• Taxes

    How to Get the Most Money Back on Your Tax Return

    Written By: David HesselFiduciary Financial Advisor in Brookfield Wisconsin

    Between gathering the necessary paperwork and working through complicated scenarios, tax season can be a stressful time. You’ve worked hard throughout the year, and you want to be sure you’re taking the right measures to get the maximum amount back on your return. Achieving this, however, takes diligence and research.

    5 Considerations to Make During Tax Season

    By taking a look at your whole financial picture, you’ll have a better idea of the actions you can take to minimize your tax obligation and maximize your return. While this can take some time, it’s worth thinking through all of your expenses in order to increase your potential to receive a sizeable tax return. Luckily, we’ve compiled a list of five key considerations to make when aiming to maximize your return.

    Consideration #1: Claim Your Retirement Tax Deduction

    You can make a contribution to your IRA (up to $6,000 if under 50 and $7,000 if 50 and older) up until the filing deadline to receive a tax deduction.1 If you are covered by a plan at work, you’ll be eligible for either a partial or full deduction depending on whether you’re filing separately, jointly or if you’re single or the head of the household. If not covered by work, you can claim a full deduction.2

    Consideration #2: Claim All Other Possible Deductions

    Many expenses can qualify as a deduction, meaning they can be claimed to help minimize the amount of taxable income. Common qualified expenses include charitable contributions and state and local income, sales and property taxes. However, there are a number of other deductions that all taxpayers should remember. This includes anything related to work education, including tuition, books, supplies, transportation and travel costs.3 If you needed to complete work to maintain a professional certification, for example, anything related to doing so may qualify. Other deductions relating to work include unordinary travel expenses or anything you spent on job-hunting to land the job you are currently in.

    Consideration #3: Make Sure to Claim All Dependents

    A dependent is not limited to children, as it could be a relative who lives in your home as a member of your household. For example, a relative who is not physically or mentally able to care for themselves. If the individual has an income of less than $4,200 and is not a dependent on another individual’s return, they may qualify as your dependent.4 Additionally, the person must be a U.S. citizen, U.S. alien or U.S. national.

    As of the Tax Cuts and Job Act changes in 2017, personal exemption deductions were suspended from 2018 until 2025. However, until then, you can still receive tax credits for children and dependents.5 You may receive up to $500 in tax credits for a qualifying dependent who is not a child of yours. However, this credit may be eliminated or reduced if your adjusted gross income exceeds $200,000 when filing alone or $400,000 when filing jointly.5

    Consideration #4: Consider Itemizing Deduction if You’re Able

    If the sum of your allowable deductions is higher than the standard amount, it’s recommended to itemize your deductions.6 In some cases, you’ll be able to get a bigger refund than taking the standard deduction. If you’re at the cusp of the standard amount, double-checking your receipts and expenses over the year may be an important step in determining whether or not to itemize your deductions. You can itemize deductions on expenses such as medical and dental care, mortgage interest, charitable giving and theft losses.6 However, in certain cases, you’ll be required to opt for one or the other. If you file a joint return with your spouse and you wish to itemize, for example, you and your spouse both must then itemize your deductions.

    Consideration #5: Claim Refundable Tax Credits

    Unlike a deduction that minimizes what you owe or a nonrefundable tax credit that only refunds up to what you owe, a refundable tax credit is money returned to you – such that even if you owe $0, you’ll be sent the remaining balance from the IRS. Refundable tax credits come in many forms. For example, credits may be given to those with expenses in a foreign country in order to avoid double taxation.7 You can also receive a credit when contributing to retirement savings, paying adoption fees or paying higher education expenses.

    If you’re dealing with a complex tax scenario, you can always lean on the assistance of a CPA. Reach out if you’re looking for trusted CPA recommendations. Filing for your taxes can feel like a daunting task, but taking the extra time and effort to make sure you’re taking full advantage of your tax return can pay off.

    Looking for more guidance on how to be financially stress-free? Schedule a 30-Minute Phone Call with David HesselFiduciary Financial Advisor in Brookfield Wisconsinhere or send him an email at dhessel@gvcaponline.com.

    You can find the original article here.

    1. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
    2. https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work
    3. https://www.irs.gov/taxtopics/tc513
    4. https://www.irs.gov/publications/p503#en_US_2019_publink1000203270
    5. https://www.irs.gov/pub/irs-pdf/p5307.pdf
    6. https://apps.irs.gov/app/vita/content/globalmedia/4491_itemized_deductions.pdf
    7. https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

    GVCM is an SEC Registered Investment Advisory firm, headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188. PH: 262.650.1030. David Hessel is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at: https://www.adviserinfo.sec.gov/IAPD/Global View Capital Insurance, LTD. (GVCI) insurance services offered through ASH Brokerage and PKS Financial. David Hessel is an Insurance Agent of GVCI. Global View Capital Advisors, LTD is an affiliate of Global View Capital Management, LTD (GVCM). This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

  • Podcast,  Retirement Planning

    Face The Fear Podcast – Erin Martin, Retirement Plan Adviser, Take 2!

    In this episode, we welcome back Erin Martin, Retirement Plan Adviser at Phillips Financial to talk about 401(k)’s, retirement accounts, vesting and withdrawing money from your 401(k) and how that can impact your long term goals.

    Joining us in this episode is Nick Lucas and Nick Shoemaker, students at the University of St. Francis!

    Instagram: face.the.fear

    Facebook: facebook.com/FaceTheFearFW

    Twitter: @Face_The_Fear

    Website: www.facethefearfw.com

    Email: FaceTheFearFW@gmail.com

    Don’t forget to subscribe, leave a review and share!

    XOXO – Nicole and Kaitlyn

  • Insurance,  Podcast

    Face The Fear Podcast – Tim Kukieza, Disability Insurance Expert

    What is disability insurance, how does it work, and when do you need it? Tim Kukieza, Disability Insurance Expert, answers these questions and many more on this podcast episode – all while cracking a few jokes along the way. Listen in to find out:

    • If someone is young and healthy, why do they need disability insurance now?
    • If someone already has disability insurance through their employer, is there any reason why they may need to buy additional coverage?
    • What exactly does Disability Insurance cover? Will it replace my entire income?
    • How much does DI typically cost for a Millennial?

    Don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

  • Podcast

    Face The Fear Podcast – John Redmaster, CFP – Where should Millennials put their money first?

    John Redmaster, Certified Financial Planner and fellow Millennial, joins us to break down where Millennials should focus their money first. Should we pay down student loans or credit card debt? Save for a home? Invest in a 401(k)? Build up an emergency fund? John helps us find answers to these questions and more on this week’s episode:

    • What tips would you give to Millennials who just graduated college (or are several years into the workforce) who feel like their student loan debt is unmanageable?
    • Since you have the CFP designation, can you explain a little bit about what exactly that designation means and why it may be important to consider when seeking a financial advisor?
    • What can Millennials do TODAY to get their finances on track?

    Financial Focus Website:
    https://www.financialfocusonline.com/

    Don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    YouTube: Face The Fear

    Instagram: Face.The.Fear

    Facebook: Facebook.com/FaceTheFearFW

    Twitter: Face_The_Fear

    Advisory Services offered through Investment Advisors, a Registered Investment Advisor and Division of ProEquities, Inc. Securities offered through ProEquities, Inc., a registered Broker/Dealer and member FINRA/SIPC.  Financial Focus is independent of ProEquities, Inc. Ash Brokerage and its affiliates are not associated with ProEquities.

  • Podcast

    Face The Fear Podcast – Mother’s Day Money Talk ft. Becky Rogers & Robin Schuller

    On this special Mother’s Day episode, we do some girl talk with Becky Rogers and Robin Schuller, two of the coolest moms of Millennials that we know! Becky and Robin share the financial secrets they wish they’d known when they were in their 20s and 30s, as well as the advice they’ve given their Millennial children about managing money. If you want to find out how to slay your financial goals, stay tuned!

    And if you like us, don’t forget to subscribe and leave a review! XOXO

    Face The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

  • Podcast

    Face The Fear Podcast – Matt Erpelding, Estate Planning

    In this episode, we dive into Estate Planning 101 with Matt Erpelding, Director of Advanced Markets at Ash Brokerage. Think that Estate Planning is just something that rich people need to do? FALSE! 

    Here are a few of the questions Matt helps us answer:

    • What is estate planning and why is it important?
    • What are the differences between a trust, will, and estate?
    • What is a Power of Attorney?
    • When should someone start to create an estate plan?
    • How should Millennials start the conversation with their parents and family members about estate planning?
    • Where can someone go for guidance when creating an estate plan or will?

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO

  • Podcast

    Face The Fear Podcast – Chad Tallman, Financial Advisor

    In this episode, we chat with Chad Tallman, Financial Advisor*, about everything from investing, to budgeting, to retirement planning – all from a Millennial point-of-view. Chad debunks some common myths about financial advisors and provides tips for finding the right advisor who will best meet your needs. 

    Here are a few of the questions uncover in this episode:

    • How does someone start investing? 
    • What does “risk tolerance” mean?
    • Why is it important for Millennials to have a financial advisor and to develop a financial plan?
    • What does a holistic financial plan look like for a Millennial?
    • What questions should someone ask a financial advisor to make sure they are the right fit for them?
    • What is one thing you wish you know about finances when you were in your early 20s?

    Chad’s LinkedIn: https://www.linkedin.com/in/chadtallman/

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO

    *(Securities offered through Sigma Financial Corporation, Member FINRA/SIPC. Investment Advisory Services offered through Sigma Planning Corporation, A Registered Investment Advisor. CLN Financial is independent of Sigma Financial Corporation and Sigma Planning)

  • Real Estate,  Videos

    First Time Home Buyer? What You NEED To Know!

    This week, the DeVisser Real Estate Group is our special guest on Face The Fear! Brendin DeVisser, a Millennial real estate agent, answers some of your most common questions about the home-buying process. Don’t forget to like, subscribe, and leave a comment! The DeVisser Group with Five Star Lakeshore is a hardworking team of real estate agents in West Michigan who work hard to inform and educate people on the home buying process, especially when it’s their first time buying a home! From credit scores to pre-approval, we can help you better understand these big transactions that can change your life. With helpful guidance and preparation, you’re on your way to owning your own property! If you have any questions, you can find us on social media (links below) or give us a call!

    DeVisser Group:

    Website: http://brendin.seewestmichiganhomes.com

    Facebook: https://www.facebook.com/brendinfives…

    Instagram: https://www.instagram.com/bd5starreal…

    Twitter: https://twitter.com/bdevissfivestar?l…

    LinkedIn: https://www.linkedin.com/in/brendin-d…

    Snapchat: @bdvrealestate

  • Podcast

    Face The Fear Podcast – Randy Kitzmiller, Social Security

    In this episode, we sit down with Randy Kitzmiller, Social Security Advisor and Retirement Income Consultant, to discuss the basics of Social Security: what it is, how it works, and how it may change in the future. (SPOILER ALERT: It’s not going away! *Phew*) Join us as we dive into Social Security and how it will affect Millennials’ retirement in the future.

    Here are the links Randy mentioned in the podcast:

    Social Security Website: https://www.ssa.gov

    National Social Security Advisers Website: https://www.nationalsocialsecurityassociation.comFace The Fear Website: https://www.facethefearfw.com

    Contact Us: facethefearfw@gmail.com

    Don’t forget to subscribe and leave a review! XOXO

  • Retirement Planning,  The Market: 101

    403B

    In the article that Heidi wrote, we learned about what a 401(k) plan is and how it works. So, what is a 403(b) plan and who is eligible for one?

    A 403(b) plan is a type of retirement plan for tax exempt organizations, specific employees of public schools (teachers, school administrator, professors), certain ministers, nurses, doctors, or librarians. A 403(b)-retirement plan is like a 401(k) in how it is funded through employee contributions. There are three types of accounts for 403(b) plans: annuity contracts with insurance companies, custodial accounts made of mutual funds – called a 403(b)(7), and retirement income accounts for church employees, typically invested in mutual funds and annuities – called a 403(b)(9). An employee usually can choose among several investments to build his or her portfolio, and design the account based on risk tolerance, such as conservative, balanced or aggressive. (As discussed in the podcast with Erin Martin, make sure to check the fees when choosing where to direct your funds.)

    Like a 401(k) plan, your employer may choose to do a matching program. For instance, this means that if you put in 3 percent of your salary into a 403(b), your company could put in the same amount if they do 100% matching. Other companies may do a 50% matching rate. This means that if you put in 6%, they will match up to 3%. (Free money!!) Make sure to check with your HR department on if and how your company matching program works when setting up your 403(b) so that you can take full advantage of the program

    Like a 401(k), a 403(b) has a contribution threshold. For the year of 2019 the contribution amount is: $19,000. If you are age 50 and older, you can contribute an additional $6,000 a year. Also,  if permitted by the employer, a 403(b) plan may allow for an additional catch-up if an employee has worked for fifteen years or more. You may be able to stack these additional contributions, although there are limits and it is a bit confusing, which is why it is important to seek the advice of a financial advisor to navigate these additional contributions.

    Another way that a 403(b) plan is like a 401(k) is that you will be penalized if you withdraw funds before the age of 59 ½ at a rate of 10 percent. (Yikes!)

    One caveat is that there are certain circumstances that funds can be withdrawn without penalty such as separating from an employer when a person reaches age 55, a qualified medical expense, death of the employee or disability.

    Phew!!

    So, what happens if you change employers?  Well, potentially there are four possibilities: roll the funds into an IRA, keep in the current plan, transfer to a new employer plan or cash out the account. Not all of these options may be available to you, so this is where speaking with your financial advisor and human resources department before leaving your current employer is very important.

    As a reminder: I am not a financial professional and urge you to seek the advice of a financial advisor when making your own financial decisions.

    Until next time, face your financial fear! 😉

    Written By: Nicole Ellsworth (@lacelemonslove)

    Contact Us: facethefearfw@gmail.com