Taxes

The IRS and Treasury Department announced the deadline for filing individual taxes for tax year 2020 has been extended to May 17th, 2021.

For many, the 2020 tax season will likely look quite different. As we enter that time in the calendar year when we start thinking about tax-related topics, it becomes even more important to start organizing early.

On September 1, 2020, the President’s office gave an executive order that would delay certain payroll taxes until 2021. You may or may not have been aware of this payroll tax holiday and may even be asking, what does it mean? Some of you may have already seen this in your paycheck in the form of more money but how does it work?

 

When it comes to financial planning there is no one-size-fits-all option. As individuals, we all have different goals and objectives based on things like kids, marriage, work, age, and a host of other variables. When sitting down with your tax and/or financial advisor, it’s important to understand your asset allocation and what types of tax-deferred accounts you may have. If there is no tax due on income earned in the account, the account is considered tax deferred.

 

This might be one of your least favorite subjects – the crossover between financial planning and taxes. At a time when many people are giving attention to their taxes, we are often giving clients information about tax implications. While we are not CPA’s, tax accountants or attorneys at North Main Financial, it is important from a planning standpoint to take into consideration what the tax implications may be for our clients.

When you think about estate planning you probably think about legacy-style families like the Kennedy’s or people who are “wealthy”. However, each of us have an estate according to the Internal Revenue Service (IRS) and each state we live in has a different set of regulations. No matter your worth, we recommend having an estate strategy to align with your future wishes after you pass away. This is one of the things we focus on at North Main Financial, helping our clients to prioritize their goals and then helping them coordinate a plan for how to ensure their goals are met.

 

Hints of Spring are starting to pop up and March Madness is just around the corner and all this can only mean one thing…income tax season is upon us. Whether you are receiving a W2 or 1099 or filling out a Schedule C or a Schedule A, there is a flurry of forms that you are receiving, sending, filling out, and signing for the IRS. If you are anticipating a refund you are probably moving forward with that quickly, and if you’re anticipating you owe money…you may not be moving quite as quickly. Of course, all the while being mindful of that April 15th due date.

 

The end of the calendar year brings with it some requirements from a financial planning standpoint that are important to remember. At North Main Financial, we sit with our clients between the holidays to take care of things from a planning standpoint. Whether it be for charitable reasons, tax reasons or other calendar dependent kinds of things, it’s to review your current financial space and plan ahead.