Category Archives: Marriage & Divorce
6 Tax Tips for New Grads – Motley Fool
Graduating from college often means lots of life changes. Whether you’re moving to a new place, starting a new job, or finally starting to pay back student loans, many of those changes are going to affect your tax obligations.
If you’ve had summer jobs while in school, chances are good you’ve filed a tax return before. But not every college grad has worked enough to file with the IRS in the past. And even if you’ve already filed a return to report income, the process may be different now that you’re a full-fledged adult with a degree.
To make sure you’re prepared for the new tax issues you’re likely to face, follow these six tax tips for new grads:
Image source: Getty Images.
1. Get your withholding right
When you get your first post-graduation job, you’ll need to fill out a W-4 form to let your employer know how much to withhold from your paycheck.
It’s important you’re accurate in completing this form. You don’t want too little taken out of your paycheck because you could get hit with penalties if you don’t pay enough during the year. But you also don’t want too much withheld — even if you’re excited to get a big tax refund — because then you end up giving the IRS an interest-free loan and tying up your money.
There are instructions on the W-4 to help you figure out how many allowances you should claim. Read them carefully, especially if any special circumstances apply to you — like working multiple jobs. And you can use the online IRS withholding calculator to simplify the process of determining if your employer is taking enough out of your paycheck for the IRS.
2. Understand your obligations to the IRS
The U.S. tax system is pay-as-you-go, so you’re expected to pay your taxes as you earn money. If you work as an employee, your employer takes care of withholding money from your check and sending it to the IRS, so you should be in good shape as long as you follow the first tip and get your withholding right.
But lots of new grads work as independent contractors rather than employees — or have side gigs where they earn extra income as a contractor. If you do either of these, you may have to send in quarterly estimated tax payments to make sure you’re meeting your obligation to the IRS as you earn.
You’re expected to pay estimated tax payments if you’re likely to owe the IRS at least $1,000 when you file your return. You’ll need to calculate your taxable income minus deductions and credits to determine if you’re likely to owe the IRS at least $1,000. If you’re not sure, it may be best to err on the side of caution and just send in four payments per year by April 15, June 15, Sept. 15, and Jan. 15.
3. Don’t forget to claim your student-loan interest deduction
If you have student loan debt, you should be eligible to deduct up to $2,500 of the interest paid on your loan.
You won’t have to itemize to claim this deduction. But you do need to be legally responsible for paying back the loan, you can’t be a dependent on anyone else’s tax return, and you can’t file your taxes as married filing separately.
There’s also an income limit to claiming the student-loan interest deduction. The IRS has a tool to help you determine if you’re eligible for this deduction. If you are, you’ll receive a statement specifying the amount of interest you can deduct. Keep this paperwork, and claim the deduction when you file your taxes.
4. Start taking tax deductions for retirement right now
You can also get another important tax deduction to reduce what you pay — while setting yourself up for a secure future. This deduction comes from investing in retirement accounts.
If you have access to a 401(k) at work, you can contribute and take a tax deduction for up to $19,000 in 2019. Regardless of whether you have a workplace 401(k) or not, you could also contribute up to $6,000 to an IRA and deduct the amount you contribute. Later in your career, those amounts go up, with those 50 or older getting to save $25,000 in a 401(k) and $7,000 in an IRA for 2019. While there are income limits for IRA contributions if you or your spouse is covered by a retirement plan at work, you can make 401(k) contributions no matter how much you earn.
Deductions for contributions to retirement plans can be taken even if you don’t itemize on your taxes. And they can be worth a lot. If you’re in the 22% tax bracket and you contribute $6,000 to max out your IRA, you’ll save $1,320 on your federal tax bill. And if you’re a new grad and make this $6,000 contribution at age 21, that $6,000 will be worth more than $118,000 by age 65, assuming a 7% annual rate of return.
5. Keep your tax paperwork together
As tax time approaches, you’ll probably get lots of tax paperwork in the mail. This can include a 1099 from each company you work for as an independent contractor, as well as a W-2 from your employer, and statements showing your student loan interest or retirement plan contributions.
All this paperwork can become overwhelming, but you’ll need to keep it together so you can do your taxes easily — and to prove your earnings and eligibility for deductions in case you’re audited. If you’re claiming any other deductions or credits, such as for business expenses as a self-employed worker, be sure to keep all the documents related to these deductions as well.
6. Find a good tax filing program
A good software program will help you file your taxes more easily.
Most new grads don’t need to hire an accountant because their taxes aren’t that complicated. But tax filing programs can make filing much simpler because good programs walk you through completing your forms — and they ask you questions in plain language to help you find deductions and credits to claim.
In most cases, if your income is $66,000 or less, you can use tax-filing software for free to file your state return, and sometimes your federal return. Read reviews of programs and consider sampling a few before you decide which software to use to file your taxes. It’s easiest not to switch programs once you start using them — the program will store your information from year to year, making filing easier in the future. So try to start with software you’ll want to stick with for the long haul.
Getting your taxes right makes your financial life easier
It’s important that you’re in full compliance with the IRS — and that you do everything you can to save on taxes so you don’t send the government any more of your hard-earned money than necessary. By following these tips, you’ll be ready for your first tax season as a new grad.
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This expert wedding photographer has 8 top tips for a picture-perfect day – Her.ie
Brought to you by Dermot Culhane Photography.
So one of the most important elements of a wedding, is capturing it. We want to ensure we have beautiful images to coo over for weeks (and decades) after the big day.
So we thought getting in touch with an industry professional would be a super idea. Not just any however, but a multi-award-winning photographer (he won the IPPVA Wedding Documentary Category at the Photographer of the Year Awards 2018 – impressive!). He’s favourite to many celeb couples and has had work commissioned from every part of Ireland, the UK and Europe – helping to build his enviable reputation at home and abroad.
Dermot Culhane – the Limerick based photographer – has 11 years experience under his belt, capturing beautiful images with a reportage eye. Here are just some of his top tips…
Dermot’s style of photography is traditional reportage, meaning capturing the real story, emotion and expressions of the day is central to his work
1. Should I Give My Photographer a Shot List ?
Dermot says;
“By all means give your bridesmaid/groomsman a list of various groups they should round up on the day for those formal family group shots. But when it comes to posed photographs, etcetera, I would definitely not suggest giving a list to your photographer. Pick the right photographer and trust him/her. They will capture all the natural spontaneous moments that make your day different from the rest. That way your images will be unique and not replicas from someone else’s wedding day. Let your photographer capture your story.”
2. Know the Difference Between Quality and Quantity
“Don’t fall for the photographer that’s going to give you ‘everything.’ The disk of images, the parent album, the engagement shoot, and while doing it all for a low price. There’s going to be a cost. The real cost is you’re losing out on so many moments that haven’t been captured. Always emphasise going for quality first.”
3. Meet Your (Potential) Photographer
“Don’t just book a photographer online. Narrow your photographers down to maybe three or four – then call and arrange to meet them. You’re not exactly meeting them to see their work, because you’ve seen that online. You’re meeting them to see who they are and what they’re like. It’s important to build a rapport with them. If you feel comfortable around the photographer when you meet them first, you’re definitely going to feel comfortable on the day.”
4. Should Light Be a Concern When Choosing a Venue?
“If you’re going to pick a venue, pick the venue that speaks to you. Don’t worry about lighting – that’s the photographers job.
If you’re a professional photographer, you should be capable of shooting in all kinds of lighting conditions. In any lighting situation, a photographer should be able to adapt and there should be no worry for the bride and groom.”
5. Have Your Favourite Photographs Put to Print
“Everything is digital now. I won’t say I’m old fashioned at heart, but I think when the dust has settled and you’ve paid for your photographer, it can be a little bit of an anti-climax receiving all your images in digital form.
“It’s really, really special to have an album, and to show family, friends and the generations these images as well.”
6. How Much Coverage? And of What Kind?
Something to think about is the fact that “some photographers will offer coverage up until guests are seated for the meal. They arrive in the morning and they photograph up until five or six o’clock. When the bell is rang, they’re gone. If you don’t have a videographer there’s still a lot left in the day.”
Dermot also explained that if a photographer takes the bride and groom away for two hours (or even more) they’re often missing one of the best parts of the day. He admits much of a photographers best work (in his own experience) is brought about when a bride and groom are relaxed and having fun with family and friends.
“Speeches are an amazing part, for a photographer especially. It’s not just about who has the microphone – to me it’s about the reaction of your guests too. I’m [focusing] on the mic but I’m also looking at the reaction and expression of friends.”
7. Where Should the Bulk of the Budget Go?
“No one can say put most of your budget into that, or this. A couple that is into their photography and want something that’s going to last forever will likely put a lot of money into it. Another couple might put their money into the band.
“Of course, I’m always going to say spend wisely with your photographs – I am a photographer. But it’s all about what you really want on your day.”
8. Full-time Professional Photographer Insurance
“If someone has a fall over the photographers bag – god forbid – insurance is just peace of mind for everyone. There should be a contract signed at the beginning so that a couple knows this photographer is a full-time professional, and it’s all good.”
Brought to you by Dermot Culhane Photography.
When you're not Jeff Bezos: Tips for most financially painless divorce – Fox Business
Announcing his coming divorce this week, Amazon CEO and founder Jeff Bezos just missed the cut-off for the favorable federal tax classification of alimony.
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And if the couple files for divorce in Washington state, where they own a residence and Amazon is headquartered, everything acquired during the marriage is considered community property and subject to a 50/50 division. (There are nine other community property states: Alaska (with opt-in), Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas and Wisconsin.)
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While what could be the most expensive divorce of all time is interesting, what can the average person do to protect themselves financially from divorce disaster? Here are things to keep in mind and some practical tips.
Retirement accounts: Who gets what
When spouses divorce, the court will usually separate retirement accounts, including the 401(k), 403(b), TSP, Simple, and SEP, among others, through a Qualified Domestic Relations Order, QDRO for short. If you are in a community property state, this means an even 50/50 division. If you are in an equitable distribution state, either the judge will decide the split (if your case is contested) or you can negotiate the amount (if you are agreeing to a distribution through a marital settlement agreement).
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If you have the flexibility of agreeing on the division, remember to incorporate the tax considerations into your calculations. In other words, don’t agree to take all the retirement account (which is 100% taxable as ordinary income as you take withdrawals) and give your soon-to-be ex the primary residence (where all gains – up to $250,000 for a single taxpayer and $500,000 if you sell the house while still married – are excluded from capital gains taxes).
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Use a premarital agreement
It is reported that the Bezos, who married young and without major financial means, do not have one. Even though they can be a romance killer, a premarital agreement trumps the division of property your home state follows because it is a private contractual agreement that both parties agree to ahead of any problems. While some lawyers may still try to circumvent its terms, especially where major assets exist, a properly drafted agreement is difficult to overcome.
Keep separate property separate
Even if you do not have a premarital agreement, if you come to the marriage with sufficiently more assets or if you inherit assets or receive gifts during the marriage, keep these assets separate and apart from any joint marital accounts. This way they can retain their character as your separate property, not subject to marital division.
Keep a record of debts paid or down payments made
If you plan to use your individual assets to pay off your future spouse’s student loans or put the down payment down on your joint home, keep a record of those funds and agree that those funds remain your separate property.
About Rebecca Walser Rebecca Walser is a tax attorney, a certified financial planner, and the author of Wealth Unbroken, who specializes in the strategic planning of maximizing lifetime wealth while minimizing tax through her practice, Walser Wealth Management (www.walserwealth.com). She earned her juris doctor degree from the University of Florida and her Master of Law degree in taxation from New York University. She is a frequent national media contributor.
