Good Day LA – Fox 11 Los Angeles – Last Minute Tax Day Tips with guest Tax Expert David Rae of Financial Planner LA. Hosted by Araksya Karapetyan and Tony McEwing.
By David Rae Certified Financial Planner™, Accredited Investment Fiduciary™
Things you will hear about in this video:
What do you people need to know for 2020 Tax Filing?
This is the first-year people are filing under the Tax Cuts and Jobs Act– also known as the Trump Tax Plan.
The Cap on State and Local Deductions is expected to increase the taxable income of California by over $100 billion dollars this year alone. This one change alone will be terrible for Los Angeles homeowners and those making a good household income.
If you take the standard deduction you may be in better shape- but homeowners and above-average earners may see big tax increases here in California.
Are Tax Refunds Up or Down?
Yes, overall tax refunds are down over $6 Billion dollars so far this year. It is expected that over 1.6 million fewer people will get a tax refund this year compared to last year.
Keep in mind your total taxes and your tax refund are not the same things. A refund is simply a returning of overpayments you have made throughout the year.
What Can People still do to lower their tax bills?
You have until July 15th to fund your IRAs and Roth IRA $6000 for 2020. If you have self-employment income you can open and fund a SEP IRA through your extension – up to $57,000 for 2020.
Look for deductions you may have missed, for example, Medical expenses, a donation to charity, volunteering. It pays to take a look at your credit card statements and bank account for the money you spent.
What Should People Be Doing For Their 2021 Taxes?
Adjust your withholdings from your paychecks if you got a big refund or owed a lot in taxes.
Talk with your financial planner about other tax savings strategies you can use to keep more of your hard-earned money.
Increase your retirement account contributions, this will help lower your taxes owed, and help you retire earlier and or better. IRA and 401k Contribution limits are $6000 and $19500 respectively for 2021.
For More information on setting up a solo 401(k) plan read this post:
Araksya Karapetyan and Tony McEwing
DAVID RAE, CFP®, AIF® is a Los Angeles fiduciary financial planner with DRM Wealth Management, a regular contributor to Forbes.com, Advocate Magazine, Huffington Post, not to mention numerous TV appearances. He has been called a “Tax Wizard” on ABC Nightline. He helps smart business owners across the USA get on track for their financial goals. For more information visit his website at www.davidraefp.com
For more last-minute tax planning tips check out this great video from Financial Planner LA and ABC 7 News.
Connect With David Rae, Financial Planner LA
David Rae, CFP® AIF®
President / Founder DRM Wealth Management LLC
1(323) 905-4380
david.rae@financialplannerla.com
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