United Eastern Consultants

11/17/2021

06/11/2021

IRS Corner:😟😟😟😟

Here’s how saying “I do” can affect a couples tax situation:

The arrival of summer is also the start of wedding season. Marriage changes many things and taxes is one of them. Newlyweds should know how tying the knot can affect their tax situation.
Here’s a tax checklist for newly married couples:
Name and address changes
• Name. When a name changes through marriage, it is important to report that change to the Social Security Administration. The name on a person’s tax return must match what is on file at the SSA. If it doesn’t, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by calling 800-772-1213 or at a local SSA office.
• Address. If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, people should send the IRS Form 8822,Change of Address. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office.
Withholding
• After getting married, couples should consider changing their withholding. Newly married couples must give their employers a new Form W-4, Employee’s Withholding Allowance within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax. They can use the Tax Withholding Estimator on IRS.gov to help complete a new Form W-4. Taxpayers should review Publication 505,Tax Withholding and Estimated Tax for more information.
Filing status
• Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it’s best to figure the tax both ways to find out which works best. Remember, if a couple is married as of December 31, the law says they’re married for the whole year for tax purposes.

06/04/2021

Health Care Corner:🤓🤓🤓
Health Savings Accounts (HSA) are great things to have when it comes to paying healthcare expenses. You can build up your HSA with pre-tax contributions and use it for qualified health expenses. But, did you know that by enrolling in Medicare, you can no longer make contributions to your HSA account?

For individuals with qualified employer health insurance who may qualify to delay Medicare enrollment past age 65, it’s especially important to understand how getting Medicare coverage impacts your HSA.

06/04/2021

Annuity Corner:
Annuity products could emerge as saviors in helping to rescue retirees from the “tsunami” of financial insecurity “washing upon our shores.”
” the Securing a Strong Retirement Act of 2020, commonly called Secure Act 2.0, which would boost the required minimum distribution age from 72 to 75.
the Secure Act 2.0, introduced last year, expands auto-enrollment in 401(k) plans, 403(b) and Simple plans to automatically enroll participants in plans “upon becoming eligible.”
Indeed, in 2024 more Americans will turn 65 than at any other point in history, a milestone requiring urgent attention and collective action.
Partial annuitization, short-term annuities, trial annuities and annuities as a default option in 401(k) plans are strategies to provide Americans with protected income in retirement to add to Social Security benefits.
You can give yourself additional protected income on top of Social Security by partially annuitizing some of your assets. One idea is to bridge the gap with a short-term annuity that would get you through the few years till you can claim at your full retirement age or at age 70 [for the maximum benefit].

05/13/2021

Did you know that small business employers now have more ways to contribute to their employees’ health care costs?
The individual coverage Health Reimbursement Arrangement (HRA) is an alternative to offering a traditional group health plan, such as Small Business Health Options Program (SHOP) coverage, to your employees. It’s a specific account-based health plan that allows employers to provide defined non-taxed reimbursements to employees for qualified medical expenses, including monthly premiums and out-of-pocket costs, like copayments and deductibles. Employees must be enrolled in individual market health insurance coverage to use the funds.

05/13/2021

Taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor, and disability benefits. They don't include supplemental security income payments, which aren't taxable.
The portion of benefits that are taxable depends on the taxpayer's income and filing status.
To find out if their benefits are taxable, taxpayers should take half of the Social Security money they collected during the year and add it to their other income. Other income includes pensions, wages, interest, dividends, and capital gains.
• If they are single and that total comes to more than $25,000, then part of their Social Security benefits may be taxable.
• If they are married filing jointly, they should take half of their Social Security, plus half of their spouse's Social Security, and add that to all their combined income. If that total is more than $32,000, then part of their Social Security may be taxable.