Filing your taxes can be difficult the older you get, but thanks to a brand new form that has been created for taxpayers over the age of 65, this will no longer be a problem!
Money is a part of your whole life. From the first time you asked for an allowance to the first dollar of retirement that you spend. Taxes, too, are just as prevalent once we start earning money, and will follow us through until the end of our lifetime. We are a family company here at Hoods, and we want to help and care for all of our families in Goose Creek. We have made it and are now just a few weeks past 2020's new tax day of July 15th. We will be busy over the next few weeks helping all of our amazing clients get their tax paperwork finished and taken care of. As we finish up this year's tax season, we wanted to take some time to talk about our seniors and retire clients, and share some exciting news for their next tax season.
Doing taxes has now become easier than ever before thanks to the Bipartisan Budget Act of 2018, according to CPA Practice Advisor. As part of this new act, the IRS has made special tax forms for senior taxpayers, the 1040-SR US Tax return forms. These forms come with larger fonts and better readability. With the fonts being larger, the forms will now be two pages instead of one. To help with readability, you will also see a change in the coloring of the forms. Any shading that had been previously used around text boxes has been removed. Even better, these forms are available to fill out both online or in their paper form that can be submitted through the mail. The IRS, since they released these new forms, have "wanted seniors to know about the availability of this new tax form" and we will gladly help them spread the word. The form, along with its new features will include a standard deduction chart, too.
We understand that the process of learning and growing through each wave of taxes in your life is hard. From learning how to do it for the first time, learning how to file for the first time as a married couple, and learning how to file once you retire and begin collecting from social security is all hard to keep up with. Thanks to the 1040-SR forms, the IRS is taking steps to ease at least one of these transitions while we are here to help with the rest.
You don't have to be retired to use these forms either. As long as you were born on Jan 2, 1955, and before, they are available to you. If you are still working, have multiple sources of income, are receiving social security, annuities, or more, these new forms allow you to report on all of it. Not only is the readability much better, it's aimed at cutting down on extra work and stress. The from even allows you to choose to take the standardized deduction or itemize your deductions. The chart that is provided on these new forms will make taking that standardized deduction much easier. If the taxpayer wants to itemize, they will just need to include the Schedule A itemized deduction paperwork with their 1040-SR return. Also, according to CPA Practice Advisor, these new forms make sure that seniors are "aware of the incredible standardized deductions for taxpayers 65 years and older."
What if your partner isn't 65 years or older but you are, and you plan to file together? That's ok! You will still be able to file together and you can use the new 1040-SR form to do so if you wish. According to CBS News, this will make filing taxes easier for at least 10% of over 150 million Americans who file their taxes. It will also, thanks to its new set up, allow seniors to use the form to see if they'll be getting a refund or not right away and to know what amount they will be receiving. It will give this generation of taxpayers the freedom to continue to handle their taxes and their finances, which we love to see. Seniors who have a dependent child or grandchild are still able to take a tax credit for them as well with these forms. Ironically, as much as we have been thanking the IRS for these new forms, it was thanks to a very long battle fought and won by congress that made the 1040-SR forms a reality.
Now that this tax season has come to a close with the passing of July 15th, please keep these new forms in mind for preparing and filing your 2020 taxes next year. We could still see more financial changes in what remains of 2020, so filing may be even more unique next year than we can guess. We will be here to help you through these changes if they appear. But, if you haven't been aware of these new forms, we hope that they will help you in the future. We are here to support you and our amazing community of Goose Creek! If you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!
Preparing for what will happen after you pass is a process. But, is a will really important for you and your family to have?
Wanting to protect your family, even after you're gone, is a goal many of us have throughout our adulthood. Leaving behind money, property, and assets to your loved ones can leave you at peace knowing they will be cared for, even if just for a little while. When it comes to leaving things behind to your loved ones, do you need a will? Do you have to write it down and make it official? Is this whole process actually important? That is what we will be discussing today!
When money and possessions come into the picture after a family member has passed away, it can show the ugly side of people, even if they are your relatives. Even if you map out exactly what you want done with your finances and your possessions after you're gone, how do you really know if your good intentions and plans will be followed through with? That is where a will steps in to help. A will legally lays out your wishes with how you want your possessions and finances cared for after you pass, along with naming someone who is responsible for making sure your wishes are carried out. It also comes with the legal power to make sure this all happens. Wills can also make sure that any children left behind will be guaranteed to be left in the care of the guardians of your choice, help with forgiving your debts, and much more. A will guarantees that you decide what happens with your property when you pass, not the state. The state would take your property and distribute it much differently than you probably would. A will makes sure they stay out and away from your personal business and belongings.
As we mentioned before, when money and possessions come into the picture, family and loved ones can get a little, if not very, nasty. A will can give you peace of mind that what you wish to happen will be carried out, and no speculations happen. It also prevents the state from making those decisions for you, which for a big family or a family that has divorce and remarriage in it, can make it very awkward and uncomfortable. Emotions run extremely high after a loss, and people become extremely vulnerable. Families can get hurt even more when fights and disagreements are caused due to possessions and responsibilities left behind. Take that pressure off your loved ones by making any and all decisions ahead of time.
You must follow state law and regulation with your will. Regardless of having one or not, all of your property must go through the process of probate. Thankfully having a will speeds up this process, so your family can take care of the business you left behind faster and receive anything they are due to inherit much quicker. A will also lower your estate taxes. The value of the items you give away will reduce the value of your estate once it comes time to pay taxes on it. A will helps you avoid legal challenges, and allows you to disinherit anyone you wish not to inherit once you pass away.
A will can even help ease the burden of unanswered questions for your loved ones. You figure that those who have walked through life with you know everything there is to know. Sometimes, the most precious memories and explanations can slip away with time. When planning for the end of your life, you can leave behind special memories and reasons why you did what you did. You can write this all down in a letter or small memoir that can be shared and cherished with your loved ones, thanks to the protection and delivery of a will.
What happens without a will? Decisions are made without your consent and quite possibly handled exactly opposite of what you actually would want. Keep in mind that passing without a will is different for every state, and each state decides if a person's belongings go to a sibling, parent, child, or spouse after a person passes away. Not having a will can lead to a very time-consuming process, while the state decides what to do. This includes what to do with your money, too. If you have minor children when you pass and don't have a will, their care and decisions are also taken care of by the state. As hard as a court might try to find the perfect fit for a child, they won't understand family dynamics and could place your children in the care of someone you wouldn't want them to be with. If you are not married to your partner when you pass without a will, they could receive nothing and have everything taken away from them and given to an estranged or distant family member, leaving them in a very difficult position.
Your will is your voice, your power, your decisions, and well wishes. It is something that can be a little time consuming and a difficult process to begin, but it can be the last gift and moment of ease you leave to your loved ones. If you don't already have a will, consider this blog. Consider those you are leaving behind, and consider what responsibilities you'll leave them with. If you have any questions about your finances during this time, need help with your tax payments or tax money for 2019 or 2020, please never hesitate to contact us. We are here to support you and our amazing community of Goose Creek! if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!
Write something about yourself. No need to be fancy, just an overview.