Jump-start Your Life with Your Income Tax Refund

There are several ways to jump start your life using money from your income tax return. Here are just a few of them.

Fix your credit.

Tax season time! Want to improve your credit while doing your taxes? It can be done. Fix your credit using your tax refund. Start off 2020 on the right financial foot by getting your credit score here and let us see what we can do to improve your scores.

This is the year to not just receive a good refund, but qualify for the house you want, dream car, or apply for that Travel Credit Card you’ve always wanted.

Not by paying off debts with the money but using the money to strategically repair all items on your credit report and update your information and have derogatory items removed.

Existing Tax Clients who become new credit repair clients will receive $100 off their credit repair.

Click here to get started today.

Get your 3-bureau credit report at Identity IQ, so that you can monitor your reports.

Start your business.

You’ve been saying to yourself, year after year, if only you had the money to start your own business, and with all the new tax law changes since tax year 2018, it is becoming more important that you start now.

With your refund, you can get your articles of incorporation completed, pay the associated fees and register your business with your state, all of which his deductible from your income on your tax return.

You will have ample money to open a bank account and deposit half of the rest of your refund to start running your own business that has tremendous effect on your tax bracket and how much you pay in taxes every year.

Click here to get started today.

Pay your life insurance premiums.

Use your refund to pay your insurance premium every year vice paying monthly which will save you money and pay interest into your future.

Example:

Product: Whole Life Insurance
Valued Client Base Face Amount: $1,000,000
Female 24 Verified Standard Non-Tobacco Initial Premium: $476.96 Monthly (EFT)
Riders: ABR Initial Dividend Option: Internal Paid-Up Insurance
State: Maryland

Your yearly cost will be higher if you choose to pay premiums more frequently than annually. For example, the additional amount you will pay in the first year is as follows:

Premium Frequency	Number of payments per year	Amount of each Contract Premium payment	Total Contract Premium per year	Amount you will pay each year in addition to the Annual Contract Premium
Annual	1	5420	5420	0.00
Semi-Annual	2	2764.20	5528.40	108.40
Quarterly	4	1409.20	5636.80	218.80
Monthly (EFT/Group Bill)	12	476.96	5723.52	303.52

These amounts do not include any Excess Premium, Lump Sum amounts, or 1035 exchanges. Additional amounts will be due in future years if premiums are paid more frequently than annually and may vary from the above example.

Watch for more information on how to make the most of your tax return this year and really get ahead and stay ahead into the future.

Dates You Need to Know for Tax Season 2019

For a lot of people, anticipating tax season and their inevitable tax return feels like the invisible holiday between New Year’s and Valentine’s Day. It’s hard to get properly excited for something without knowing exactly when it’s happening, however. Fortunately, we can finally shed some light on that and help you prepare for the weeks to come.

Officially, the IRS will begin accepting and processing both paper and electronic 2019 tax returns for individual filers on Monday January 27, 2020. IRS Commissioner Chuck Rettig has spoken up to help ease some of the tension you may feel about filing this year, saying, “As we enter the filing season, taxpayers should know that the dedicated workforce of the IRS stands ready to help. We encourage taxpayers to plan ahead and use the tools and information available on IRS.gov. The IRS and the nation’s tax community are committed to making this another smooth filing season.”

Likewise, Unbreakable Tax Service is here to help navigate you through these coming weeks and provide a sense of purpose and direction towards your financial goals. This year’s due date from the IRS is April 15, 2020. Although there is plenty of time between then and now it’s important to plan ahead. Don’t wait until the last moment to schedule an appointment with us or another tax professional service.

And for you early birds, here’s a few tips on how to stay ahead of the curve this tax season. Most tax professionals – us included – are happy to file claims and accept tax returns before January 27, 2020. However, even tax returns filed early will still have to wait until the 27th to be processed by the IRS. If you’re one of the many that’s interested in getting the fastest refund possible your best bet for getting your tax return ASAP is to file electronically and choose direct deposit. 

We’ll continue to keep you updated as the season progresses, and if you want to stay informed and be notified when we post new blog updates, feel free to subscribe to our email marketing service.

What’s New for 2018 Tax Returns

Listen to us discuss this topic on the Digital Digest https://anchor.fm/thedigitaldigest/episodes/Bonus-Episode–More-Money-e34c7b

The tax changes for 2018 have been some of the most significant changes that I have seen my 25 years of tax preparation. I have worked tirelessly to maximize the refunds of my clients using some of the tax laws to their advantage. And now those laws have changed.

The Standard Deduction doubles.

Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax is applied. Taxpayers may choose either itemized deductions or the standard deduction, but usually choose whichever results in the lesser amount of tax payable. The standard deduction is available to US citizens and aliens who are resident for tax purposes and who are individuals, married persons, and heads of household. The standard deduction is based on filing status and typically increases each year. It is not available to nonresident aliens residing in the United States. Additional amounts are available for persons who are blind and/or are at least 65 years of age.

Yes, the standard deduction has roughly doubled for all filers, but the valuable personal exemption has been eliminated. For example, a single filer would have been entitled to a $6,500 standard deduction and a $4,150 personal exemption in 2018, for a total of $10,650 in income exclusions. Under the new tax plan, they would just get a $12,000 standard deduction. Is it better? Yes. But it’s not really “doubled.”

I held many tax training classes in which I taught extensively about itemized deductions, to help move my clients from the lower standard deduction into the itemized deductions arena to decrease the amount of income that they were taxed on, but for the first time in 20 years the standard deductions for the 2018 tax year has increased to $12,000 for single and married filing separate filers, $18,000 for heads of households, and $24,000 for joint filers. It’s twice the amount of the 2017 standard deductions which were $6,350 for single and married filing separately, $9,350 for the head of household and $12,700 for joint filers. This will make it harder for you to itemize your deductions.

• Miscellaneous itemized deductions are eliminated.

In prior years, you could deduct your itemized deductions such as unreimbursed job expenses, tax preparation fees, and other expenses as long as they exceed 2% of your adjusted gross income. In 2019, you cannot deduct expenses such as:

• Moving expenses (excluding members of the armed forces)
• Travel expenses
• Meal expenses
• Professional and union dues
• Business liability insurance premiums
• Depreciation in mandatory items such as computer or phone usage
• Employee education expenses
• Home office expenses
• Job-seeking expenses
• Supplies and uniforms
• Investment fees
• Tax preparation fees
• Hobby expenses

What does this mean for you?

For those, who’s only way to increase their deductions to use the itemized deduction was by claiming those expenses in prior years, these expenses are no longer an option. However, homeowners and those who give charitable contributions in the form of tithes and offerings to churches at a rate of 10% of their income, along with other charitable donations and those who donate clothes, furniture, etc., to thrift stores and other charitable organizations are still able to move beyond the standard deduction into using the itemized deduction.

For example:

Let’s take a person filing head of household who’s income is $75000.

In 2017 the standard deduction for this person was $9350. If they claimed $7500 in cash charitable contributions (10%) and also donated items to thrift stores in the amount of $3500, they were able to surpass the standard deduction amount by $1650 and therefore would be able to use the itemize deduction.

This same person in 2018, with the same factors will only have $11000 in deductions which is $7000 lower than the new standard deduction of $18000 and they would not be able to itemize and have to take the standard deduction.

The Child Tax Credit (CTC) increases until 2025.

For qualifying children under 17, the CTC doubles from $1,000 to $2,000. Your dependent must also have a social security number for this credit. Moreover, the TCJA combines the Additional Child Tax Credit (ACTC) with the CTC. You can then receive a refundable credit of up to $1,400 after removing your tax.

A new dependent credit is here.

If you want to claim a non-dependent, (meaning someone who is not a qualifying child under age 17) you can do so and receive $500 for this credit. The non-dependent must be either a full-time student or disabled.

State and Local Taxes (SALT) deduction have a cap of $10,000.

Beforehand, there was not a limit in place for your SALT deduction but now, there will be a noticeable difference for taxpayers with greater amounts of state and local taxes.

It’s also recommended that you complete a new W-4 in place of this new tax law.

 No more alimony deductions.

You can no longer deduct your alimony payments on your tax return. This means that divorcees who make alimony payments cannot deduct that amount on their federal taxes. This applies to divorces after December 31, 2018.

Mortgage interest deduction receives a cap of $750,000.

Prior to this, taxpayers could deduct up to $1 million in mortgage interest whereas now, it’s cut by 25%. On top of that, the new cap of $750,000 applies to residences purchased after December 15, 2017.

The Home Equity Interest Deduction disappears.

For 2018-2025, the interest you pay on home equity loans and lines of credit are no longer available. However, the IRS states that they are still deductible as long as they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.

For example, you cannot deduct the use of the loan for credit card debt and living expenses. The loan must also be a qualified residence such as a homeowners’ main or second home and not exceed the cost of the home.

Here’s a reminder of the income tax brackets for 2018:

There are still seven tax brackets, and the seven marginal tax rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — remain unchanged. However, the income ranges for each bracket have been adjusted for inflation. So with that in mind, here’s a guide to the 2019 tax brackets for the four major tax filing statuses:

Tax Rate	Single	Married Jointly	Head of Household	Married Separately
10%	$0-$9,700	$0-$19,400	$0-$13,850	$0-$9,700
12%	$9,701-$39,475	$19,401-$78,950	$13,851-$52,850	$9,701-$39,475
22%	$39,476-$84,200	$78,951-$168,400	$52,851-$84,200	$39,476-$84,200
24%	$84,201-$160,725	$168,401-$321,450	$84,201-$160,700	$84,201-$160,725
32%	$160,726-$204,100	$321,451-$408,200	$160,701-$204,100	$160,726-$204,100
35%	$204,101-$510,300	$408,201-$612,350	$204,101-$510,300	$204,101-$306,175
37%	Over $510,300	Over $612,350	Over $510,300	Over $306,175

January 28 was the start of the tax season!

You can make an appointment to file your tax return at http://www.unbreakableenterprises.com/make-an-appointment.html

Your Money is Your Business

Its Time For You To Do Your Job As CEO

Listen to us discuss this topic on The Digital Digest https://anchor.fm/thedigitaldigest/episodes/Money-Matters-e2vt8r/a-a93e3g

Many of us believe working for someone else in a small or major company or serving a tenure in local or federal government is the closest that we will ever be involved in business. That one thought has derailed us from paying attention to and managing the most important business that only we are in charge of, the business of our money.

Money is the permeating topic of almost every moment of everyday. For example, just to start the day with a cup of coffee, most of us think about the cost of and action of purchasing it. Money is often said to make the world go around. With all this attention to money, one has to wonder, how are so many people in need of financial help. Salaries are higher than they have ever been, but then so are the prices of milk, bread and eggs, and more of us are stressed out about our money and living from paycheck to paycheck. More of us are questioning the rat race. Will it ever be fulfilling? Will retirement ever be realized? How long will I have to work before I can retire? Will my retirement be enough to make it for the rest of the years of my life? What will my quality of life be like as I age?

The answers to these questions are often left to chance or are at the direction of someone else. Money can be a touchy subject to talk about and those talks are often filled with fear, misinformation and secrecy. Often when the bank accounts are empty, conversing about money or even simply reviewing our money habits can make us feel as if we are being exposed, like our lack of care for our money as evidenced by our current situation makes us feel like a failure. No one wants to feel that way, thus dialogue about money is either non-existent or short and sweet bits of palatable pieces that we can digest slowly.

In this day and time, slow and steady progress is not going to win the money race. We need to become the aggressive Chief Executive Officer, whose primary function is to grow the company, keep the accounting in the black, and to keep more of the profits, of course to invest and make more money. In order to do so, especially with a company that has been ignored and misguided, the CEO must take a hard look at all of the data available that created the issues in the company. He or she must look at the company income, how it is acquired, and how much is made per minute, per hour, per week, per month. The CEO must also be brave enough to examine the spending history of the company, looking deep into the necessary expenses and unnecessary expenditures. Bravery is required because identifying expenses after the fact can cause one to feel guilty; to have buyers remorse, which can cause us to be angry with ourselves for our choices with our money.

It can be a daunting task, but the answers to our issues with money, is in our past behavior with money. In order to get on track, we have to uncover what I like to call money leaks that drip dollars from our pockets on a daily basis, that keeps us from the things that we say we want to have, but are unable to afford. Like a plumber, who often may have to bust open a wall to get to the pipe that is causing the leak, we too have to take the time to take a sledge hammer to our financial life to patch it up right and stop the leaking.

What Are Money Leaks?

Many money leaks are very similar to those nagging plumbing leaks that are not discovered until the ceiling has fallen through to the floor. The money that is leaking is often unnoticeable and often aren’t even considered a leak until it is actually examined and a calculator is taken to the amounts to discover how much the total leak is costing over periods of time.

For example, a harmless habit of a cup of coffee a day at one of the famous coffee shops can easily add up to almost $1000 a year or more. Another example is a the habit of smoking, at nearly $10 a pack in most states, this leak can cost over $3500 annually. One more example is the relaxing after work drink that can easily add up to $2500 or more, especially if you buy for others. Just with these three examples, a person with all three of these leaks is losing $7000 to $10000 annually on simple, harmless habits that we deem necessary and claim like a right or honor because we make our own money to do with what we please. Yet this same person may be the one constantly telling friends and family that he or she cannot afford a vacation, or to upgrade their appliances, or to save money for their future. Can you see where this is going?

More often then not, when urging someone to take the time to perform this CEO review of their money, I am faced with the arguments of freedom of choice to do as I will with my money or not wanting to have to give up things I love to do, or simply, its too much to think about, I’ll get depressed. All of these responses seem to send the person deeper and deeper into the spiral of not having enough, yet continuously seeking temporary rewards that are still considered money leaks and further away from looking into and actually solving the problem.

Fortunately, the great thing is that we can begin to take the time to manage our money any day and see the difference that investing that time can make pretty quickly.

Small Change

“It’s the little things that grow into big things,” is a saying that most of us have heard many times and in quite a few important areas of our lives, the statement is often found to be undeniably true. If we continue to ignore the little things eventually we have bigger things to face.

Here are some quick tips that are designed to empower you as CEO of your money

• Record ALL cash/debit/automatic transactions everyday
• Set aside a specific hour, day of the week to organize, categorize and total up all of your expenses for each week.
• Pay ALL monthly obligations ON TIME (if possible) to avoid late fees and penalties.
• Ask for discounts with all the companies you do repeated business with.

Another option is to ( http://www.unbreakableenterprises.com ) set an appointment with me so I can help you get a clear picture of what you can do to find your money leaks and create extra money in your financial life without getting a part-time job or investing any time in some kind of money making scheme.

The Tale of Two Brothers

When Money Talks

The first day of July 2015, two brothers, Raymond and Ernest came to me wanting to see an increase in their credit scores so they could get loans for their personal lives and their businesses. The brothers scores were almost identical, in the low 500’s, both less than 520.

 Raymond, the brother that was more active, with a job, children, some credit history and quite a few credit mistakes started out with a 514, a publicly recorded Bankruptcy, several collections, and some charge-offs on his credit report, so it’s pretty easy to understand his low score.

Ernest, however, preferred to use cash for his entire life and therefore had no previous credit, and with just 2 inquiries on his report because he applied for some type of credit so his low score of 508 isn’t as easy to understand, except to repeat the old adage of “no credit is just as bad as having bad credit”. After consulting with…

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