Category Archives: Care Act

First Full Week of School in the Books … Partial Week Next Week, Labor Day ! Getting Ready for Fall Sports… Child Tax Credit Preview … Late Summer Friday

Whew….. the first full week of school is thankfully almost in the books…..

Always say after the first or second full week “Don’t know how we are going to make it!” But we do!

The Sleep schedule is getting better, up at least 10-15 minutes for the 13 year old before departure time

He even got the choppers brushed four out of five days!

Just when the schedule steadies… next week has an early release late in the week followed by Monday Labor Day Holiday!

As a reminder, Monday week is the official Labor Day Holiday! (Maybe that is for return to school help …haha)

Fall Sports on the Horizon…

As the days get shorter on light, the fall sports calendar starts to get in gear!

Child Credit Confusion

We have run into repeated Child Tax Credit Confusion and are planning an early next week longer post with the IRS notes for clarity…. we really have had a lot of questions and have been somewhat confused ourselves …

It’s a Friday and most of that was last week, but we are heading into a late Summer Friday on the weekend before a shortened week…

Enjoy, talk next week and have a Great Weekend,


John A, Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

2020 Form 1040 Tax Return Extension Filers … Important Reminder: September 1, 2021 Important Tax Filing Look Back Reminder …. $1400 On the Line!

This is your formal reminder, if you are close to a phase out or did not receive the Part 3 Stimulus of $1400 AND you filed an extension, AND your return may get you qualified for the $1400 stimulus, GET THOSE TAXES FILED!

Third Stimulus Look Back Reminder IMPORTANT Tax Filing Date Those Close To Phase Out

As mentioned here in great detail and in our Q 2 2021 Newsletter, one week from today, the IRS will look back on those who were phased out by their incomes on their 2019 Returns and did not receive phase III stimulus of $1400 …

Individuals earning $75k will be phased out at $80k and JT $150k phased out at $160k

Individuals/Families who had a higher 2019 income that knocked them out of some or all of the stimulus original money but a lower 2020 income assuming this person would have qualified for the $1400 per person stimulus based on year 2020 … what the IRS is going to do concerning this matter is on September 1st 2021 they’re going to review all of the 2020 tax returns for folks who had not received the $1400 credit for them and their family and if they meet that threshold they will then receive the $1400 credit period remember this is the much faster phaseout of only $160k and $80k Joint and for an individual.

Bottom Line: If you are close to the phase out and have not filed your Tax return, do so before September 1, 2021!

Have a Great “Phase III Stimulus Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

April 2021 Financial Planning and Capital Market Review – By John Kvale

Hello and Welcome to our April 2021 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

April 2021 Video

YouTube

Financial Planning Tips

Rounds 1-3 Stimulus Funds Explained

In this late month post we reviewed our integrated Tax Filing learnings with an updated Stimulus check flow of funds…

The confusing part is mostly from the situation where a decrease in earnings from 2019 to 2020 brought Stimulus credits onto our 2020 Tax return, in the form of that Sneaky Line 30 of our 1040.

September 1, 2021 Round 3 of $1400 Stimulus Look back

There are several important lines in the sand….

Individuals/Families who had a higher 2019 income that knocked them out of some or all of the stimulus original money but a lower 2020 income assuming this person would have qualified for the $1400 per person stimulus based on year 2020 … what the IRS is going to do concerning this matter is on September 1st 2021 they’re going to review all of the 2020 tax returns for folks who had not received the $1400 credit for them and their family and if they meet that threshold they will then receive the $1400 credit period remember this is the much faster phaseout of only $160k and $80k Joint and for an individual.

2021 Tax Return Look Back

Assuming you were not below the thresh hold for 2019 or 2020 return, If a person’s income in 2021 were to drop below the new thresholds .. think next year around this time… you will still qualify for the $1400 credit . They are using the same play book as the original March 2020 rebate look back to give an extra year of the $1400 being credited and it would then show up on sneaky line 30 form 1040 tax return for 2021!.

Capital Market Comments

Fearful or Greedy

“Be Fearful When Others are Greedy and Greedy When Others are Fearful”

Warren Buffett

In this mid-month post we take a soft swipe at market Valuations, knowing that Valuations do not make markets drop, but does possibly set them up for faster drops if unexpected events occur

Time to Be Greedy

Capital Markets are the only store in town where when things go on sale, people flee the store!

Time to Be Cautious

For some reason we just want to hop on and go for a ride- feels good -but very dangerous!

Have a Great Day, Talk to You at the End of May!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Stimulus Funds Further Explained, Rounds 1-3, Those Near Phase Out Likely Very Important Information For You Here!

Last Friday here in this post we mentioned that we had accidentally stumbled onto an explanation of the stimulus checks and especially with regards to those folks near the phaseout area.

If you have received all of your and your family’s stimulus checks or if you have received no stimulus checks and your income is the same or higher please carry on this article is not for you but feel free to share with a friend or colleague who might be in this situation.

Round One Stimulus $1200 adult, $500 Qualifying kids

Stimulus Rounds Reminder From Our Q 2 2020 Newsletter

Round 1 : $1200 adult, $500 qualifying kids

Checks Being Sent to Over 90% of the population 

Each person to receive $1200, kids UNDER age 17 credited to parents at $500 each, no limit in headcount. 

This Rebate is NOT TAXABLE! 

The payout is likely to be sent out end of April or early May! 

There is a phase out: 

The applicable AGI phase out threshold amounts are as follows: 

  • Married Joint: $150,000 
  • Head of Household: $112,500 
  • All Other Filers: $75,000 

This phase out is based on either your 2018 or 2019 tax return, whichever is most recent. If your income exceeds the threshold and you are phased out completely, and your 2020 income is below the threshold when you file your 2020 tax return, you will receive your Recovery Rebate at the time of your 2020 filing. 

If you did not originally receive round 1 or were partially phased out the key is this last underlined sentence. If your 2020 Income drops into the threshold of receiving some or all of the prior stimulus assuming your 2019 income was higher and you did not receive any or all of your 2020 rebate, it is showing up on the new sneaky Line 30 of the 1040!

But hold on that’s not all  January 2021 – Round 2 $600 Stimulus

Another new phase out:

For every $100 of Adjusted Gross Income (AGI) a taxpayer exceeds their applicable threshold, $5 of Additional Recovery Rebate will be phased out. Thus, the phaseout range varies from taxpayer to taxpayer, depending upon the size of their ‘base’ Additional Recovery Rebate in the first place (i.e., the more eligible individuals, the larger the dollar amount to be phased out at $5 per $100 of AGI, and the more income it will take to fully phase out the rebate check!

If you were phased out based on 2019 return and qualify based on your 2020 return, this will also show up on the sneaky Line 30 of your 1040!

But hold on that’s still not all- Round 3 the $1400 check -Sept 1, 2021 Lookback

Another More Cliff (Fast) Phase Out

Individuals earning $75k will be phased out at $80k and JT $150k phased out at $160k

Individuals/Families who had a higher 2019 income that knocked them out of some or all of the stimulus original money but a lower 2020 income assuming this person would have qualified for the $1400 per person stimulus based on year 2020 … what the IRS is going to do concerning this matter is on September 1st 2021 they’re going to review all of the 2020 tax returns for folks who had not received the $1400 credit for them and their family and if they meet that threshold they will then receive the $1400 credit period remember this is the much faster phaseout of only $160k and $80k Joint and for an individual.

But Hold on that’s still not all – Not Kidding! Tax Return Year 2021 Look Back!

Assuming you were not below the thresh hold for 2019 or 2020 return, If a person’s income in 2021 were to drop below the new thresholds .. think next year around this time… you will still qualify for the $1400 credit . They are using the same play book as the original March 2020 rebate look back to give an extra year of the $1400 being credited and it would then show up on sneaky line 30 form 1040 tax return for 2021!.

It’s very likely that this will cause great confusion next year … even more than it is causing this year because it will be so much farther in the future .

Important planning technique for this year for people who have failed the 2019 and 2020 income tax level. Should you be able to control your income in some way form or fashion it may be worth you keeping an eye on your total income this year tax year 2021 and attempting to keep it below the current quick phaseout levels in order to receive the $1400 per person benefit next year. Just a thought  

To Summarize Round 1, 2 and 3

A lower 2020 income may bring some or all of the Round 1 and 2 onto Line 30 of your 1040 at the time of fling your 2020 Form 1040 income tax return.

The IRS will look at all returns who did not already receive the Round 3 $1400 stimulus on September 1, 2021 and if you qualify, sometime shortly there will be another $1400/person sent. If you fall into this category, or think you may, DO NOT FILE AN EXTENDED EXTENSION – If you file after September 1, 2021 you will have missed the look back window!

If you fail all of these tests, there will be one last check this time next year for your 2021 return, and if that is lower you will receive the $1400 at that time.

Wow…. Clear as we could be, but it is confusing!

We will have a more detailed article in the coming Newsletter as well as reminders here as we hit deadline dates!

Have a Great “Round 1-3 Stimulus Update” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Third Stimulus Check Details, Our Observations, Key Planning Techniques, Where’s My Stimulus Check Tracker Site

As mentioned last week here in this post, the $1400 + all dependents stimulus checks were approved and officially “On Their Way” or as they say the “Check is in the mail” a little over a week ago!

The most important item to know in this third round of checks are the almost “hard stop/cliff like” phase outs, unlike the prior stimulus funds, this phase out is steep and sharp. Single filers lose all benefits at $80k and joint filers $160k AGI.

Our Informal Observations Spotty Delivery

Delivery of the stimulus funds were much more spotty using our internal informal poll. Some families and their grown children as of today have seen nothing, even though they received funds immediately in the prior two rounds. Then in other situations after continued polling, we found no problems, with all grown children and families receiving their funds last week.

This popped into my inbox Monday from the IRS – Issue Number:    IR-2021-62

More Economic Impact Payments set for disbursement in coming days; taxpayers should watch mail for paper checks, debit cards

WASHINGTON – The Internal Revenue Service announced today that the next batch of Economic Impact Payments will be issued to taxpayers this week, with many of these coming by paper check or prepaid debit card.

For taxpayers receiving direct deposit, this batch of payments began processing on Friday and will have an official pay date of Wednesday, March 24, with some people seeing these in their accounts earlier, potentially as provisional or pending deposits. A large number of this latest batch of payments will also be mailed, so taxpayers who do not receive a direct deposit by March 24 should watch the mail carefully in the coming weeks for a paper check or a prepaid debit card, known as an Economic Impact Payment Card, or EIP Card. No action is needed by most people to obtain this round of Economic Impact Payments (EIPs).

In a misery loves company, if you have not received your funds yet, YOU ARE NOT ALONE!

So do not worry.

Key Planning Technique

For those on the edge of the cliff phase out of single $80k or JT filing $160k this is for you.

if your 2019 Return is under these thresholds… do not file your 2020 until you get your funds.

If your 2020 Return will get you under the threshold… run, don’t walk to file your return.

If you fail both of the above filing years, you have a chance if your 2021 return falls under the threshold you will get the stimulus in the form of a refund after you file your 2021 Return.

Here is what this looks like in flow chart form:

Where to Check For Your Stimulus

Just as in the prior two instances of stimulus, the IRS has updated their site to help you find your availability, amount and how you may receive your stimulus.

Here is the direct link to the website for security purposes, as there are very important/confidential questions you must answer to get this information – do not let your browser jump to a different address as sensitive information is needed to do the check:

https://www.irs.gov/coronavirus/get-my-payment

Here is what the page should look like

There you have it….

Third round of stimulus findings, planning tips and techniques…

Have a Great “Third Stimulus Update” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Third Stimulus Check Update … Much Faster Phase Out – Friday

So the next round of stimulus checks are being sent out as you read this… $1400 and all dependents meeting the requirements….

We will touch more on this next week, but one item that is different is the phase out in income levels is much steeper in this round of stimulus.

Faster Phase Out

Individuals earning over $80k and joint filers earning over $160k are completely phased out. This is a much faster phase out than the prior rounds.

If you were partially phased out in the prior rounds, it is very likely you will be completely phased out this round.

Again, more on this shortly!

Friday Heading Toward Spring

Today is a Friday heading into a soon to be warmer spring time….

Enjoy your Friday and your weekend…. talk next week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

January 2021 Financial Planning and Capital Market Review – By John Kvale

Hello and Welcome to our January 2021 (First Monthly Review of the New Year) Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

January 2021 Video – First of Year

YouTube

Financial Planning Tips

Required Minimum Distributions Now 72

As mentioned here in our post, do not feel bad if you lost track of changes, as in just over 12 months there were THREE – yes three major laws implemented.

Late December of 2019, the SECURE act (Setting Every Community Up for Retirement) among other things, upped the first mandatory RMD (Required Minimum Distributions) from Qualified/IRA/401k type plans to 72!

The Covid 19 related Cares Act passed in late March of 2020 nullified RMD’s for all of 2020, making for some confusion.

Second Stimulus Check Update

In this post, we review the new Stimulus check amounts, and where you can CAREFULLY go to check the status of your check…. here are the highlights…

Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment.

Here is the link to the US Government tracking site:

https://www.irs.gov/coronavirus/get-my-payment

Once open need to Click on “Get My Payment” Tab

Be very careful when opening this site to NOT allow your browser to jump to any other site than that associated with the IRS as you will be asked for confidential information!

Capital Market Comments

Buffett Back Of Napkin Valuation Metric

After happily receiving an “OK” to reprint graphs directly from the CEO of this industry publication – Look Out, there are tons of Great Articles that we look forward to bringing you!

Up first, a great broad Buffett “Back of the Napkin” Market Value Metric- This is the Market Capitalization of the S&P 500 divided by the US Gross Domestic Production…. This measure has never been this high before- sending a warning signal for Current Valuations.

“Price is what you pay, value is what you get!”

Chart Via Jill Mislinski 1-5-21 (Advisor Perspectives)

Happy Start to the New Year!

Have a Great Day and Super Start to the New Year!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Recovery Rebate Website Finder Updated – Where’s My Rebate?

Long time followers know posts usually occur on M-W-F, but in an effort to get updates to you guys quickly and share information, deviations have occurred ….

On Thursday of last week while helping several people determine if they were due a rebate AND where might it have gone…. a message announcing a three day shutdown for upgrades occurred.

Good News on the other side!

Recovery Rebate Website has been Updated

Sunday, late morning, an email was received from the IRS announcing that indeed the three day shutdown was for an update.

Checking a handful of folks that had not received their rebate, multiple, but not all were now showing a more descriptive explanation of where and how they would be receiving their rebate.

Here is the direct website…again be careful as included in the email from the IRS were multiple warnings about fraud…

https://www.irs.gov/coronavirus/get-my-payment

Here is a screen shot to make sure you are going to the correct website…. bad guys would love you to enter your confidential info… make sure the site you see, looks like this:

IRS Recovery Rebate Site

Have a Great “Found My Recovery Rebate” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

PPP – Paycheck Protection Program – Part Two – Opens Again TODAY – Do not Hesitate if you missed the first time!

Last Friday April 24, 2020 a second round of the PPP AKA Paycheck Protection Program was approved and signed into order. With the benefit of hindsight and experience of Round 1 we can now offer even more pointers and helpful hints!

PPP – Paycheck Protection Plan Part 2 – Updated Tips SBA Logo

Do Not Delay – In less than two weeks the original program was completely diminished of all available funds, and this round has slightly less total funding.

Double Check Original Loan if you missed – If you tried with no success in round one, immediately contact your bank and status your original application… fingers crossed in not loosing our place in line, but each lender may treat this differently.

Smaller is Better – The big banks are having trouble processing these likely due to volume – if you have a small banking contact that’s a better possibility – if you do not have a small banking contact right now an attempt to arrange one will likely be fruitless as they will be very busy as well and are taking original clients first.

Sole-Proprietors and Business Owners -As a reminder this plan is for Sole Proprietors – Self-Employed or Businesses with employees who have been adversely affected in one way or another by the lock down/Virus.

Reminder of Loan Amount and Terms – The  loan is for 2 1/2 times your monthly average for last year as long as you have the same or more employees and will be available and if the loan is used in eight weeks with 75% or more being payroll it will be forgiven! No taxes, totally free money!

Open a New Account for Funds -Not surprisingly there were some buyers remorse and the federal government has let it be known that they’re serious about the use of these funds.  We highly recommend you open a second account and keep copious records on how you’re using these funds or you may have scrutiny problems in the future dealing with forgiveness!

Pandemic Unemployment May Make More Sense – Those self-employed if you showed little or low income last year you may be better off to attempt the Pandemic Unemployment Benefit which is $600 a week for Four months or until income commences – TIP- Our experience with this is that the unemployment agencies of the separate states are extremely backed up and will likely take a longer period of time to commence these benefits – Be patient!

Again, time is of the essence, if you missed Part 1, get going … these funds likely will not last long!

Have a Great “PPP Part 2” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Recovery Rebates Are Out … Tracking Site – IF (?) You Want to Check on Status … Another Sharing Post

Yesterday we were introduced to the IRS website that allows tracking of your Recovery Rebate

Feel free to share with all, due to the headcount size of this Rebate, there are certain to be numerous problems and backlogs i.e. The faster fixed the better!

Recovery Rebates Commence

Originally we were under the impression the $1200 Recovery Rebates were due near the end of April or early May…. 

Good news… with a sampling of just under 20 people yesterday, the Recovery Rebates are out!

If you think you are due a rebate and have electronic instructions on file, we suggest you check your bank account first to see if there was a deposit yesterday!

If you did not, or are uncertain if you are receiving a Rebate… you may check the attached website…. BE CAREFUL … make sure you link to the correct site as it will ask for a Social, DOB, address and zip… all of which in bad hands can cause trouble… 

Here is the site.

https://www.irs.gov/coronavirus/get-my-payment

Normally we would hot link to this site, but we do not want your browser to accidentally grab the incorrect information or someone jump in front of our link.

Make sure you are on the correct site… looks like this…. note the web address

IRS Recovery Rebate Site

Again, with about a 20 person sample (we know, small but wanting to get this to you fast fast fast) we had a 20% problem rate. All problems were due to bad bank instructions on file.

Again, be careful…but if you have troubles, it may be worth checking as there are certain to be a backlog of problems causing delays in the future!

Have a Great “Recovery Rebate Check” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

 

 

 

 

 

 

Here is the site from the IRS