Edgewater Tax Group

The Greatest Time of Year

Joe — Mon, 24 Mar 2014 02:17:47 +0000

St. Patrick’s Day begins the most exciting 4 week period of the entire year! Ever!
To start ‐ my Birthday is March 18th.
(In lieu of gifts or treats, make donations to Dubois County Humane Society at http://www.duboiscountyhumane.org/ or your local Humane Society)

The 4 weeks beginning with St. Patrick’s Day are loaded with March Madness, spring training baseball, Opening Day!!!, The Masters, and April 15th!

Let’s dissect this a bit:
1. March Madness –
a. The tradition, the upsets, the pageantry, the fans! What is not to love about March Madness basketball? If the games alone weren’t good enough, Warren Buffet has fronted $1B…..Billion! For a perfect bracket. I doubt it happens?
2. Baseball –
a. The GMs begin narrowing their team down to the best of the best in hopes to bring home the pennant! The boys of summer are back! I was blessed to have my dad implement baseball to me at an early age as the nuances of the game really develop and instill traits a person will carry for life!
3. The Masters –
a. Aside from hitting an unpredictable moving object (baseball); golf has to be the most difficult sport there is! It’s absolutely amazing watching the Pros at Augusta! I download the Masters app each year and do not miss a swing!

This year – Spending the bulk of my time at the office busy with tax returns I have added an extra monitor to my computer solely dedicated to Spring Training Baseball, NCAA March Madness, and PGA Golf!

I hope you all enjoy the next 4 weeks as much as I do!

Income Tax Projections

Joe — Mon, 24 Mar 2014 02:14:44 +0000

Income tax projections are a tax & financial planning tool that we proactively utilize with our clients in order to have a complete understanding of their tax & financial matters so as to minimize taxes, but also to provide planning in other financial areas. These projections do not stop with us – We work with other advisors you may already have on your team to ensure the best financial situation for you!

Tax planning primarily involves:

1. Reduction of income.

2. Reviewing tax withholding & estimated payments.

3. Increasing deductions and credits.

Tax projections are very beneficial for those:

1. With fluctuating income from year to year (Business Owners, Commission Based Income, Etc…)

2. Who have had a life changing event (Move, Family, Job Change, Etc…)

3. Who have fluctuating and unpredictable investments & gains.

4. Who want to take a proactive approach with their financial situation.

5. With improper wage withholding or estimated payments.

Call us today to begin proactively tackling your tax & financial situation for 2014!

Derek C. Smith, CPA

Affordable Care Act and You

Joe — Mon, 24 Mar 2014 02:04:58 +0000

I want to get down to business with this blog – No I have not read the entire 33,000 page healthcare bill, nor the entire 20,000 pages of rules and regulations associated with the law!

But I do know what you need to know for your 2013 tax return!

What you need to know for 2013:

1. The individual mandate provision and premium tax credit do not affect your 2013 tax return.

2. For some – they could be affected by the additional Medicare tax, the net investment income tax, increased itemized thresholds, and exemption & itemized deduction phase-outs.

a. Net Investment Income Tax –

i. 3.8% additional tax on certain net investment income of individuals, estates, and trusts.

ii. For Married couples, this rate kicks in once Modified Adjusted Gross Income exceeds $250k.

iii. For Single taxpayers, this rate kicks in once Modified Adjusted Gross Income exceeds $200k.

b. Additional Medicare Tax –

i. .9% additional tax on wages, compensation, or self‐employment income exceeding threshold amounts.

ii. For Married couples, this rate kicks in once income exceeds $250k.

iii. For Single taxpayers, this rate kicks in once income exceeds $200k.

Call us today to discuss if this will impact you and to begin 2014 planning!

Derek C. Smith, CPA