Johnson Tax & Financial Solutions

Things to remember when filing 2023 tax returns-Tip #1

Here is a checklist to help taxpayers as they prepare to file their 2023 tax returns during filing season.

This 1st tip will help make tax preparation smoother in 2024.

1. Gather all necessary tax paperwork and records for accuracy to avoid missing a deduction or credit. Taxpayers should have all their important and necessary documents before preparing their return. This will help file a complete and accurate tax return. Errors and omissions slow down tax processing, including refund times.

Before beginning, taxpayers should have:

Social Security numbers for everyone listed on the tax return.
Bank account and routing numbers.
Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions.
Form 1095-A, Health Insurance Marketplace statement.
Any IRS letters citing an amount received for a certain tax deduction or credit.

Earned Income Tax Credit

WASHINGTON — The Internal Revenue Service and partners around the nation today launched the annual Earned Income Tax Credit Awareness Day outreach campaign to help millions of low-to-moderate income working Americans that are eligible to claim the Earned Income Tax Credit (EITC).

For the past 18 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort.

According to the most recent figures, approximately 23 million workers and families received about $57 billion in EITC for tax year 2022, and the average amount of EITC received was about $2,541. The IRS estimates that about one in five of EITC eligible taxpayers don’t claim this valuable credit, a statistic that stresses the importance of the annual EITC Awareness Day outreach campaign.

“The IRS and our partners across the nation urge people to look into this frequently overlooked tax credit that can help millions of taxpayers,” said IRS Commissioner Danny Werfel. “On EITC Awareness Day and throughout the filing season, the IRS and our partners work hard to reach eligible taxpayers and provide useful information and resources to help people determine their eligibility and how to properly claim this valuable credit. Even people who don’t normally file might still be eligible for the Earned Income Tax Credit, which can be thousands of dollars.”

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CAll 833-346-2829 today to setup an appointment to get your taxes done before the October 16th deadline!
You can also visit http://solutions2finances.com/ to schedule an appointment.

Time to get those 2022, 2021, and 2020 and beyond, taxes done!!833-346-2829

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Get your finances on the right track! Stay focus and navigate your way through the Roadmap to Financial Freedom.
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A couple weeks ago I bought the watch on the right. These are the actual product images and actual prices as listed on Amazon. It's tempting to want the "latest and greatest" but I decided is the difference between a six and an eight REALLY worth more than double the price? I asked my friends what version Apple Watch they have. Some didn't know. Some had the first version. Some had the eight. No one cared.

So I bought the two versions old one. It was even "renewed". Likely a return from someone else who didn't like it. When it came to me it looked and worked like brand new. Whether I bought new or not, the second I put it on my wrist it's now a used watch. And my new Apple watch works great! It's got all the apps and does all the things. I literally don't know what else I would have gotten for $235 more. And that ignorance is bliss. I left the $235 invested so I can continue to be retired early and have total freedom with my time. Buying fewer, nicer, and cheaper things is how I don't become a slave to my stuff. Dragging myself to a job I hate to make payments on a lot of stuff is my nightmare. I treasure freedom and experiences. Less stuff supports both.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

Money leaks can be like tiny leaks in a pail that make the pail impossible to fill.

These leaks happen when you have small expenses that add up to a lot of money over time. It can be simple things you don’t think about, like a small subscription service you don’t use anymore.
While the money might not be a lot by itself, the combined amount can quickly add up and make a large dent in your bank account.
If you find yourself wondering where all of your money went at the end of the month, you might want to consider looking at all of the small expenses you are making and identifying any possible spending leaks. Money leaks can be like tiny leaks in a pail that make the pail impossible to fill.

If you want more information on how to stop the money leaks call or text 833-346-2829.

What Are the 2022 IRA Contribution Limits?

For 2022, the total contribution limit of your IRAs, Roth or traditional, is no more than $6,000 ($7,000 if you’re 50 or older).1 You have until Tax Day of the following year, normally April 15, to make your contributions. Pretty straightforward, right? Ah, not so fast!

Exceptions to the Contribution Rules:
While the contributions I’ve talked about so far come from your income and count toward the annual limit, any rollover contributions (like rolling money from a 401(k) to a Roth IRA) do not count toward the limit. That’s because it’s money you’ve already contributed, and you’re just moving it from one home to another.
Even if you participate in an employer-sponsored retirement plan, like a 401(k), you can still contribute to a Roth or traditional IRA.

Some good news is that the government removed the age limit of 70 1/2 on contributing to traditional IRAs.2 As of 2020, there’s no age limit on making contributions to a traditional IRA—and there’s never been one with Roth IRAs.

With family at the Falcons game

Educators, you can become a millionaire!! Let me help you get started on your journey! Contact 833-346-2829 for a free 15 minute consultation today. http://solutions2finances.com/

Teachers are underpaid. I believe the long term solution to all of the world's problem is education. And we should be paying teachers to reflect that.‎
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But still, it's not like teachers make NO money. In 2021 the average US teacher salary was $65,090. Pretty close to the median US household income of $70,784 (which often has more than one income earner). ‎
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So Madison here decided not to wait her entire life for her pension to kick in. She took that $15,090 off the top and put it into her 403b. (Which is like the teacher version of a 401k). Since it's a traditional 403b, she was only taxed on the remaining $50K/year, giving her a lean cost of living, but she made it work.‎
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And for her financial ambition, she was rewarded! Hitting millionaire status in her early-forties. Instead of working ANOTHER twenty-five years waiting for her pension, Madison has options! Maybe she can teach part time, and work more on her hobbies. Or switch careers for the second part of her life. Or keep teaching because she loves it and go on more fancy trips or be outrageously generous! I don't know what Madison is going to do with her money, that's her business. But she crushed it.‎
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As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎
‎
-Jeremy‎
‎

Inflation Reduction Act

The Inflation Reduction Act (IRA) signed by
President Biden Aug. 16 includes a variety of
tax provisions that will impact U.S. businesses
and individuals. While some of the changes have
received a great deal of media attention, others
may come as a surprise to those who have not
been following the legislative process closely.
Generally, the changes implemented in the IRA
fall into one of eight broad categories:
• Extending the health insurance premium tax
credit provisions of the American Rescue Plan
Act of 2021 through 2025
• Changing the tax credits for electricity
produced from some renewable resources,
the energy tax credit and certain fuels
• Extending state and local tax (SALT)
limitations
• Adding research credit flexibility
• Extending excess business losses (EBLs)
• Increasing IRS appropriations by $80 billion
to improve taxpayer services, increase
enforcement and fund other activities
• Establishing a 15% corporate alternative
minimum tax
• Imposing a 1% excise tax on corporate
stock repurchases
Each of these provisions in the IRA are discussed
in more detail in the sections that follow.

What does pay yourself first mean?

Paying yourself first is when you set aside money for your financial goals before you spend money.

Most people are accustomed to paying for needs, spending on wants, and only then saving money.

One of the easiest ways to do this is to have money automatically go into an account that’s separate from the account you use to pay your bills.

When you pay yourself first, you are prioritizing saving or investing for your future self before you spend money.

A Personal Finance Lesson Plan for Teachers

Explore help with student loans

Under the Teacher Loan Forgiveness Program, if you teach in a low-income school or educational service agency and meet other qualifications, you may be eligible for forgiveness of some of your federal student loans.
As a government employee, you may be eligible for public service loan forgiveness (PSLF)—another potential benefit you don’t want to overlook. This PSLF Help Tool can guide you through eligibility criteria and actions you need to take.

Don’t just save, also invest

Saving money for emergencies is essential, but when you’re setting aside money for longer-term goals it’s important to switch gears from being a saver to an investor. Investing puts your savings to work—so you don’t have to.
If you’re new to investing, take some time to educate yourself about the tradeoffs between risk and reward and the importance of diversification. While stocks have historically performed better than cash or bonds over long periods of time, because of their volatility they’re generally only appropriate if you have a timeframe of five or more years.

To get started or if you need making the right financial adjustments, call or text 833-346-2829.

A Personal Finance Lesson Plan for Teachers

1. Start with a clear assessment of where you are today
Before you do anything else, figure out your current net worth. This simply means adding up what you own (your assets) and subtracting what you owe (your liabilities). Next, write down all your expenses and sources of income. The result is a financial snapshot of your current situation—and will be the benchmark you can use to measure your progress over time.

2. Set your goals
Next, spell out your goals. Perhaps you want to buy a house or save up for graduate school in five years. If you're carrying consumer debt, make paying that off an important goal. This will allow you to make retirement a high priority. Goals often change over time, but writing them down now will help you focus on your priorities and save and invest accordingly.

Don't let a recession wipe you out! Call or text 833-346-2829 to keep your money from leaving.

Here’s how much cash you need to ride out a recession at different life stages, according to financial advisors With the threat of a recession looming, financial experts share how to prepare, including how much cash to set aside.

Getting started today on your Financial Future!! Call or text 833-346-2829 to get started on a brighter financial picture!!
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Financial Planning for Teachers: 10 Tips I Wish I Knew Financial planning for teachers is extremely important. Here are some tips to help you master your money.

Enjoying the NYC sunset on the boat

Contact me at 833-346-2829 to maximize all of your refunds!!!
If you have not file your taxes for 2021 or any other previous year, contact me today!!

https://www.gpb.org/news/2022/03/24/11b-georgia-refunds-could-begin-in-weeks-kemp-signs-law #

$1.1B Georgia refunds could begin in weeks as Kemp signs law Special state income tax refunds paid out of Georgia's historic budget surplus could be on their way to taxpayers in six to eight weeks. Gov. Brian Kemp on Wednesday signed the $1.1 billion refund plan into law.

Excited about passing my QuickBooks certification to become a QuicksBook Pro advisor! Getting back into bookkeeping to help my small business clients and future clients. I have a BS in Accounting , attended graduate school (MBA), have a Lean Six Sigma Green Belt, and wealth of corporate and financial experience. I look forward to seeing you as my future client.
Call or text 833-346-2829 to set your appointment. http://www.solutions2finances.com

Johnson Tax & Financial Solutions We are a virtual business that help professionals & small businesses reduce debt, increase cash flow.

Update!!

IRS will officially began accepting and processing returns on January 24th. Call/text 833-346-2829 today to set an appointment. You can also view my scheduling link below to book an appointment. Book soon, slots are filling up.
https://api.taxnitro.com/.../johntaxandfinancial/taxpre

Johnson Tax & Financial Solutions We are a virtual business that help professionals & small businesses reduce debt, increase cash flow.