Unless you have filed for an extension, tax season is over until next year. Let’s address some concerns you may have had this tax season, and how to plan for an easier time next year.

Were you disorganized?
Many people dump their receipts, deduction confirmations, or expenses summary into a box or folder throughout the year. Come January, you have to sort and total all of these different potential deduction items. A simple solution is to scan everything into folders or use pocket folders labeled for each type of expense.

Did you under withhold?
This is the surprise that no one wants. We are obligated to pay in at least as much as you paid in federal tax your pervious year. Most of us can realize if we have made more in income or through our investments. Quarterly payment of estimated tax will help soften this burden when you file.

Should you have contributed more?
Many people wait until between January – April to make their deductible IRA contributions. Depending on how your year has been due to unforeseen expenses, this may be hard to do. Try adding to your deductible IRA monthly as you pay any other bill. You are paying yourself and reducing your tax bill at the same time.

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Who doesn’t love a bargain? Finding a great pair of shoes or item of clothing on sale is always great. Groupon’s for everything from dinner to a concert are constantly being used to get a deal. So why don’t we like it when our investments are on sale?
2016 has not been positive for the markets as of yet. We still have a lot of year ahead of us. Most investors are about to receive their first quart reports and will not be happy with their numbers. We find losing $100 much more painful than the joy at a $100 gain. Why is that?
If you are a long term investor, down markets allow you to buy more shares because everything is on sale. More shares generally will equal more income from dividends and capital gains in retirement.
If you regularly contribute to your investments through your 401k, or a similar plan, rejoice!
While you are accumulating, you want your investments to be on sale.

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1959-April-News-Print-NancyHecht

How Much things cost in 1959
Yearly Inflation Rate USA 1.01%
Yearly Inflation Rate UK 0.9%
Average Cost of new house $12,400.00 Average Yearly Wages $5,010.00 Cost of a gallon of Gas 25 cents Average Cost of a new car $2,200.00 Movie Ticket $1.00 Loaf of Bread 20 cents Kodak Movie camera $67.50 Ladies Stockings $1.00
Below are some Prices for UK guides in Pounds Sterling
Average House Price 2,410 Austin 7 ( Mini ) 500

newspaper from:takingyoubackintime.com

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I know plenty of people like to file their tax return electronically. It is so easy to do. Electronic filing has been a boon to legitimate taxpayers; it has also been a boon to identity thieves. In 2010 there were 500,000 fraudulent returns filed, by 2013 that number had ballooned to over 2 million.
I have had a number of clients over the past 3 years contact me after trying to file electronically. While trying to do so, they discover that someone has already filed under their social security number. Trying to put the pieces together to discover where the identity theft occurred, then protecting yourself afterward is a huge job.
A special note for Florida residents:
FL has a program where if a person has been hacked, they can file for a pin, which changes every year for added protection.
Please, take the extra step to just mail your return in. Your piece of mind is priceless.

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I recently helped a young man navigate the world of the 1040EZ. He is a college student who works. He was told he did not even have to file a return. He was going to do nothing. His total earnings for 2015 were just over $11,000. He will get back what he paid in Federal tax; it was a very small amount.
He asked me why he even had to bother. I reminded him that it is a law. If you are single and earn over $10,300, you have to file your tax return.
You don’t play around with the IRS.

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I have been talking to a lot of first time investors that are in their 20’s, which makes me happy. They were in high school during the crash of 2008 and know that things can change quickly. They watched their parents lose jobs and homes. They are also learning that they have to do for themselves. They still have a bit of a hard time when it comes to spending. Often, I tell them to ask themselves if an item is a want or a need before they spend their money. To make it easier for them to decide, I have shared a few tips.
Carry cash. This is almost a foreign concept to this age group. By carrying and spending cash, you have to go through more of an effort to get it out, make sure you have enough for your purchase, and stow the change. Hopefully, this will make you ask if this is a need or a want. I have heard back from this age group that when they spend a week only using cash, they get a better idea of just how much they are spending.
Make it harder to get to your credit card. I’m not talking about freezing your cards, just adding steps to actually get your card out. Wrap your credit card in a small piece of paper, tied with a rubber band. You now have to un-wrap the card to use it. This gives you a smidge more time to think about the need of that purchase.
Hold yourself accountable to someone about your spending. Make an agreement with someone you trust to discuss purchase over a certain amount. Simply discussing the purchase will force you to ask; “Is this a need or a want?” You will become a better consumer.

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These tax breaks are still available to you even if you don’t itemize. I believe you should use every legal means possible to lower your tax bill. Look to see if any of these apply to you.
If you are a teacher and spend your own money for supplies for your classroom, you can write off $250.00 of that out-of-pocket expense.
If you have used after tax dollars to fund your health savings account, you can take an above the line deduction.
Divorced & paying alimony? As long as your alimony payments are spelled out in your divorce decree, you can deduct them.
Retirement account deposits to a traditional IRA may be deductible. As long as you contribute within the limits, you can make a 2015 IRA contribution up until 4/18/16.

Don’t pay more than you have to in federal income tax – look to see if any of these deductions apply to you.

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Since 1995, that number of parents that do not split their assets equally among their children has doubled. Is this proof that they really do love Susie more than you? Perhaps. More likely, the un-even split is more practical than any other reason.
In every family, there is the one child that has the lion’s share of responsibility, in a number of families there is a child that is very irresponsible or has substance abuse problems. Sometimes, the un-even split is based on physical or mental disabilities.
Another reason for an un-even split may be that your parents may have helped you more financially during their lifetime than they did your siblings.
So do they really love Susie more? Probably not. Their decision may be based on your lifestyle and/or needs – they love you all the same.

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If you read my posts, I am not too happy with the proposals in the 2016 budget our President has put forth. I do not feel that anyone, at any level should be told to stop saving. If you have the ability to save – you should. If you live within your means, you will be able to leave a financial legacy for your family. The last proposal I will write about is capping retirement savings. Currently there are not limits as to how much may be accumulated in retirement accounts. The 2106 budget proposes a limit of account, through growth of value &/or contribution of $3.4 million. Yes, this is a huge limit; most of us will never see our accounts grow that large. The idea of a limit is what bothers me. If you open that door, how far down will that limit go?

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The 2016 budget proposed by President Obama is proving to be one that is not friendly to the current retirement tax laws.
Currently, if you are over age 70 and still earing an income, you can contribute up to $6500/yr. to a Roth IRA. It has been proposed to eliminate this provision.
I will never understand an idea that prevents savings of any kind at any age.

• Income limitations apply.

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