as long as your cost basis is higher than your current account value. Unfortunately, this type of transaction has several drawbacks.

First of all, in order to deduct a loss, you need to liquidate the entire account. When you want to build it back up again, all the usual limits and restrictions will apply to you. Furthermore, losses in these accounts cannot be deducted directly from your taxable income – they can only be used as parts of an itemized deduction. Therefore, they are much less beneficial for this purpose than losses in regular, taxable accounts.

To sum up, taking a tax loss in your Roth or traditional nondeductible IRA may make sense if you have accrued only a tiny balance and you itemize. If you have a large amount of money saved up, you don’t itemize, or your account is either a 401(k) or a traditional IRA, don’t bother.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Nanny Tax 101

by Stacy Francis, CFP®, CDFA

I do not make it a habit to eavesdrop, but the girls at the table next to me at the smoothie bar this morning were so loud and animated, there was no way around it. They were all international students, pushing the benefits of babysitting to the newest girl in the gang. It’s the perfect extra job, they said, because you don’t need a work permit.

Most moms will know this isn’t true. But since this isn’t the first time I have encountered this misperception, allow me to shed some light on employees in your home and taxes.

If you drop your child off at a sitter’s house on your way to work, and pick him or her up on your way home, the babysitter is not your employee. However, if your nanny works in your home and under your direction, she is considered an employee - regardless how many hours per week, month or year she does so. This means you both have to pay taxes. In order to do this, your nanny needs a work permit.

Now that we’ve gotten that part straightened out, let’s put this into numbers. If you pay your employee $1,400 per year or more, you need to withhold 7.65% percent from his or her paycheck, and then match this (a total of 15.3%). Minors under 18 and relatives such as parents and spouses are exempt from this rule.

If your employer has a childcare spending plan, you may be able to save some on your taxes and put money away pre-tax, to use for childcare. Even if you do not have access to such a plan, you may still qualify for a dependent care tax credit of 20-35% of the first $3,000 you spend ($6,000 if you have more than one child).

So while it may come as a surprise that such transactions are subject to taxation, you get a break, too. Not too shabby, is it?

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Top 5 Tax Savers

by Stacy Francis, CFP®, CDFA

My friend, who would normally never talk to anyone about money, invited me over for dinner last weekend to discuss her financial situation. Her husband's salary dropped significantly and they're struggling to survive on her salary alone. They just crunched some numbers in their efiling software and learned that they owe the IRS almost $8,000. With no savings left except for the money stashed in their IRA accounts, how are they supposed to come up with the money?

Before you pull cash out of your IRAs or take out a loan, I told them, let me take a look at those numbers and see if I can shrink that tax bill. Many people pay more tax than they need to because the tax code is complicated and the thought of studying it in detail makes them queasy.

If you are one of these people, at least make sure you are aware of these top five tax savers.

  1. Investment losses. I expect this to be one of the biggest tax savers. If you sold these types of securities, you may be able to deduct the losses from your tax basis. You can offset capital gains against capital losses. If you still have losses left over (as many of us do) you can deduct up to $3,000 off your taxes each year until you have used the total loss.

  2. If you have an IRA, take your contributions to the limit. As long as you opened the account before the end of last year, you have until April 15 to add more money – and deduct it from your taxes if your income is low enough that you qualify to deduct your IRA contributions.

  3. Itemize. Most people use the standard deduction – to their loss! True, the paperwork involved in itemizing can be substantial. But many times your savings are, too.

  4. Skip your AMT. While difficult and best done by an accountant, in some cases you may be able to skip out on this tax (yes, legally) by taking smaller deductions in certain places.

  5. Save receipts for those charitable donations. Even my yoga studio has switched over to a donation-based not-for-profit. Keep track of your receipts and you can lower your tax basis.

Should you do your own taxes?

How much tax should you withhold?

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Taxes: How Much Should You Withhold?

by Stacy Francis, CFP®, CDFA

With only weeks to go before the arrival of my daughter, I go to a great deal of routine checkups. Fortunately, my doctor’s office is an efficient one, and I rarely have to wait for more than ten minutes. Yesterday, the other mother-to-be in the waiting room was quite chatty. Upon learning that I am a financial planner, she told me all about her savings strategy. She claims zero dependents even though she is the main breadwinner in her marriage and has a son. Consequently, every spring she receives a huge tax refund. She splits the money evenly between vacations and her savings account.

While it can be a major relief to receive a check rather than a bill from the IRS, her strategy has one drawback: in essence, she is granting the IRS an interest-free loan. If she would claim the correct number of dependents, she would keep a larger portion of her paycheck every month, and thus be able to invest the money earlier and start to make returns.

But before you slash your withholdings altogether to reverse the situation, so that you get an interest-free loan from the IRS, note that paying far too little taxes throughout the year can easily result in a $20,000 – or even a $50,000 – tax bill, enough to give the healthiest amongst us a stroke!

So what’s the golden number? Opt for the middle of the road, so that in the spring you get neither a terrifying bill nor a huge refund. That way, you safeguard yourself from financial panic and make the most out of your investment capital.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Tax Breaks for Your Investment Losses

by Stacy Francis, CFP®, CDFA

My girlfriend called me up last night. “So,” she told me, “I was seconds away from selling these bonds I have so that at least I’d get a tax write-off, when I realized that’s not how it works with bonds. If I hold them until maturity, I will get my money back, won’t I?” I was so proud of her! She remembered! A major difference between stocks and bonds is just that – bonds have a maturity date, while stocks don’t. This is part of the reason bonds are considered “safer” investments. 

If my friend had owned stocks, her thinking would have been very strategic. Many investors sell stocks that are down just before the end of the year, and use the capital loss to lower their tax bills. This is a great idea for stocks, but does not work as well with bonds. 

In the case of mutual funds, things get a tad bit more complicated - or complex, perhaps. The fund managers buy and sell securities now and then, and unless you keep a very close eye on the fund, you will be notified via mail whether you are entitled to a tax write-off or owe the IRS money. Since the fund managers may have bought securities several years ago and sold them during the past year, it is possible that you will have a taxable capital gain even when your fund is down. Conversely, it is also possible that you will be able to do a tax write-off even though your fund is up.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Donating to Non-Profits: Good Karma and Even Better Tax Breaks

by Stacy Francis, CFP®, CDFA

Tax season is here! A great time for anyone expecting a refund, and a not-so-great time for those who now have to come up with a chunk of cash for the IRS, on top of all their other bills and financial responsibilities. For the financially savvy, tax season is a fantastic opportunity to be clever and score some free money – or at least a smaller tax bill.

One fabulous way to reduce your tax bill is to donate to non-profits. For those of you who usually e-file, note that this rule includes far more organizations than the ones your tax program suggests after you have entered your data. There are literally thousands of non-profits from which to choose – ranging from religious institutions to organizations dedicated to curing diseases to those committed to financial empowerment for women like Savvy Ladies. And the tax break remains the same: if you donate $1,000, you will lower your tax basis with that amount, thus paying up to $350 less in federal taxes, depending on your current tax bracket.

And it gets better. Not only do you get a tax break, but you can help these organizations make the world a better place and improve your own life by generating goodwill and good karma.

No wonder so many US charities blossom!

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Should You Do Your Own Taxes?

by Stacy Francis, CFP®, CDFA

My college friend was red-faced and bursting with anger when we met for after-work cocktails the other day. She arrived straight out of a meeting with her tax accountant, who had failed yet again to get her the tax refund so many people received last spring, and for which she was eligible. “Next time,” she muttered between her teeth, “I am going to do the taxes myself. What am I paying him for anyway?”

I tried to explain to her that whether or not you get a tax refund should not reflect on the quality of your accountant. In the safety of my home, away from her rage, I realized that her real question is “Should you do your own taxes, or hire someone to do them for you?”

To answer that question, here are a few things indicating that you could be better off on your own:

  • You know your filing situation (you are up to date with legislation, know your status, etc) and have a very simple financial situation.

  • You are organized and have your paperwork ready to go.

  • You prefer not to disclose your financials to anyone.

On the other hand, these things may be signs you need help:

  • Your financial situation is complex.

  • You don’t want to waste time and energy preparing your return.

  • Your life has changed drastically, and your filing this year will be very different from last year.

  • You want the confidence of working with a trusted advisor.

Or, alternatively, if you are so furious at your accountant that you run the risk of expiring from a heart attack, you may also be better off on your own.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Taxes: Should You File Jointly or Separately?

by Stacy Francis, CFP®, CDFA

Even after tax season has come and gone, one of the main topics of discussion at a recent seminar was: what are the benefits versus drawbacks associated with married couples filing separately? An excellent question. However, just like with so many other excellent questions, the answer will depend on the circumstances. Below are a few examples of cases where it may be a good idea to keep this one aspect of your life together separate.

  1. You or your hubby has made little money and had lots of medical expenses. By filing separately, the proportions of the two may work out so that you or your hubby can itemize the medical expenses and save well-needed dollars.

  2. Your partner uses questionable techniques for keeping his tax dollars to himself. While tempting, such actions are illegal, and if you sign the same tax return, you, too, are responsible. If you file separately, your chances of arguing in front of a jury that you didn’t know are much better.

  3. Your marriage is crumbling. If you are fairly certain that your twosome isn’t going to last, you may want to file separately in order to minimize the paperwork you need to do together later. It is also important to file separately if you are concerned that he is not being 100% honest on his tax reporting.

Last but not least, it is imperative that you stay up to date with the newest rules and limits for the different tax brackets. Taxation is a complicated matter – but you do have options. When you add knowledge to the pot, you can make an informed decision.

Should you prepare your own taxes?

1 Comment

Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.

Save Money on Taxes

by Stacy Francis, CFP®, CDFA

Tax refunds are finally here! While I didn’t receive one myself (people in my business rarely do), many of my clients did, and many chose wisely – they decided to invest at least part of the money. In order to help you score a refund (or if you get a refund, to help you get more next year), here are a few things you may not know you can deduct.

  1. College tuition expenses. As long as you’ve kept the receipts from your payments and the school is bona fide, you can save quite a lot this way

  2. Charitable donations. This deduction is not just available for the organizations that pop up toward the end of your filing when using FreeTaxUSA, but it applies to a wide range of causes and organizations. Find one that makes your heart beat a little faster, and save yourself money while saving the whales.

  3. Car mileage and expenses. The many of you who commute to your place of employment can feel a little better about all that money you burned at the pump.

  4. Out-of-pocket medical expenses. Had to go to the emergency room, and had a fallout with your insurance company about eligibility? You are not alone, and now you can get some of your money back – hopefully easing the pain a little.

  5. In certain situations, you can deduct numerous expenses related to job hunting. So if you are sending our resumes and interviewing, don’t toss your receipts!

  6. Childcare is, thankfully, many times tax deductible.

While this list is far from complete, it should provide you with a nice starting point for paying less taxes.

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Stacy Francis, CFP®, CDFA

Stacy Francis is the Founder, CEO and President of Francis Financial, Inc., a Wealth Management and Financial Planning firm. With over 18 years of experience in the financial industry, she is a CERTIFIED FINANCIAL PLANNER™ (CFP®), a Certified Divorce Financial Analyst™ (CDFA™), and a Certified Estate Planning Specialist (CES™). She is the Co-Director of the Association of Divorce Financial Planners’ (ADFP) Greater New York Metro Chapter and a member of the Women Presidents’ Organization (WPO) and an honoree member of the Private Risk Management Association (PRMA). A nationally recognized financial expert, Stacy has appeared on ABC News, CNBC, CNN, PBS Nightly Business Report, The Today Show, Good Morning America, Fine Living Network, and The O’Reilly Factor. Stacy attended the New York University Center for Finance, Law and Taxation.