Day: May 1, 2016

Financial Planning Guide

Tax E Man
Tax Consultation, Preparation, Representation

The Tax E Man Blog, along with our website www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Baldwin NY Tax Preparation service Pat Tax Inc. and Patrick White, Enrolled Agent .  Please feel free to contact us with any questions or  concerns.

 

Personal Financial Planning

Budgeting-Steps to manage income and expenses include the following.

  • Identify monthly outflows as living expenses, savings, and discretionary.
  • Eliminate unnecessary expenses from the discretionary category. If further cuts need to be made, reduce living expenses by obtaining a less expensive auto or home. Reduce savings as a last resort. Track income and expenses monthly and review every six months.
  • Establish an emergency fund equal to six months of income saved.
  • Save on private mortgage insurance by putting at least 20% down on a home  mortgage

 

Read Financial Planning Guide Here

 

Education Funding-Several tax advantages are available to help save for education expenses.

  • Savings bond interest may be tax free if used for qualified education expenses.
  • Coverdell education savings accounts (ESAs) provide tax-deferred growth and tax-free distributions for qualified education expenses.
  • Qualified Tuition Programs (529 plans) provide tax free distributions for qualified tuition expenses.
  • A gift of low-basis stock allows the individual’s child to sell the stock and use the proceeds to fund education expenses. This is beneficial when the individual is
    in a higher tax bracket and the student is in a lower tax bracket.
  • Roth IRAs can be used as a savings vehicle for education purposes. Contributions are removed from a Roth IRA without tax or penalty. Parents and grandparents fund the Roth IRA with the intention of removing the contribution and gifting that amount to the student. If the student does not go to college, or has the costs covered by other means, the contributions can stay in the Roth IRA without concern for tax or penalty
  • .Cash-value life insurance can also be used as a funding mechanism for college expenses.

 

Read Financial Planning Guide Here

 

Any accounting, business or tax advice contained in the Tax E Man Blog or  www.PatTax.net, including attachments, links and enclosures, are not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax related penalties.

If desired, Pat Tax, Inc. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.

The Tax E Man Blog, along with our website www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Pat Tax, Inc. . Please feel free to contact us with any questions or concerns.

 

 

 

 

Begin With The End In Mind-Tax Planning 2016 and Beyond

Tax E Man4
Tax Consultation Preparation and Representation

The Tax E Man Blog, along with our website www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Baldwin NY Tax Preparation service Pat Tax Inc. and Patrick White, Enrolled Agent .  Please feel free to contact us with any questions or  concerns.

“Begin with the End in Mind means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen.”

Steven Covey                                          Habit 2: The 7 Habits of Highly Effective People

 

In educator and successful businessman Dr. Steven Covey’s seminal work on self-empowerment, “The Seven Habits of Highly Effective People”,  he points out in Habit 2 the importance of creating your  Personal Mission Statement. The Mission Statement focuses on what you want to be and do. It is your plan for success. It puts your goals in focus, and moves your ideas into the real world.

The mission of tax planning should serve a similar purpose. Tax planning with your tax professional should reflect short and long term goals of you, your family and/or business. It should serve as a roadmap on reaching your goals based on a firm educational foundation and tools to monitor plan progress. Tools to avoid pitfalls and minimize surprises.

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It was with this in mind that the Tax E Man Blog compiled a category on Tax Planning. Tools and topics include

  1. Financial Planning Guide
  2. College Financial Aid Planning
  3. Saving for College
  4. Moving Out Worksheet
  5. Saving for Retirement
  6. Early Retirement Distributions
  7. Newlywed Tax Tips
  8. Pension Income Planning
  9. Social Security and Medicare
  10. Estate Planning, Wills, Probate, and Transfer of Assets

Pat Tax Inc. and Enrolled Agent Patrick White are available to answer questions or concerns and to help in customizing your Tax Plan. Tax Planning Tool and Topic blogs will appear beginning May 1, 2016 and will remain available under the Tax Planning category.

 

California Coast6-Fisherman's Shot

 

Any accounting, business or tax advice contained in the Tax E Man Blog or  www.PatTax.net, including attachments, links and enclosures, are not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax related penalties.

If desired, Pat Tax, Inc. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.

The Tax E Man Blog, along with our website http://www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Pat Tax, Inc. . Please feel free to contact us with any questions or concerns.