Welcome to our Video and Audio Podcast Review of our Q1 2021 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
In this start to a new year, we update the pictures on the Video and also the entry and exit music. Our editor actually greatly adjusted the colors and fonts of the Newsletter this year, which we really liked as well.
Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
This Newsletter is chocked full of reminders from events and experiences we had with you in the field last year the would be helpful looking forward into 2021!
J.K. Financial q 1 2021 newsletter
Let’s get going! We hope you enjoy!
Q 1 2021 Newsletter
(YouTube)
The Homestead Reminder
With a very large number of moves in 2020 …. much greater than we can ever recall, in this Article we remind of the Homestead.
In the year 2020 we have had more change of residences than we can ever recall over the past three decades. As a reminder, and using Texas as a template, if you live in your home on January 1 you can do what is called a homestead tax exemption. Once again through the lens of Texas, this is a particularly good tax savings exemption that everyone should do if you live in Texas.
Q 1 2021 J.K. Financial, Inc. Newsletter Lead Financial Planning Article
And just a bit more description from the same Article …
From TexasLawhelp.org – a fantastic non-profit resource we use frequently – again only for Texas residences, those living in other states may want to check for a similar organization.
What property qualifies as a “homestead?”
A “homestead” is a house or other residential structure that you own, together with up to 20 acres where the structure sits if the land is used for residential purposes. A manufactured home on a rented lot qualifies as long as you own the home. Manufactured homes must meet additional requirements for a “Statement of Ownership and Location,” but if you did not receive the paperwork from the prior owner and cannot locate the seller after making a good faith effort, you can submit the affidavit in Form 114-A.
Estate Planning Tops Our Minds
It was literally a race for the greatest increase over normal years, for folks moving to a new residence (per above) or reviewing and updating their Estate Plans.
Has Anything Changed Since My Documents Were Written?
Just because five, seven or even ten years have transpired does not mean that you automatically need to update your documents. If everything looks right, and things have not changed then those documents are likely just fine.
On the other side of the equation if things have changed in the past twelve months (or even less) that would make your documents incorrect, you likely need to do an update so your directives are appropriate.
Q 1 2021 J.K. Financial, Inc. Newsletter Second Lead Financial Planning Article
If we are not in possession of a copy, please send to us or upload to your Vault as we keep things safe and most importantly FOREVER!
Q 4 2020 ES Reminder – The Safe Harbor
Mid-month, January 15, 2022 to be exact is the final due date for Quarterly Tax Payments ( Q 4 2020 ES Tax Payments.) With a pushed out ordinary filing date due, it seems like to many we just filed last year’s taxes (2019), and here we are already rushed to complete 2020. Hence the reminder.
Here is what is looks like
Here is the link to Publication 505 for 2020 (https://www.irs.gov/pub/irs-pdf/p505.pdf) which gives you full instructions on how to file. Here is the link to Form 1040 ES Publication for 2020 (https://www.irs.gov/pub/irs-pdf/f1040es.pdf) which contains the final voucher.
The Safe Harbor
Lastly, if you are in a situation where you tax bill may be dramatically different from the prior year, in this case 2019, consider trueing up your 2020 taxes to at least 110% of year 2019 total Federal tax withholding. To help avert any penalties or interest.
Retirement Contribution Levels and Medicare IRMA Amounts
While we have posted these levels earlier here, and we know the formatting was a bit wonky, we wanted to review them again directly from the Newsletter.
Here are last years most common levels along with whats up for 2021 – mostly unchanged
IRMA – Income Related Monthly Adjustment Amount – Medicare Part B Surcharge
“ If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago. This is the most recent tax return information provided to Social Security by the IRS. “
Here are the 2021 limits and adjustments:
We hope you enjoy … talk to you Next Quarter – Happy 2021 !!!
John A. Kvale CFA, CFP
January 2020 Podcast Video (Dogs Blooper at 2:55), Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our January 2020 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!
January – 2020 Video
Financial Planning Tip (s) –
Handy New Tax Rates and Table
Early in the month, here in this post, we review the new contribution levels, rates and maximums.
As suspected, we have reviewed this ourselves a ton of times already as 2019 and 2020 levels blur during conversations…
Homesteading Reminder
In our article here, we remind all of those who may have changed primary residence last year to check their homesteading provisions as this can be a significant saving, depending on your situation.
Examples
Helping Close Relatives or Others
During the month, we had multiple Financial Planning questions for close relatives and friends, which were asked, but some what hesitantly…
Wanting to reinforce the fact that we are glad to help, in this article we remind everyone we are not only flattered by the question, but VERY happy to help!
Tax Forms and Information Reminders
In another handy reference post, here, we discuss the tax form alphabet and more importantly, note the due dates and expected delivery times of the most common tax forms….
We know, it’s tax season again…not everyone’s fav…but we are trying to help make it easier.
Capital Market Comments
The markets finally took notice of the CoronaVirus. As scary as the virus is, modern day medicine and the actual fast spreading of the event and comprehension, unlike SARS which we remember well will likely help stem the fears and spread of the virus.
Have a Great Day – Talk to you at the end of February!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
street-cents
-96.808100
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Posted in General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Tax Related, Video
Tagged Corona Virus, Homestead, SARS, Tax Rates, Tax Schedules