Towerpoint Wealth No Comments

The Top 6 2024 Tax Season Questions, Answered! 02.23.2024

Subscribe To Trending Today 2023 Sacramento financial advisor

It’s that time – the 2024 tax season is upon us!

2024 tax season

As we embark on the 2024 tax season, many individuals and businesses are gearing up to tackle their financial obligations and maximize their tax benefits. With the ever-evolving landscape of tax laws and regulations, it’s essential to address the top 2024 tax season questions to both ensure compliance and optimize financial outcomes. From understanding filing statuses and deductions to navigating changes in tax brackets and credits, getting answers to these important questions can empower taxpayers to make informed decisions and minimize their tax burden. Let’s delve into the top tax season questions for 2024 and provide insightful answers to better guide YOU through this oftentimes painstaking and complex annual tax labyrinth.

Should I itemize or take the standard deduction?

When completing your tax return, you have the option to decrease your taxable income by either opting for the standard deduction or itemizing deductions.

2023 Standard Deduction Amounts

The standard deduction is a fixed amount determined by your filing status, while itemized deductions comprise expenses incurred in the previous year that can reduce your taxable income. Examples of itemized deductions, as outlined on the IRS website, include mortgage interest, real estate taxes, property taxes, disaster losses, state and local income or sales taxes, charitable donations, and certain medical and dental expenses.

Common Itemized Deductions 2024 Tax Season

Typically, individuals with higher incomes and substantial deductible expenses from the previous year may benefit from itemizing deductions rather than taking the standard deduction. For instance, owning rental property offers tax-deductible advantages that might surpass what one would receive through the standard deduction.

What is the best tax season software I should use?

Tax season software refers to specialized computer programs designed to assist individuals and businesses in preparing and filing their taxes with government authorities. These software applications streamline the often complex and time-consuming process of tax preparation by providing users with intuitive interfaces, step-by-step guidance, and automated calculations. Tax season software typically offers features such as importing financial data from various sources, identifying eligible deductions and credits, and generating accurate tax forms based on the user’s input.

Tax Season Software 2024

Moreover, tax season software often includes error-checking functionalities to help users identify and correct any mistakes before submitting their returns, reducing the risk of audits or penalties. Additionally, some software solutions offer electronic filing options, allowing users to submit their tax returns directly to tax authorities online, further expediting the process. Overall, tax season software serves as a valuable tool for individuals and businesses alike, helping them navigate the complexities of tax laws and regulations while maximizing their tax savings and ensuring compliance with legal requirements.

Earlier this year, CNBC Select meticulously assessed 12 tax season software options, scrutinizing them across various criteria such as pricing, user interface, expert tax support, and Better Business Bureau rating. Their recommended tax season software choices:

What happens if I miss the April 15 tax deadline for the 2024 tax season?

Missing the April 15 tax deadline can have various consequences depending on individual circumstances. Primarily, failing to file your taxes by the deadline typically results in penalties and interest accruing on any unpaid taxes owed. The penalty for late filing is usually a percentage of the unpaid taxes, increasing over time the longer the return remains outstanding. Additionally, interest compounds daily on any unpaid tax balance until it’s fully paid. These penalties and interest charges can significantly increase the total amount owed to the IRS, making it crucial to file your taxes as soon as possible, even if you can’t pay the full amount owed.

2024 Tax Season

Furthermore, missing the tax deadline may also lead to missed opportunities for tax refunds. If you are owed a refund but fail to file your return on time, you risk delaying the receipt of your refund. The IRS typically has a statute of limitations on claiming refunds, and filing after the deadline could result in forfeiting any refund you might be entitled to. Therefore, it’s essential to file your taxes promptly, even if you’re unable to meet the deadline, to avoid penalties, interest, and potential loss of refunds.

If you anticipate not being able to meet the April 15 tax deadline, you have the option to request an extension from the IRS. This extension grants you additional time to file your tax return, typically extending the deadline by six months to October 15. However, it’s crucial to note that an extension to file does not grant an extension to pay any taxes owed. Therefore, if you expect to owe taxes, it’s essential to estimate and pay as much as possible by the original deadline to minimize potential penalties and interest. Taking an extension can provide breathing room for gathering necessary documentation or seeking professional assistance to ensure accurate and timely tax filing.

If the April 15, 2024 tax season deadline passes, it’s imperative to proceed with filing your taxes promptly. Delaying can result in penalties, especially if you owe taxes, with the penalty increasing the longer you wait. However, if you’re due a tax refund and don’t owe any taxes, you won’t face penalties for filing late. Regardless, it’s advisable to complete your tax filing as soon as possible to avoid any potential complications or delays.

Can I deduct my student loan interest?

Deducting student loan interest can be a valuable tax benefit for many borrowers. The IRS allows eligible individuals to deduct up to $2,500 of interest paid on qualified student loans, even if they do not itemize deductions, except for married taxpayers filing separate returns. This deduction is available to taxpayers whose modified adjusted gross income (MAGI) falls below certain limits, which are subject to change each tax year. To qualify, the loan must have been taken out solely to pay qualified higher education expenses for yourself, your spouse, or a dependent, and the loan must be in your name or jointly with your spouse. Additionally, the loan must have been used to pay for expenses such as tuition, fees, room and board, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution.

student loan deduction rule 2023

It’s important to note that not all student loan interest is deductible. For example, interest on loans from family members or employer-sponsored retirement plans typically does not qualify for the deduction. Furthermore, the deduction begins to phase out for individuals with MAGI above certain thresholds, and it is entirely phased out for those with MAGI above the maximum limits set by the IRS. Thus, while deducting student loan interest can provide tax savings for many borrowers, it’s essential to understand the eligibility criteria and limitations to ensure compliance with IRS regulations.

What filing status should I choose?

The IRS categorizes tax filers based on their household status, which plays a significant role in determining their tax obligations. Choosing a filing status is crucial as it informs the IRS of the specific tax rules that apply to you. There are five primary filing statuses recognized by the IRS: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each status carries its own set of rules and criteria, impacting tax rates, standard deductions, and eligibility for various deductions and credits.

2023 irs tax brackets table

Your chosen filing status can significantly influence your tax liability and financial outcomes. For instance, married couples have the option to file jointly, combining their incomes and potentially benefiting from lower tax rates and higher deductions. Conversely, filing separately might be advantageous in certain situations, such as when one spouse has significant medical expenses that could be deductible based on their individual income. Additionally, qualifying as head of household can provide certain tax benefits, including a higher standard deduction and lower tax rates compared to filing as single or married filing separately. To assist taxpayers in selecting the most appropriate filing status, the IRS offers an interactive tool that guides individuals through the process, ensuring they choose the status that best aligns with their circumstances and maximizes potential tax advantages.

How do I know my 2023 IRS tax brackets table and tax rate?

For the 2023 tax year, the IRS tax brackets underwent adjustments to account for inflation. These brackets determine the marginal tax rates that individuals and households are subject to based on their taxable income. The tax brackets are structured progressively, meaning that higher levels of income are taxed at higher rates. In 2023, the tax rates range from 10% to 37%, with seven different brackets based on filing status and income level. The income thresholds for each bracket vary depending on whether the taxpayer is single, married filing jointly, married filing separately, or filing as head of household. Taxpayers should consult the IRS guidelines or a tax professional to determine their specific tax bracket and corresponding tax rate for the 2023 tax year.

The 2023 IRS tax brackets table:

2023 irs tax brackets table | 2023 irs tax brackets table information

Additionally, understanding the 2023 IRS tax brackets table is essential for tax planning and financial decision-making throughout the year. By knowing which tax bracket they fall into, individuals can estimate their tax liability and take proactive steps to minimize their tax burden, such as maximizing deductions and credits or adjusting their withholding amounts. Taxpayers should stay informed about any changes to the tax brackets and related regulations to ensure compliance with tax laws and optimize their financial strategies in light of evolving tax policies.

At Towerpoint Wealth, we believe that navigating the complexities of tax season can be daunting, but having answers to the top 2024 tax season questions can alleviate much of the stress and uncertainty. Whether it’s understanding filing statuses, deductions, credits, or the latest 2023 IRS tax brackets table, having clarity on these topics empowers taxpayers to make informed decisions and maximize their tax savings. By seeking out reliable information and guidance, individuals and businesses can approach tax season with confidence, ensuring compliance with tax laws while optimizing their financial outcomes. Remember, if you have any further questions or need assistance, consulting with a tax professional or utilizing reputable resources can provide the clarity and assistance needed to navigate tax season successfully.

Would you like to discuss your own situation further with us, or learn more about our wealth management philosophy and how we help clients build and protect their wealth? Curious how we utilize and integrate digital assets for some of our clients as part of a properly-diversified investment portfolio?

We encourage you to schedule an initial 20-minute “Ask Anything” discovery call with us, as we welcome beginning to get to know you and learning more about your unique personal and financial circumstances.

Click the Wealth Management Philosophy banner image below to learn more about how we help our clients grow and protect their net worth.

Wealth Management Philosophy page on Towerpoint Wealth

In Case You Missed it TPW

Happy 1st Birthday, Thompson!

This past Sunday the whole Towerpoint Wealth team joined our Partner, Wealth Advisor, Jonathan LaTurner, and his wife Katie, in helping the proud parents celebrate their son Thompson’s 1st birthday at Nitty’s Cider in East Sac!

We all had a blast, thank you for the invitation Thompson! 🎉🥳🎊

Thompson Birthday Party Towerpoint Wealth

Jonathan Joe Steve Wealth Advisor Teambuilding

What is happening with the Towerpoint Wealth family? Click the banner below to find out!

Follow Us on Social Media

Trending Today Towerpoint Tube | Independent financial advisor Sacramento

Minimizing Common Investing Mistakes

Minimizing common investing mistakes is extremely important when working to build and protect your wealth and net worth and get your money’s best performance. Do you know what the 20 most common investing mistakes are?

Click the thumbnail image below for Part 2 of our series!

We are hopeful you will enjoy these educational videos, and encourage you to share this valuable information / share the video links with any colleagues or friends who would benefit from watching them.

Click the image below to browse our robust library of other wealth-building and wealth-protecting educational videos.

Towerpoint Wealth You Tube

Chart Of The Week Trending Today

Returns to Recover Losses

Protecting your downside and minimizing losses during a temporary bear market / market pullback is just as, if not MORE important, than striving for outsized gains.

Thanks to The Investing Beast for the illustration!

Return recover losses 2023

In light of how unsettled the economy and markets are, are you concerned or worried about the bonds in your portfolio, and/or the overall level of risk you are taking in your portfolio? 

Message us to discuss your circumstances.

Our Community, Trending Today Towerpoint Wealth

While the global 24/7 news cycle churns, twists, and turns, here are a number of fun, local trending events of note: 

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to contact us at any time, or call or email us (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

Sacramento Financial Advisor Towerpoint Wealth Team

Joseph Eschleman
Certified Investment Management Analyst, CIMA®

Jonathan W. LaTurner
Wealth Advisor

Steve Pitchford
CPA, Certified Financial Planner®

Lori A. Heppner
Director of Operations

Nathan P. Billigmeier
Director of Research and Analytics

Michelle Venezia
Client Service Specialist

Luis Barrera
Marketing Specialist

 Megan M. Miller, EA
Associate Wealth Advisor

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!

Towerpoint Wealth No Comments

5 of the Latest Innovative Financial Tools! 1.12.2024

Subscribe To Trending Today 2023 Sacramento financial advisor

As markets, regulations, and technologies continue to advance, embracing innovative financial tools becomes not only a choice, but a strategic imperative for those aspiring to build and protect wealth and to achieve and sustain financial success.

Like using a typewriter in a smartphone world, utilizing old technology instead of new wealth management tools may be quaint, but won’t do a great job of helping you navigate the fast-paced world of modern finance.

Wealth Management Tools and Financial Tools

Understanding, accepting, and perhaps even adopting these new financial tools not only will empower you with real-time insights and automation, but also position you to better adapt to swiftly moving market changes, fostering a proactive and informed approach to financial decision-making.

Tax Optimization Software

Along with costs and expenses, income taxes can represent a significant drag on your portfolio. Fortunately, taxes are a “necessary evil” that we do have some control over, especially if we use the right financial tools.

At Towerpoint Wealth, we utilize Bloomberg BNA Income Tax Planner to generate and compare multiple economic, investment, and tax scenarios, helping us help our clients align their financial moves with tax efficiency, and showcase the most advantageous tax minimization strategies available.

Tax optimization software also transforms the labyrinthine tax code into a navigable roadmap, identifying strategic deductions, credits, and exemptions that might otherwise slip through the cracks. This financial tool helps us help clients swiftly adapt to changes in tax laws, and enables us to stay ahead of regulatory shifts and capitalize on new opportunities, all while saving time and reducing the risk of costly errors.

Fully Customized ESG and Socially-Responsible Portfolios

Most investors are familiar with ESG (environmental, social, & governance) and socially-responsible investment vehicles such as mutual funds and exchange-traded funds (ETFs). However, unlike the one-size fits all approach of these products, Towerpoint Wealth utilizes a customized separately managed account (SMA) via our partnership with Ethic Investments, helping us provide our clients with a more tailored socially-responsible and ESG portfolio via direct ownership of individual companies that qualify as ESG-friendly based on customized screening criteria.

This ESG SMA financial tool grants us greater control and customization over client portfolios, as this level of specificity allows investors to align their values with their investments more precisely. How? They have the ability to exclude or include specific companies (read: stocks) based on their custom ESG criteria.

Digital Assets/Cryptocurrency Separately Managed Accounts

Similar to the ESG SMAs discussed above, a digital asset/crypto SMA is a wealth management tool that affords you the ability to directly own either or both Bitcoin and Ethereum, and to securely hold these crypto positions in cold storage. At Towerpoint Wealth, we have partnered with Eaglebrook Advisors to help us help our clients gain direct access to the digital asset and crypto markets. Unlike a Bitcoin ETF or private fund, Eaglebrook’s tax optimization financial tools and strategies find opportunities to reduce or defer capital gains tax liability, provide higher levels of customization, and also incorporate cutting-edge security measures, addressing one of the primary concerns in the digital asset space, instilling confidence in an environment often plagued by security uncertainties.

Personal Finance Dashboards with Real-Time Portfolio Analytics

Personal financial dashboards, exemplified by platforms like Black Diamond utilized by Towerpoint Wealth clients, are financial tools that have helped to revolutionize the way investors oversee and manage their comprehensive financial landscapes. These dashboards consolidate an array of financial information, providing users with a comprehensive view of their assets, liabilities, investments, and spending patterns in one centralized interface.

Financial Tools and Wealth Management Tools
Wealth Management and Financial Tools

Beyond mere aggregation, personal financial dashboards such as Black Diamond offer advanced analytical tools, allowing users to delve into the many nuances and details of their investment portfolios. Investors can track performance metrics, assess risk exposure, and simulate various scenarios to gauge the potential impact on their financial goals. The 24/7 real-time nature of these dashboards enhances financial agility, enabling users to monitor and adapt swiftly to market and economic changes, and make proactive adjustments to their strategies.

Financial News Aggregators

Financial news aggregators are indispensable wealth management tools for the information age, consolidating a myriad of financial news sources into a single, easily digestible platform. These platforms, like Harkster, PiQSuite.com, The Fly On the Wall, and even Yahoo Finance, curate breaking news, market trends, and economic analyses, offering users a comprehensive snapshot of the financial landscape. By amalgamating information from diverse sources, financial news aggregators provide a holistic understanding of market dynamics, allowing for more informed decision-making.

One of the key advantages of financial news aggregators lies in their ability to save time and streamline information consumption. Instead of navigating multiple websites or sifting through various publications, users can access a centralized hub that organizes news based on relevance and importance. These platforms often include customizable features, that enable users to tailor their news feeds to specific industries, companies, or market segments, further enhancing efficiency.

At Towerpoint Wealth, we believe that embracing innovative financial tools and wealth management tools is not just a choice but a strategic imperative in the ever-evolving landscape of personal finance. These tools serve as your ally as you work and plan to properly coordinate all of your financial affairs, not merely keeping pace but leading the way toward smarter, more informed, and ultimately more successful financial decisions.

Would you like to discuss your own situation further with us, or learn more about our wealth management philosophy and how we help clients build and protect their wealth? Curious how we utilize and integrate digital assets for some of our clients as part of a properly-diversified investment portfolio?

We encourage you to schedule an initial 20-minute discovery call with us, as we welcome learning more about you and your unique circumstances and beginning to get to know you.

Click the Wealth Management Philosophy banner image below to learn more about how we help our clients grow and protect their net worth.

Wealth Management Philosophy page on Towerpoint Wealth

In Case You Missed it TPW

It is a Boy!!!

Happy New Year and a big congratulations go out to our Director of Research and Analytics, Nathan Billigmeier, and his wife, Jessica Billigmeier, on their new baby boy, Caleb!

Nathan Jessica Billigmeier Baby

Caleb was born 1/3/2024 at 4:20AM, 6lbs., 15oz., 19 in. Everyone is doing great, and Caleb’s brothers, Ethan and Grayson, are loving having a new baby brother!

What is happening with the Towerpoint Wealth family? Click the banner below to find out!

Follow Us on Social Media

Trending Today Towerpoint Tube | Independent financial advisor Sacramento


Minimizing Common Investing Mistakes

Minimizing common investing mistakes is extremely important when working to build and protect your wealth and net worth and get your money’s best performance. Do you know what the 20 most common investing mistakes are?

Click the thumbnail image below for Part 1 of our series!

Avoid these 20 investing mistakes

We are hopeful you will enjoy these educational videos, and encourage you to share this valuable information / share the video links with any colleagues or friends who would benefit from watching them.

Click the image below to browse our robust library of other wealth-building and wealth-protecting educational videos.

Towerpoint Wealth You Tube

TPW Taxes Today | Trending Today

2023 Form 1099s

What exactly is a Form 1099, why can they be so frustrating to process, and how do you manage the problem of receiving an amended 1099 in March or April (Hint – don’t file your taxes too soon!)?

CLICK HERE or the thumbnail image below to read an excellent guide written by Steve Pitchford, our Director of Tax and Financial Planning, about to handle the frustrations of Form 1099 with aplomb and alacrity!

Tax Form 1099

Have questions about your upcoming 2023 tax return?

Would you like to review an old tax return for missed opportunities?

Click the banner below to message Steve Pitchford, Steve Pitchford, Certified Financial Planner.

Steve Pitchford, CPA, CFP® Director of Tax and Certified Financial Planning

Chart Of The Week Trending Today

Increasing the Probability of Positive Returns

Investing in the stock market can be volatile. For this reason, we believe it is important to keep proper perspective when stocks rise and fall over shorter periods of time. History has repeatedly shown that the odds of achieving a positive return are dramatically increased the longer the investment time horizon. Thanks to First Trust for the caption and the illustration!

Increasing Probability of Positive Returns

In light of how unsettled the economy and markets are, are you concerned or worried about the bonds in your portfolio, and/or the overall level of risk you are taking in your portfolio? 

Message us to discuss your circumstances.

Our Community, Trending Today Towerpoint Wealth

While the global 24/7 news cycle churns, twists, and turns, here are a number of fun, local trending events of note: 

As always, we sincerely value our relationships and partnerships with each of you, as well as your trust and confidence in us here at Towerpoint Wealth. We encourage you to contact us at any time, or call or email us (916-405-9140, info@towerpointwealth.com) with any questions, concerns, or needs you may have. The world continues to be an unsettled and complicated place, and we are here to help you properly plan for and make sense of it.

 Joseph EschlemanJonathanSteveLoriNathanMichelleLuis, and Megan

Sacramento Financial Advisor Towerpoint Wealth Team

We enjoy social media, and are actively growing our online community!

Follow us on any of these platforms, message us there and let us know your favorite charity.
We will happily donate $10 to it!