Tax Talk

Tax Talk: Big Beautiful Tax Bill update!.

The IRS has new updates for tax year 2026, primarily driven by the “One, Big, Beautiful Bill”, including higher contribution limits for 401(k)s increased standard deductions , new deductions for car loan interest and tips, a higher IRA contribution limit , electronic-only refunds , a higher SALT cap and car loan interest deduction, are in effect for 2025 returns filed in 2026.

Some of the key Changes for Tax Year will be :

Retirement: 401(k) limit rises to $24,500; IRA limit to $7,500 ($8,600 for 50+).

New “Trump Accounts” for children under 18 (pilot program).

Standard Deduction: Increases to roughly $16,100 (single) and $32,200 (joint).

New Deductions: For car loan interest and a bonus deduction for seniors (65+).

Business: Standard mileage rate for business use increases to 72.5 cents/mile.

SALT Deduction: Cap increased to $40,000 for most, with potential income-based reductions.

Form 1099-K Threshold: Reporting threshold reset to $20,000 and 200 transactions.

Electronic Refunds: All federal refunds are now electronic deposits only.

IRS Portal: A new portal for e-filing (IRIS) is available, and the e-file threshold for businesses is lowered to 10 returns.

ERC Claims: Businesses with pending Employee Retention Credit claims can use a withdrawal program.

If you need specific assistance, from budgeting, to taxes, to investments and retirement, feel free to reach out!. You get easy access to our team of Certified Financial Planners®, who can answer your questions and provide guidance

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 30th year as a full service Investment Planning & Management firm . Anthony is also owner of Rivieccio OnlineTax Advisors, a virtual only Income tax preparation & planning firm, opened in 2021.

Mr. Rivieccio pens three financial article called “Money Talk” ” Tax Talk” & ” Financial Focus”. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The New York Parrot, The Bronx News, thisisthebronX.info , The Bronx Chronicle , The Bronx Post & The Parkchester Times.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk : A New & Unique Tax Credit for 2027

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

New Internal Revenue Service (IRS) guidance has laid the groundwork for a significant education-related tax credit effective in 2027.

According to an IRS announcement, the Treasury will allow states to sign up early for a new program under a big federal tax law. This program gives people a federal tax credit when they donate money to organizations that provide scholarships.

By making this “advance election,” states can get ready to offer this benefit sooner, so individuals who contribute to these scholarship programs can reduce their federal taxes.

The program, created under the One Big Beautiful Bill Act (OBBBA), aims to encourage private contributions to Scholarship Granting Organizations (SGOs) serving low- and middle-income K-12 students.

With up to $1,700 in nonrefundable federal tax credits available per taxpayer, the new measure stands to influence both individual and business tax planning, as well as state education policy.

Access to the credit relies on state decisions, which could generate disparities in availability across the country.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Tax moves to consider before the end of the year

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

As we approach the end of the year, it’s important to make sure your tax situation is in order. There are plenty of year-end tax moves you must make by December 31 for them to count toward this year.

i guarantee if you makes these moves before the end of the year you can help lower your tax bill in April and better set you up for the future.

*Max out your workplace and individual retirement plan contributions for 2025, including making any catch-up contributions you’re eligible for.

*Evaluate your tax situation to determine whether a Roth conversion is a good idea, and then make sure to complete the conversion by December 31.

*Harvest your tax losses to help lower your capital gains tax liability, but make sure to avoid wash sales.

*If you’re 73 or older, take your RMDs for the year. If you aren’t sure how much you’re required to take, use the IRS worksheet or an online RMD calculator.

*Use your FSA dollars by December 31 or, if your plan allows it, set your carryover strategy. Make sure to elect next year’s FSA deferrals while you’re at it.

*Check your tax withholding to make sure you’ve paid enough in income taxes for 2025. If you’ve underpaid your taxes, make an estimated tax payment to avoid penalties and interest.

*If applicable, make a 529 plan contribution by the end of the year to qualify for your state’s income tax deduction or credit.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Your Tax Refund MIGHT go up next year?

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

Every year in October, the IRS unveils its revised tax brackets and rates, and last week, the 2026 edition rolled out. These annual adjustments are tied to inflation, and since that’s still going up, next year, you’ll earn more before the next slice of your paycheck gets taxed at a higher rate.

With a 4% bump for the lowest brackets and 2.3% for higher ones, filers get a slightly bigger adjustment than last year. For individuals, the 37% top rate now kicks in at $640,600; for couples filing jointly, it’s $768,700, about $17,000 higher than before.

The standard deduction is also inching up — $16,100 for single filers and $32,200 for joint filers — so most Americans will owe a bit less overall, maybe a few hundred bucks depending on income. The 0% capital-gains rate will now apply up to $49,450 for singles and $98,900 for couples. The estate tax exclusion is jumping to $15 million, up from $13.99 million — thanks in part to the Trump administration’s Big Beautiful Bill, which extended and expanded key provisions of the 2017 tax cuts. That tweak alone preserves a six-figure break for the wealthiest households

What does it all mean? Talk to your Tax Professional to discuss your file specifically but generally speaking , most filers will be a slight increase in their tax refunds

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Charity! Can I really

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

Charity! It’s a lot different today than in the 80s and 90s

Today, charity of course includes your local place of worship but today it also includes any licenced non for profit organization; from The United Way to the Boy Scouts ( for examples).

Charity today is not just ” money” it is also ” non cash ” donations, like clothing, furniture , I even had a client donate his car.

Recently a Client asked me: “Can my donation actually save me real money?”

The answer is yes… if they do it right.

With the right strategy, clients can support the causes they love and lower their tax bill.

Here’s what to keep in mind:

Maximize deductions: Cash donations are generally deductible up to 60% of AGI, while gifts of stock or property can deliver even bigger tax advantages.

Document everything: The IRS requires proper receipts and records for every gift, no exceptions.

Use advanced tools: Donor-advised funds let clients make a contribution, take the deduction now, and choose where the funds go later.

With some planning, you can support the causes that matter most to you and keep more of your money where it belongs out of the IRS’s hands.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Big Beautiful Tax Bill-- I want a Big Refund next year

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

Taxpayers have something to gain from the newly-passed One Big Beautiful Bill (BBB) by The Trump administration . The BBB not only extends many of the expiring provisions from the 2017 Tax Cuts and Jobs Act, but it also includes several Trump campaign promises.

Higher refunds, lower tax rates and expanded deductions and credits are all on the table. Here are several ways you can take advantage

HAVE CHILDREN OR DEPENDENTS?

There is the possibility of receiving greater refunds with enhanced tax credits for dependents and childcare, If you have children or dependents, check eligibility for the enhanced Child Tax Credit and Dependent Care Credit.

Under the BBB, the maximum child tax credit increased from $2,000 to $2,200 per qualifying child, and increased the child and dependent care credit from 35% to 50% of eligible care expenses. Income thresholds have also been adjusted.

TIPS & OVERTIME

There will be no changes to certain information returns or withholding tables.

Thus, this means Americans will continue to pay taxes on tips and overtime, but will receive them back as part of their refund.

EXTRA STANDARD DEDUCTIBILITY

The standard deduction increases by $750 ($1,500 for married couples) starting in 2025, Most taxpayers claim the standard deduction, so the increased standard deduction will provide broad relief .

Because the standard deduction reduces the amount of income subject to tax, this increase means more earnings are shielded from taxation. For many middle-income households, that translates into a lower overall tax bill without the need to itemize deductions.

Taxpayers who claim the standard deduction can deduct up to $1,000 ($2,000 for married couples) for cash contributions to charity starting in 2026, Previously, this was only available to those who itemized.

There are over 800 changes in the BBB. This year , more than ever, speak to someone about ” Tax Planning” to lower your tax liability and attempt to maximize your tax refund

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Big Beautiful Tax Bill-- Medical Savings

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

So , with our new beautiful

tax bill what is the best way to save taxes on medical expenses ?

Well, you can still apply the old way, by itemizing your medical expenses . Note, the tax savings will be your tax bracket dollar. So in most cases the tax savings will be around 25%.

Thanks to new provisions in President Donald Trump’s recently signed tax and spending law, more people will be able to benefit from the triple tax-advantaged health savings account, or HSA. The law, dubbed the “One Big Beautiful Bill Act” by Trump, opens up HSAs to tens of millions more Americans by allowing more Affordable Care Act insurance plans, Direct Primary Care arrangements, and plans with telehealth coverage.

Unlike, itemizing deductions, HSA plans are a favorite savings vehicle among financial advisers because contributions are tax-free, money grows tax-free, and if used for a qualifying expense, withdrawals are tax-free. So in short, it is a dollar for dollar or 100% deduction.

The HSA changes made in the law represent the most significant HSA expansion in nearly two decades. Individuals, employers, and brokers should start planning during the 2025 open enrollment period to take full advantage of the new rules.

Starting today, Bronze and catastrophic plans will be HSA eligible.

Other new plans meet HSA eligibility, too

Americans who participate in Direct Primary Care arrangements, defined as arrangements costing up to $150 monthly for individuals and $300 for families, can fund an HSA next year.

HDHPs that offer cover telehealth without meeting deductibles or copays will no longer be disqualified from HSAs, retroactive to plans from Jan. 1. In 2022, 30% of adults in the United States had used telemedicine in the past year, according to the National Center for Health Statistics.

Other advantages include:

Unlike a Flexible Spending Account, HSAs aren’t “use it or lose it.” The money is rolled over year after year and never expires.

*HSA funds can be invested. Potentially, those savings can grow substantially to help pay future healthcare costs, including those in retirement.

After age 65, funds can be withdrawn for any reason without penalty, although nonmedical withdrawals would be subject to income tax.

So, if you have Medical Expenses , consider wisely which move to make. On your taxes the decision, for medical expenses, can be big & beautiful

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Big Beautiful Tax Bill-- Seniors rejoice!

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

You know, in reality this tax bill sucks for a number of reasons. If I could use one word: “Temporary”. Another discouraging point is , NO , this is NOT the bill that eliminates Social Security Taxes ( but more on that below) .

So Seniors listen carefully, this Senior deduction is time limited– and it could save you on some Social Security.

The New ” Senior ” deduction

This new deduction is only available for a limited three-year window, starting with 2025 taxes and phasing out after the 2028 tax year.

To qualify, be sure to meet these criteria:

Age: You must be at least 65 years old.
Income: Your modified adjusted gross income (MAGI) must be less than $175,000 if filing individually. Married couples filing jointly can both claim the deduction if both spouses are 65 or older and their combined MAGI is less than $250,000.
Eligible individuals can deduct up to $6,000, and married couples who both qualify can deduct up to $12,000.

Is there a catch? Of course !

This deduction starts to phase out as income rises above certain levels:

* $75,000 for individuals

*$150,000 for joint filers

Now, you might have heard that this is the No Tax on Social Security bill? Yes & No

To understand that…

Single filers with combined income between $25,000 and $34,000 pay tax on up to 50% of benefits.
Joint filers between $32,000 and $44,000 face the same.
Above those ranges, up to 85% of benefits may be taxable.
Only filers below $25,000 (single) or $32,000 (joint) avoid taxation on Social Security.

While not permanent, this new deduction delivers meaningful short-term tax relief for millions of seniors, especially those on fixed or limited incomes.

With the Standard deduction ( for singles ) is $15,000 the $6,000, brings you automatic deductibility of $21,000. Therefore , if you make more than $4,000 ( $25,000 single SS limit) of ANY reported income, your social security could be affected.

Seniors, rejoice!

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: So will the big, beautiful tax bill work for you ?

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

So, in short terms, who will be affected?

Seniors, students, taxpayers, children, parents, low-income Americans and just about everyone else.

TAXPAYERS

Many taxpayers would continue to benefit from the array of individual income tax cuts from the 2017 Trump tax package that are set to expire at year’s end. The current bill would permanently extend essentially all those tax breaks, including the lower individual rates and a near-doubling of the standard deduction.

But a lot of those taxpayers may not notice this tax relief because it would be a continuation of provisions that have been in place since the 2017 law was enacted. Some, however, may benefit from the larger child tax credit and temporary increase in the cap on state and local tax deductions, as well as other new tax breaks in the bill.

SENIORS

Senior citizens would receive a $6,000 boost to their standard deduction from 2025 through 2028. The benefit would start to phase out for individuals with incomes of more than $75,000 and couples with incomes double that amount.

CAR BUYERS

Good news for anyone buying a new American-made car with a loan: This bill will allow up to $10,000 in interest to be deducted from taxable income.

PARENTS

Many parents would get a larger tax break: The legislation would permanently beef up the child tax credit to $2,200 per kid, up from the current $2,000.

BABIES

On a three-year pilot program, every American baby born between 2025 and 2028 would get a $1,000 nest egg from the government to be invested in an index fund. Parents could then add $5,000 each year to those accounts and watch the interest grow during childhood. No deductions would be allowed until the child turns 18. Originally called a “baby bonus,” or a “MAGA account,” the name was changed to “Trump accounts” over the course of this year.

OVERTIME & TIP WORKERS

Any workers who receive tips or overtime compensation would get a tax break through 2028. Employees who work in jobs that traditionally receive tips could deduct up to $25,000 in tip income from their federal income taxes, while workers who receive overtime could deduct up to $12,500 of that extra pay.

So far , so good, right? Maybe not .

People on Medicaid:

For many Medicaid enrollees, the biggest impact would be the new work requirement. Certain able-bodied Americans ages 19 to 64 who are enrolled through the Medicaid expansion would have to work, volunteer, attend school or participate in job training at least 80 hours a month. The mandate would also apply to parents of children ages 14 and older.

SNAP receiptants

More Americans who receive food stamps would have to work to keep their benefits. The bill would broaden the existing work mandate to enrollees ages 55 to 64 and parents of children ages 14 and older, as well as to veterans, former foster youth and people experiencing homelessness.

Affordable Care Act policies:

Americans looking for coverage on the Obamacare exchanges could have a tougher time enrolling in plans and receiving federal subsidies to help pay their premiums. The bill would increase verification requirements and would effectively end automatic reenrollment. The CBO estimates that millions of people would lose their Obamacare coverage.

Student loans:

New caps would be placed on the amount students can borrow in federal student loans for graduate school and how much parents can borrow to help pay students’ tuition. There would be fewer opportunities for deferments or forbearance. There would also be limits on lending for part-time students and a much more limited set of repayment options, veering away from the loan forgiveness programs of the Biden era.

Private colleges

A primary focus of the bill is tax cuts, but not everyone who pays taxes will pay less. Private universities are generally tax-exempt, although they do pay a 1.4% tax on income from their endowments. This bill would jack up that endowment income tax to a top rate of 8% for colleges whose endowments exceed $2 million per enrolled student. We’re talking about schools like Harvard, Yale, Stanford, MIT and Princeton.

Solar and wind tax credits:

The bill speeds up the end of tax incentives for renewable energy projects to 2027.

immigrants

The bill would limit eligibility for federal benefits — including food stamps, Medicaid, Affordable Care Act premium subsidies and Medicare — to a smaller set of noncitizens.

Some immigrants, such as refugees, asylees and victims of domestic violence and sex trafficking, would no longer qualify.

So, it seems like not everyone wins ! The defining factor:

State governments: would have to pick up the slack

State lawmakers would likely have to make tough decisions since they would face massive reductions in federal support for Medicaid and food stamps. They could try to limit the cost of the programs by cutting benefits or eligibility, but they might also decide to try to save money in other areas, such as education or infrastructure.

The bill would reduce the amount of taxes that state and local governments can levy on providers, notably hospitals, which is a key source of funding for states. Also, it would require many states to start paying for part of the food stamp benefits and shoulder more of the administrative costs.

So, do you win? Or lose?

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Can we afford more Tax Cuts?

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA
Donald Trump is announcing that he would like ” an extension” of his 2017 tax cuts. He is also suggesting to create, ” new ones”.

Can we afford it?

His current plan would spend more than $200 billion on tax cuts this year, in addition to simply extending tax cuts enacted in 2017 that are set to expire at the end of this year and would likely go unnoticed by most taxpayers.

For example, An enlarged Child Tax Credit, a supersized break for state and local tax (SALT) deductions and a slew of other goodies would be made retroactively available for this tax year . Businesses too would receive a bevy of backdated tax cuts.
Almost two-thirds of filers are in line to receive, on average, an extra $1,200 next year, the nonpartisan Tax Policy Center.

Another example, a plan to raise the cap on state and local tax deductions to $40,000, from $10,000, would cost $33 billion in 2025 alone, many experts say.

Aside from increasing the child credit and sweetening the SALT deduction, Republicans plan to boost the standard deduction by $2,000 for couples, the President is also creating a string of new breaks: a $10,000 deduction for auto-loan interest, a $4,000-per-person deduction for seniors, a $300 break for people who give to charity, deductions for overtime pay and income from tips, and a new tax-preferred investment account for children.

Most people would see their taxes go down under the GOP plan, with those in the middle of the income spectrum receiving an average of $830, the Tax Policy Center says. Low-income people projected to benefit would get relatively little, about $250, and the top 20 percent of earners would get about $2,500.

Those averages, though, obscure the fact that benefits would vary widely, even among taxpayers with similar incomes, because so many of the new breaks are narrowly targeted at specific groups.

Raising the SALT cap to $40,000 would save someone in the top 1 percent of earners about $4,000, TPC estimates. Parents with two kids would see an additional $1,000 from the child credit increase. The auto-loan interest deduction would be worth as much as $1,200 to a couple making $50,000.

Altogether, tax cuts for individuals would run about $140 billion this year, according to TPC.

So , now, there are only two ways to make that up:

Hope that the tax cuts, spur enough economic growth to make up some or all of the difference OR spending cuts 👀

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: No Tax on Tips- Don't believe the hype

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

Donald Trump, is suggesting a tax exemption on ” No Tax on Tips-“a selling point to working-class voters in a broader budget bill .

Eliminating taxes on tips has broad support from the public, with around 70%- 75% of voters across party lines supporting the move, according to several polls last year.

Tipped workers make up about 2.5% of the workforce, and about 12% of hourly workers clock some overtime each year, according to an analysis by the Yale Budget Lab.

As many as 40% of tipped workers already don’t make enough money to have to pay federal income tax on any of their earnings, the Yale Budget Lab found.

“This is really a narrow segment of the labor force that is going to see any benefit at all from this — but that does limit its cost,” said Ernie Tedeschi, director of economics at the Yale Budget Lab, who was chief economist at the White House Council of Economic Advisers during the Biden administration. “I think a big reason why Congress is embracing it is because this is one of the lower-cost ideas, and it’s a very high-profile win. You can say that you are helping low-wage workers, even if it’s not that many workers.”

The tax exemption would apply only to federal income tax, so workers would still have to pay Social Security and Medicare taxes on their income, along with any state or local taxes.

The Tax exemption is structured as a deduction that workers would claim when they filed their taxes the following year. That means employers would still withhold money for tax payments on tips or overtime through their regular paychecks, but the income would be deductible from their final tax bills when they filed their annual taxes.

It would also exclude higher-income earners making more than $160,000, and it would limit the amount of tips that could be deducted from a yearly tax return to $25,000.

The tax break on tips would reduce tax collections by $40 billion, according to the Congressional Budget Office.

Under the current legislation, the tax breaks would expire in 2028 — which would create political pressure to extend them amid that year’s presidential election.

Now that’s the ” mucky muck ” part. Let me give you the economic effect

If one makes $1 in overtime , according to the above , you still have to pay taxes on it. That would be at your current tax bracket ( on avg 25 %.) So 75 cents in your pocket, 25 cents to taxes

Now , again as the law says above , in the following tax year , you claim a deduction- not an exemption, not a credit, but a deduction . The difference: an exemption or credit is a dollar for dollar deduction. Any ” regular deductions” are based on your tax bracket. So if you deduct that 25 cents times x your tax bracket (25%) your real savings is only 6 cents of that dollar — the other 19 cents is going back to the Government coffers.

So to summarize, for every $1 tipped, you’ll get 25 cents taxed – and after the deduction – you’ll get 6 cents back. So figure the original $1 tip earned but you received a total after deduction of 81 cents or an after tax bracket of 19% vs 25 %

So look out for the screams of: This bill saved you 24. % on taxes (6/25).

Don’t believe the hype !

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Trump 2.0- A whole New Tax World Part 2

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

In part 1, we learned what the Trump 2017 are in general and that the 2017 Trump tax cuts actually expire! In 2025! Just in time for next year’s Tax season

So , since January of 2025…..

At the end of February, the House of Representatives passed a budget calling for up to $4.5 trillion in tax cuts over 10 years.

Now, the haggling begins.

Many of the tax cuts from the 2017 tax bill, which passed during President Trump’s first term, are set to expire at the end of this year. He wants them renewed, and Congress has shown little appetite for crossing him.

Extending those provisions would eat up most of that $4.5 trillion

So the Extended Proposals are:

Provisions From Previous Bills That Are Set to Expire at the End of 2025

*Tax Brackets

The 2017 tax law reset — and lowered — the percentage of income that most people pay in federal income taxes. You can see where you stand currently on the Internal Revenue Service’s website; the Tax Foundation’s website has a 2017 table, which uses dollar figures that are not adjusted for the inflation that has occurred since then. Some of that information is below.

If no new bill is passed to extend these cuts, the percentages will revert to where they were in 2017, with new income bands in each tax bracket.

Individual income tax rates: The TCJA lowered marginal income tax rates throughout much of the income distribution. For example, the TCJA cut the top marginal tax rate from 39.6% to 37%. These rates will increase to pre-2017 levels if the TCJA expires.

Tax Increases if law is not changed,:

Lowest Quintile $130 −0.6

Second Quintile $480 −1.0

Middle Quintile $1,030 −1.3

Fourth Quintile $1,930 −1.4

Top Quintile $8,920 −2.2

All $1,900 −1.8

Top 1% $70,350 −3.1

Top 0.1% $278,240 −2.9

Source: Authors’ calculations based on Urban-Brookings Tax Policy Center estimates

Note: The maximum income for the bottom 4 quintiles are $33,900, $65,100, $116,400 and $212,300. The top 1% have income of $1,092,400 and over. The top 0.1% have income of $5,071,700 and over.

*Standard deduction

The deduction that all taxpayers are generally eligible for (and actually use, unless they itemize their deductions) nearly doubled in the wake of the 2017 tax law. As a result, fewer people itemized their deductions, which made it simpler to file their returns.

Without any new legislation, the standard deduction would shrink dramatically, though other tax breaks might return to their more generous levels from 2017 and earlier.

Standard deduction: The TCJA increased the standard deduction and eliminated personal exemptions. For example, if the TCJA expires as under current law, the standard deduction for a married couple will be approximately $16,525 in 2026, while the personal exemption will be about $5,275. If this provision of the TCJA were extended through 2026, the standard deduction would be roughly $30,725, and the personal exemption would be zero.

*SALT’ — State and Local Tax Deduction

The 2017 legislation placed a $10,000 cap on the amount of state and local taxes you could deduct on your federal tax return when itemizing your deductions. This posed a big problem for higher-income people in states and local communities with high taxes of their own, since many of those people pay five figures in state income taxes and an additional five figures in property taxes.

Without any change, the cap will expire. One possibility to watch for: a new, higher cap that satisfies members of Congress from both parties whose constituents are not happy with the $10,000 limit.

*State and local tax (SALT) deduction: The TCJA imposed a $10,000 cap on the deductibility of state and local taxes (SALT). If this provision of the TCJA expires, all state and local property taxes and income taxes (or sales taxes in states without income taxes) will be deductible, primarily benefiting high-income taxpayers in high-tax states.

*Child Tax Credit

The 2017 law doubled the child tax credit to $2,000 for each qualifying child for joint filers earning up to $400,000 (and $200,000 for single filers). People with higher incomes may be able to claim a portion of it.

Up to $1,700 of that can be delivered in the form of a refundable credit, which means taxpayers can receive money back even if they have no tax liability. (Taxpayers may also reduce their tax bill by up to $500 for other dependents who are not children.)

Without any action, the credit — as well as the refundable portion — will revert to a maximum of $1,000 per child for joint filers who earn up to $110,000 (or $75,000 for single filers).

Child Tax Credit: The TCJA increased the tax credit for each child under 17 from $1,000 to $2,000, and that is not adjusted for inflation. The maximum credit that can be refunded increased from $1,000 to $1,400 per child in 2018; that is adjusted for inflation and is set at $1,700 in 2024. The TCJA also increased the income thresholds at which the credit phases out. The child tax credit will fall back to $1,000 if the TCJA expires, which would make the real value of the credit about 25% lower than it was in 2017.

*Qualified Business Income

The 2017 law created a new system whereby many self-employed people and small-business owners could deduct up to 20 percent of their business income.

Without an extension, this opportunity will disappear. Any extension could include modifications.

Deduction for small business income: The TCJA provided a 20% deduction for qualified pass-through income (section 199A) for sole proprietorships, partnerships, and S-corporations. If the TCJA expires, this deduction will no longer be available.

*Estate Tax Exemption

The federal estate tax exemption sits at $13.99 million. That’s what you can hand over to your heirs (other than your spouse) when you die, without your estate needing to file an estate tax return.

Without an extension, the exemption amount will fall by more than half.

Estate taxes: The TCJA doubled the estate tax exemption. If this provision expires the exemption in 2026 will be about $14.3 million for married couples, compared to $28.6 million if the provision is extended.

Other Changes

Without any extensions or revisions in the current rules before the end of the year, the amount of mortgage interest you can deduct could rise by up to $250,000, and it could get easier to qualify for deductions for property and theft losses.

Many more people could be able to qualify for deductions related to the costs of moving for work-related reasons, and the dreaded alternative minimum tax might apply to more people.

You might have to pay taxes when converting 529 education savings accounts to so-called Able accounts, and some people would be able to deduct the cost of tax-preparation services again. Meanwhile, employers may lose the ability to cover a certain amount of employees’ student-loan payments (as an employee benefit) without the amount’s being taxable as income.

So, I would strongly suggest you talk to a tax professional so you can legally avoid any of these new Tax laws effecting you. Based on your tax file , you could be looking at up to a 30% increase in taxes — or to put it another way— you could be losing up to 30% in your tax refund.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk Trump 2.0- A Brand New Income Tax World , Part 1

Let me call a spade a spade!. When it comes to Tax Planning, 2025, to reference Tax Preparation 2025 ( next spring ), it will be close to impossible:

Our New Administration is trying to adjust and more importantly , make permanent, the original 2017 Trump Tax Plan.

Why you say?. Because if we do not adjust or the bill expires, many Americans could be looking at the biggest tax increase in US history

Even more sadder, because of the politics involved , we believe any agreement won’t happen till at least the fall of this year

So how do we plan for this disaster? By planning ahead – looking at the Trump proposals and trying to analyze different scenarios.

UNLESS YOU WANT TO LOOK AT UP TO A 22 % TAX INCREASE ?

OR MAYBE A 22% CUT ON YOUR TAX REFUND?

Part 1 of this 2 part series is designed to make you aware of the tax dangers ahead and Part 2 will show you how these proposals with directly hit your Tax file and refund.

So, let’s start with some awareness:

In 2017, the Trump Administration passed one of the largest tax cuts in U.S. history. While this was a complicated law with many moving pieces, it focused broadly on three main areas: reducing corporate taxes, reducing high-income individual taxes, and doubling the standard deduction for individuals. Beyond that, the Tax Cuts and Jobs Act (TCJA), rearranged a large number of deductions and tax breaks. Congress wrote many of the TCJA’s provisions to expire within a set number of years. This is known as a “sunset provision.”

While most, if not all, of the corporate tax cuts in the TCJA were written to be permanent, many of the law’s changes to the individual tax code are scheduled to sunset in 2025.

This means that those provisions will apply for tax year 2025, but will not apply to tax year 2026.

This has created significant uncertainty around the tax situation going forward

The Tax Cuts and Jobs Act (TCJA) became effective seven years ago as a major Trump administration tax code overhaul, making it the biggest change to tax law and policy in recent decades. (That’s why the TCJA is also known as the “Trump tax cuts.”)

However, many key provisions in the TCJA are set to expire soon — at the end of 2025 if Congress doesn’t act. Some call this the TCJA “tax cliff” or the TCJA sunset.

Provisions From Previous Bills That Are Set to Expire at the End of 2025

*Tax Brackets

*Standard deduction

*SALT’ — State and Local Tax Deduction

*Child Tax Credit

*Qualified Business Income

*Estate Tax Exemption

*Mortgage interest

*Alternative minimum tax

*529 education savings

*Able accounts

*The cost of tax-preparation services

*Student-loan payments

Part 2, next week, will be to examine them more closely

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Path to a Bigger Tax Refund for 2025 – Education (Part 7 of 7)

By PROFESSOR ANTHONY RIVIECCIO, MBA PFA

Education is a wonderful thing. But did you know that it’s even more wonderful because it is tax advantaged?

But there’s many things we must understand, most notably, the tax expenses, deductions and credits!

And since the law will allow you to take the bigger number of tax expenses, versus a tax credit versus a deduction, one must calculate which education credit or education deduction gives you the largest refund.

Expenses & Deductions
Up to $4,000 in qualified education expenses can be deducted on your tax return if your modified adjusted gross income is not more than $65,000 ($130,000 if married). If your modified adjusted gross income is higher than $65,000 ($130,000 if married) but less than $80,000 ($160,000 if married), you can deduct up to $2,000 of qualified education expenses.

If you choose to deduct the education expenses, you can’t take the American Opportunity Credit or Lifetime Learning Credit on the same student’s education expenses. It depends on each taxpayer’s circumstances whether it is better to deduct the education expenses or take the American Opportunity Credit or Lifetime Learning Credit.

If you are claimed as a dependent on your parents’ tax return, you aren’t eligible to claim an education credit or deduction. Your parents, or whoever is claiming you as a dependent, are the ones who are eligible to claim the education credit or deduction for the tuition paid for you, whether or not you or your parents actually paid the tuition.

Tax Credits
The American Opportunity Credit is a credit of up to $2,500 per student for education expenses, including course materials expenses such as books, supplies, and equipment needed for a course of study. It can be claimed each year during the first four years of college and post-secondary education.

The amount of the American Opportunity Credit is 100 percent of the first $2,000 of qualified expenses and 25 percent of the next $2,000 paid. Up to 40 percent of the credit (up to $1,000) can be refundable. The American Opportunity Credit is almost always the best education credit to take if you qualify for it.

If you qualify for the American Opportunity Credit, you’ll almost always get a larger refund using that credit. If you don’t qualify for the American Opportunity Credit, the Lifetime Learning Credit is often the next best choice.

The Lifetime Learning Credit is a credit of up to $2,000 per student. The credit is 20 percent of any tuition or class fees paid up to $10,000 (for a total allowable credit of $2,000). Books, supplies, and equipment are only eligible expenses if they are required to be paid to the institution as a condition of enrollment or attendance. The credit phases out for married taxpayers with adjusted gross income between $114,000 and $134,000. For single taxpayers and others not filing a joint tax return, the adjusted gross income phase out is between $57,000 and $67,000. If your income is too high to take the Lifetime Learning Credit you may still be eligible to claim the education deduction .

These rules are tricky but generally speaking here goes your best tip:

While expenses are deductible, as per your tax bracket, credits, are a dollar for dollar deduction.

So in short, if you spent $5,000 on education and your in a 20 percent federal tax bracket, your educational deductions will total $1,000 while tax credits could equal up to $5,000.

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 30th year as a fee-only financial planning firm specializing in solving one’s financial problems.

Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info and The Bronx Chronicle. Mr. Rivieccio also pens a financial article called “Money Talk”.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Anthony can be reached at 347.575.5045

Tax Talk: The Path to a Bigger Tax Refund for 2025– Investments (Part 5 of 7)

By PROFESSOR ANTHONY RIVIECCIO, MBA, PFA

Do you own stock? Bonds? Mutual funds? Congratulations, then you could have investment interest or dividend and capital gains. Or God forbid, capital losses!

Is the interest, dividends and capital gains taxable? Can you deduct your capital losses?

Investment interest
Deductible investment interest is interest paid on margin accounts or interest paid on loans used to buy or carry investments. For example, if you get a margin loan through your brokerage account and use it to buy more stocks, then the interest you pay is investment interest. Another example would be if you bought land to hold as an investment, then the interest expense you pay on the loan to obtain the land is investment interest.

Investment interest is deductible up to the amount of your investment income. Investment income includes dividends, interest income, and royalties. Disallowed investment interest is carried forward and can be used on future year tax returns.

Investment Expenses
Investment expenses are no longer deductible on Schedule A due to the Tax Cuts and Jobs Act.

Capital Loss Carryovers
If you have more capital losses than capital gains on previous year tax returns, a capital loss carryover can be used on your 2024 tax return. Look at Schedule D, Lines 15 and 16 on your 2023 return. If Schedule D Lines 15 and 16 are losses, then you might have a capital loss carryover to 2024.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

1. HISTORY: What is the Code of Hammurabi?
2. GAMES: Which letters in the English version of Scrabble are worth 10 points each?
3. MOVIES: What is the name of Dr. Evil’s cat in “Austin Powers in Goldmember”?
4. MEDICAL TERMS: What is the common name for somnambulating?
5. TELEVISION: What is the name of the town where “Veronica Mars” is set?
6. THEATER: What is the first play written by an African American woman to be produced on Broadway?
7. LANGUAGE: What is the official language of Austria?
8. MATH: What is the smallest prime number?
9. GEOGRAPHY: What is the only U.S. state with a one-syllable name?
10. MYTHOLOGY: What is the home of the Norse gods?
Answers
1. One of the earliest and most complete written legal codes established by the Babylonian King Hammurabi.
2. Q and Z.
3. Mr. Bigglesworth.
4. Sleepwalking.
5. Neptune, California.
6. “A Raisin in the Sun,” by Lorraine Hansberry, 1959.
7. German.
8. 2.
9. Maine.
10. Asgard.

Tax Talk: The Path to a Bigger Tax Refund for 2025 – Business & Self-Employment (Part 4 of 7)

By PROF. ANTHONY RIVIECCIO, MBA, PFA

If you have been keeping track of our income tax deduction series, you should have learned much already on our first two subjects: children and itemized deductions. Please go to our prior issues to look up those subject matters specifically, but this issue will be special, geared toward the world of small business and self employment.

Whether you own a storefront or provide goods or services in your home for other income, entrepreneurship, over the last 30 years, has helped to spur economic growth.

So, as I share with my clients: income is easy to understand and record right? Wrong!

Business (non wage) income and expenses are recorded on a Schedule C form.

Now, according to the IRS and Business Insider magazine, Part 1 of the form, “Business Income, is pretty easy to calculate. If you had any cost of goods sold or inventory, the form will have you subtract this from your gross income.

Now comes the entrepreneurs’ dream part! Part 2: Expenses. Treating the expenses like tax credits–a dollar for dollar deduction–because now you take your direct expenses, subtract them from your business Adjusted Gross Income , to bring you to “Net Income” of which you are finally taxed.

So yes, we can’t stress enough that you keep track of both your income contracts and expenses receipts. Now, just put them in it’s appropriate business categories:

Repairs and Maintenance
It covers any costs in repairing or maintaining your machinery, property, or buildings that don’t actually add to its value. Repair would include expenses like paying a plumber to fix the bathroom .

Utilities
Covers any payments your business makes, such as, electricity or gas. Phone service is also considered a utility.

Office Expenses
Such as postage, paper, envelopes, and pens can be claimed. Other miscellaneous examples of these might be toilet paper, cleaning supplies, coffee for employees and customers, small hand tools, or first aid kits.

Taxes and Licenses
Put down the sales taxes you have paid as the seller of goods or services.
Deductions that fall here include licenses or regulatory fees (liquor licenses may need to be amortized due to cost and duration).

Federal Unemployment Tax
Social Security and Medicare taxes paid for your employees
Real estate and personal property taxes on your business assets
You cannot deduct federal income taxes here, although you can deduct half your self-employment tax.

Travel, Meals, and Entertainment
Business Travel. If you go on a business trip, your hotel, plane ticket, taxi fares, parking, and tips for the bellboy are all deductible. You must keep your receipts for all these items, as this is one area that the IRS frequently audits. Expenses that are “extravagant or lavish” will be disallowed.

Business Meals. Since, presumably, you would need to eat , you may deduct only 50% of the cost of meals consumed for business purposes . This includes meals with your clients. “Lavish or extravagant” meals are not allowed. You should keep a record of the date, place, attendees, business purpose, and cost.

So if your gross Income, say was $50,000 but you had $30,000 of expenses , then you get taxed on only $20,000, at your regular taxable rate. If it is at say (federal and state ) 20 percent, then yes you must pay $4,000 in taxes. How much did you save in taxes ( $30,000 x 20 percent)? $6,000.

If you would have $50,000 on wage income, based on the same tax bracket ( would be higher) you would pay $10,000 in taxes (before deductions)

Entrepreneurship brings many benefits and many hard aches. Our country understands, whether it’s big or small or a home-based business-selling, servicing and expenses will happen, and in most cases, taxes are lowered, to make it easier to grow our Industrial revolution which had never really stopped.

Next week: Rent out an apartment? A home? The world of rental income/expenses.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Path to a Bigger Tax Refund for 2025 – Itemized Deductions (Part 3

By: Professor Anthony Rivieccio MBA PFA

While the majority of Americans probably may not be eligible to itemize, I encourage you to give yourself what I call the “Itemized Deductions” test: Add up all the sections below and if that number is higher than your standard deduction then itemize, itemize, itemize, with Form Schedule A.

First, understand all taxpayers, based on filing status, get a no-questions-nor-receipts asked, automatic standard deduction.

So, if you’re single, for example, you can just take an automatic $15,000 deduction ( Married, $30,000) or add up ALL of your itemized deductions. If you are eligible to itemize then that “bigger number” will bring you your “tax bracket percentage” back in your tax refund. For most Americans, that could be up to 40 cents to the dollar deduction, looking at federal and state taxes.

Itemized Deductions
Itemized Deductions consist of mortgage interest, property taxes, mortgage insurance, charitable contributions, medical expenses, state and local taxes, general sales tax, investment interest, casualty losses, gambling losses, and other miscellaneous expenses.

In recent years the IRS is trying to encourage more taxpayers to take the standard deduction versus itemizing. Again, we strongly recommend that you give yourself the itemized deductions test.

Medical Expenses
According to the IRS, “You can include medical expenses and copayments for you, your spouse, and your dependents. You can only deduct the part of your expenses that exceed 7.5 percent of your adjusted gross income.” Some examples of medical expenses with deductibility power include:

Abortions
Acupuncture
Alcoholism treatment
Ambulance costs
Birth control pills
Child birth classes
Chiropractors
Contact lenses
Crutches
Dentist
Dentures
Doctor fees
Drug addiction treatment
Prescription drugs
Dyslexia reading programs and tutors
Eye examination and glasses
Guide dogs
Health insurance
Hearing aids
Hospital bills
Insulin
Laboratory fees
Long-term care insurance
Nursing home if for medical treatment
Optometrist
Osteopath
Physical therapy
Psychiatrist
Psychologist
Travel to medical clinics
Vasectomy
Wheelchair

This list does not contain every medical deduction available. For more information regarding deductible medical expenses, go to the IRS website or Publication 17.

State and Local Income Taxes
Your state and local tax withheld on your W-2 or 1099-R will flow automatically to Schedule A.
State and local income taxes are deductible on Schedule A as itemized deductions for the year the taxes are paid.

So, in simple terms, looks at your W-2. If you live in a high tax state like New York, do not be surprised if you make, let’s say, $60,000 in 2024, that the New York State tax bite would be around $6,000 or more.

Tip: Now notice, that’s $6,000 of the $15,000 threshold (using the same single filer approach), which means if the other deductibles go over $9,000, then bingo, you can itemize and get 40 cents to the dollar back.

Charitable Contributions
A contribution is deductible if it is made to a qualified organization, such as a church or charitable organization like the United Way or Goodwill Industries.

Any unreimbursed out-of-pocket expenses for volunteer work for a qualified organization are deductible. Examples of out-of-pocket expenses include office supplies, uniforms, gasoline, or long-distance phone calls spent while doing volunteer work for a charity. You can either deduct your actual volunteer automobile expenses or you can use a standard mileage rate to calculate your automobile expenses based on miles driven.

If you donate property such as clothing or used appliances to a charity such as Goodwill Industries, you can deduct the fair market value (FMV) of the property donated. FMV is the price you would have received if you had sold the property instead of donating it. If you donated more than $500 of property, you will need to enter information about the donation on Form 8283.

It’s important to keep good records of your donations. For donations below $250, a canceled check, bank record, credit card record, or a receipt from the charity is proof that you made the donation. For donations of $250 or more, you need a receipt from the charity.

Tip: I encourage my clients very simply when they clean their home for seasonal cleaning to simply donate property (from clothing to a car). Remember, as stated above, the FMV method.

Job Expenses
The Tax Cuts and Jobs Act changed the job expenses deduction to only apply to certain types of employees.

Some common employee expenses that can be deducted (if you weren’t reimbursed for them) include:

Union dues
Certain job search expenses
Vehicle expenses
Miles driven (other than commuting)
Business meals
Overnight travel
Home office
Uniforms
Business gifts
Small tools
Parking fees
National Guard expenses

You may also be able to deduct:
Professional dues
Safety shoes
Safety glasses
Protective clothing
Business cards
Licenses
Trade magazines and subscriptions
Meals (50 percent is nondeductible)
Briefcase
Office decorations
Office supplies
Expenses related to temporary out-of-town job assignments
Certain education expenses
Malpractice insurance
Any other expense that relates to your job

NOW GET READY FOR THE BAD NEWS (BUT GOOD FOR OTHERS):

What employees qualify for the job expense deduction?

The Tax Cuts and Jobs Act changes: Beginning in 2018, the job expense deduction is only available to certain types of employees. The employees that qualify to deduct unreimbursed job expenses are:

U.S. Armed Forces reservists
Qualified performing artists
Fee-based state or local government officials
Employees with impairment-related work expenses

TAX TIP: BUT THERE IS GOOD NEWS ! DEPENDING ON YOUR STATE , AND REGARDLESS OF YOUR EMPLOYEE STATUS, IT IS TAX DEDUCTIBLE!.

Mortgage Interest
According to the IRS, interest is deductible on a loan(s) of up to $750,000 ($375,000 if married and filing separately) used to acquire, construct, or improve your principal residence and a second residence. The tax deduction is taken on Schedule A as an itemized deduction. Your primary home or second home can be a house, condo, RV, boat, or camper as long as it has cooking, toilet, and sleeping facilities.

To deduct mortgage interest or home equity interest, the loan must be secured by your main home or second home.

If you own a rental home or investment home, you can deduct the mortgage interest for that home as part of the rental home expenses or as investment interest even if it is a third home or more.

Mortgage interest on a home construction loan is deductible from the time construction begins. If construction of your home takes longer than 24 months, then any mortgage interest after 24 months is no longer deductible until your home is completed.

If you are an unmarried co-owner of a residence, the $750,000 ($375,000) limit applies to each taxpayer separately.

Property and Real Estate Taxes

Property and real estate taxes, included as part of your state taxes, are deductible. You will find these numbers on Form 1098.

Next week, under Part 4, we will cover the world of Small Business, Self-Employment & Home office.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk; The Path to a Bigger Tax Refund in 2024 - Children (Part 2 of 7)

By Professor Anthony Rivieccio MBA PFA

If you read part one of our seven-part series on how to get all your tax money back, we will now discuss one of the best, one of the most complicated and one of the most fruitful ways: children.

According to the IRS, children are not your babies but people that are growing fast! What the IRS wants to know is whether they are your dependents. Do they produce income? Do you maintain their support? How old are they? Are you separated or divorced? Do both of you share the burden? Maybe only one? Therefore, what is a dependent?

Children and Dependents

In general, according to the IRS, “If your child was age 18 or younger at the end of the year or if your child is a student and age 23 or younger at the end of the year then you can claim your child as a dependent if your child did not provide over half of his or her own monetary support during the year.

In general, if your child is age 19 or older or age 24 or older and a student at the end of the year, then you can only claim your child as a dependent if the child made less than $4,500 during the year, and you provided over half of their support. This rule also applies to other qualifying relatives who are not children, such as a parent, brother, or aunt. If the qualifying relative made more than $4,500 in income during the year you cannot claim the relative as a dependent, even if you are providing over half of their support.

There are a lot of special rules and detailed definitions for claiming a dependent that are found in the Form 1040 instructions. The above are just the general rules that apply to most people in claiming a dependent. If your situation is not typical, please reference Form 1040 instructions for full details on whether you can claim someone as a dependent.”

Divorce
According to the IRS, “In the cae of divorce or separation, the parent who had custody of a child for the greater part of the year (e.g. the custodial parent) almost always is entitled to claim the child as a dependent, even if the noncustodial parent is providing the money for the child’s support.

However, a noncustodial parent can claim the child as a dependent if the custodial parent signs a document, such as Form 8332, releasing his or her right to claim the child as a dependent for a single year or for multiple years or if the pre-2009 divorce or separation agreement gives the noncustodial parent the right to claim the child as a dependent. If the divorce or separation agreement went into effect after 2008, the custodial parent must sign Form 8332 or a similar document in order for the noncustodial parent to claim the child as a dependent.

If the child lived with each parent for the same amount of time during the year, the IRS will treat the child as the dependent of the parent who had the higher adjusted gross income during the year.

If you’re the parent who had custody of your child for the greater part of the year, then you can claim the Earned Income Credit, Dependent Care Credit, and Head of Household filing status, even if your divorce decree allows your ex-spouse to claim your child as a dependent or if you are allowing your ex-spouse to claim your child as a dependent. The parent who claims the child as a dependent gets the Child Tax Credit, but only the custodial parent can claim the child for the Earned Income Credit, Dependent Care Credit and Head of Household filing status.”

Child Care Credit
According to the IRS, “Child care and dependent care expenses may be eligible for a tax credit. The child care expenses need to be employment-related. The child care expenses must make it possible for you (and your spouse, if married) to go to work or look for work. Babysitting and child care expenses that aren’t related to your job aren’t eligible for the credit. Examples of qualified child care and dependent care expenses include payments to day care centers, work-related babysitting, day camps, after-school programs, nursery school, pre-school, domestic help, and nannies. Examples of expenses that do NOT qualify are overnight camps, transportation costs, and expenses to attend kindergarten or a higher grade.

You are eligible for the credit if you (and your spouse, if married) have earned income and maintain a household for a dependent age 13 or under or for a spouse or other dependent (regardless of age) who is mentally or physically unable to care for himself or herself. If your spouse is a full-time student, you still qualify for the Child Care Credit, even if your spouse has no earned income. If both of you are students with no earned income, you can’t take the credit. The total amount of child care expenses that can be used for the credit is $8,000 for one child or $16,000 for two children. If you are reimbursed for child or dependent care expenses through your employer, the expense ceiling is reduced by the amount of reimbursement or employer assistance. To qualify for the credit, you must pay for more than one-half of the cost of running your household for the year and you and the qualifying child or individual must live in the same residence. In the case of divorce, the parent with custody is entitled to the Child Care Credit, even if the custodial parent has waived the right to take the dependent exemption to the noncustodial parent.

Payments to relatives count for the credit as long as the relative is not your dependent. So grandparents, uncles, aunts, and your adult children (19 or older) qualify as child care providers if you do not claim the relative as a dependent on your tax return. Keep in mind that if you claim the Child Care Credit for payments to a relative as a child care provider, the IRS will expect that relative to report the child care payments received as income on the relative’s tax return.”

Child Tax Credit
According to the IRS, the child tax credit has increased and the income phaseout has increased significantly so a lot more people are eligible to receive the child tax credits. A new $500 credit has been added for qualifying dependents who are older than age 16.

A $2,000 per child tax credit is available for each qualifying child under the age of 17. A qualifying child is a child, grandchild, stepchild, or foster child that you claim as a dependent on your tax return. The credit begins to be phased out for taxpayers with adjusted gross income above $400,000 ($200,000 for single and head of household).

If your potential Child Tax Credit is more than your tax, you may be eligible for the Additional Child Tax Credit. As a rule of thumb, most people who qualify for the Additional Child Tax Credit have three or more dependents age 16 or younger, and are not receiving the full $2,000 Child Tax Credit for each dependent since their credit is more than their tax. However, the refundable Additional Child Tax Credit is limited to $1,400 per qualifying child.”

Earned Income Credit (EIC)
According to the IRS, the Earned Income Credit (EIC) is a refundable credit for lower income taxpayers. There are a number of factors that determine if you qualify for the Earned Income Credit. If you qualify, the credit will be added to your refund and be included in your tax return.

In order to qualify for the EIC, you must have earned income, such as wages, tips or self-employment income. Your investment income, such as interest, dividends and capital gains, cannot be over $4,000. If you are younger than age 25 or older than age 64 and you do not have any qualifying children for the EIC, then you are not eligible for the EIC. If you have an ITIN instead of a Social Security number, you aren’t eligible for the EIC. If your home was not in the United States for more than half the year, you aren’t eligible for the EIC. However, if you are a military member on extended duty overseas, you are still considered to have a home in the United States. If the IRS sent you a notice saying you can’t claim the EIC because of having your EIC disallowed on previous tax returns, then you aren’t eligible for the EIC. The IRS can ban taxpayers from claiming the EIC for ten years if the IRS believes an EIC claim was fraudulent, or the IRS can do a two-year ban if the IRS believes an EIC claim was reckless or intentionally disregarded the rules. If you are a nonresident alien (a noncitizen who does not live in the United States) at any point during the year, you aren’t eligible for the EIC. If you are a qualifying child for the EIC for another person, such as your parents, you aren’t eligible for the EIC. If you are claimed as a dependent by your parents or anyone else, you aren’t eligible for the EIC. If your filing status is Married Filing Separately, you aren’t eligible for the EIC.

To claim the EIC, your earned income and your adjusted gross income (AGI) must each be less than:

$54,000 ($60,000 if married filing jointly) with three or more qualifying children

$50,000 ($57,000 if married filing jointly) with two qualifying children

$44,000 ($51,000 if married filing jointly) with one qualifying child

$17,000 ($23,000 if married filing jointly) with no qualifying children

If your ex-spouse claims your child as a dependent, but you are the custodial parent whom your child lives with the majority of the year, you can still claim your child for the EIC. Then you will still be eligible to claim your child for the EIC and Child Care Credit even though your ex-spouse claims your child for the dependent exemption.

A qualifying child for the EIC is a child who meets the following three tests:

Is a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew)

Lived with you in the United States for more than half of 2024. Temporary absences for special circumstances, such as for school, vacation, medical care, military service, or detention in a juvenile facility, count as time lived at home. A child is considered to have lived with you for all of 2024 if the child was born or died in 2024 and your home was this child’s home for the entire time he or she was alive in 2024.

Was under age 19 at the end of 2024, or was under age 24 and a student at the end of 2024, or any age and permanently and totally disabled.”

Join us next week when we cover part three: Itemized Deductions. While this area is now a bit “harder” you should learn the new rules (some good) about medical expenses, city and state taxes, home ownership, charity and job expenses.

Professor Rivieccio is also the host of ” Financial Focus University” a financial & personal finance streaming TV Show.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: The Path to a Bigger Tax Refund for 2025 (Part 1 of 7)

By PROFESSOR ANTHONY RIVIECCIO, MBA PFA

Most people mistakenly think that tax preparation is tax planning time. But by thinking this way, they think they could “erase” or “add” things that happened in 2024 when it will soon be 2025.

So in short, if you did not plan in advance, that’s why it’s called tax planning, folks! Your refund for 2024 is now complete!

But what about your refund for January 2025? Soon, we will be in January; don’t you think you should start planning now?

Well, if you’re smart enough to plan now for a higher tax refund next year ( in 2025) , then remember this: The Trump administration’s tax law in 2017, has dramatically changed the landscape when it comes to both individual and business tax deductions and credits. Today, if I had to put one word to it, I would say it’s based on your lifestyle, and how can readjust and enhance it now.

We believe, briefly, that if one wants to start readjusting their tax liability and life tax style, then they should be looking into the areas of: children, self-employed and small business, itemized deductions, retirement, education, rental income deductions, and w-4 re-adjustment.

If you have a lifestyle that fits any of the categories above then you might have eligible deductions and credits.

So, for the next seven weeks we will discuss in detail, tips and strategies, in each of the above areas, to find you areas of deductibility- that will bring you a bigger tax refund in the future.

Next week: Children.

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Rivieccio OnlineTax Advisors, a virtual only Income tax preparation & planning firm, opened in 2021.

Tax Talk: No City Tax starting in 2025?

By Professor Anthony Rivieccio MBA PFA

A proposal by Mayor Eric Adams would abolish New York City’s personal income tax for nearly half a million qualifying residents.

He has recently unveiled a plan to eliminate New York City’s personal income tax for filers with dependents living at or below 150% of the federal poverty line.

The tax proposal would require approval from Albany before it can become law. Gov. Kathy Hochul is supportive of the plan.

“The Governor would be supportive of efforts to lower the City’s personal income tax rate, and commends Mayor Adams for continuing to focus on affordability,” spokesperson Kristin Devoe said.

Based on the proposal above:

Family size	Maximum annual income
One adult, one child	$31,503
One adult, two children	$36,824
Two adults, one child	$36,789
Two adults, two children	$46,350

(Credit: Office of the Mayor of New York City)

Currently, New York City’s income tax system is also progressive and rates regarding this are about 3.3%.

Good idea? Yes! Good idea? No!

Yes the publicity will sound good, especially for Eric. Economically it’s not a good idea because a great majority of them currently don’t and won’t pay any taxes anyway.

Between the low tax rates, coupled with ” standard deduction ” ” child care & earned income credits”, the effect on taxes should be minimal or nothing

So, why is he doing it? Re- election, anyone?

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: 2024 Trump wins BIG, 2026 you could lose BIG!

By Professor Anthony Rivieccio MBA PFA

Are you aware that ” Tax Law” will be heavily discussed in 2025. Why? Because many of the old Trump 2017 Tax Laws expires at the end of 2025.

In 2024, NOW, the 2017 law starts to ” transition”. Many ” business credits” start to go down while ” consumer and family credits” start to go up

AGAIN , UNTIL DECEMBER 31,2025 AND THEN— THE LAW IS SUPPOSED TO GO BACK TO 2016.

How dangerous is that?

Here’s an example:

Standard deductions!

According to current law;

For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024.

Sounds good! If your single, for example, my standard deduction went up and I save an additional $400 next year when taxes are filed .

ON JANUARY 1 2026, ACCORDING TO LAW, THE STANDARD DEDUCTION GOES BACK TO 2016. FOR DINGLE PEOPLE , USING THIS SAME EXAMPLE THAT WOULD BE $6,250

YES,you heard me right! It goes from a $15,000 to $6,250. In layman’s terms, a loss of deductibility of $8,750.

And many areas; from small business deductibilities, to standard deductions, to child care, retirement & education credits — which will be scheduled to go down 50%, unless Congress changes the law

And I believe they will. And this is why you’ll probably hear more about tax policy in 2025 than you have in 30 years.

But even more importantly, with this much uncertainty, NOW would be a great time to talk to a Tax Advisor about your tax file .

I have a feeling , not next year, but the year after ( 2026) many people, by not preparing or planning their tax situation will be in Church , in April of 2026! Yes it’s Easter Time but they’ll be there crying – after getting their bill tax bill that they will OWE !

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Mr. Rivieccio pens a financial article called “Money Talk” along with ” Financial Focus”. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The New York Parrot, The Bronx News, thisisthebronX.info , The Bronx Chronicle & The Parkchester Times.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: After Election Income Tax Thoughts

By Professor Anthony Rivieccio MBA PFA

So, it looks like Donald Trump won the US Election. And with a slim majority in Congress it’s safe to assume that some of his tax policies might get passed

Without getting too specific in this article , my immediate thoughts after the election

* Renewal of the 2017 Tax Laws

From a standpoint of the economy , it looks solid that Trump will renew his 2017 tax game plan . The tax cuts , like 2017, could spur , consumer , business & economic growth

* State & Local Tax Deductions ( SALT ) deduction

Since 2017, I think Trump realizes that his cap on this deduction hurts ” high tax” States. I think he realizes property taxes are not deductible currently under this method and I believe he will revisit this and take off the cap , like it was , prior to 2017.

* Child Tax Credits

It seems whether your Democrat or Republican — the children win!. More children Tax Deductions and credits are promised and expected

* No Tax on Tips

Do you believe it ? I’m not sure but I think most economists will agree, it’s more hype than substance.

* Tariffs

Is importing goods at a high price and is it a good idea? Well , for foreign economies, it could be a hurtful idea but for the US, the hurt could be minimal. Yes, higher prices could be transferred to the consumer but note that ” trade” only represents about 10% of our economy. And yes the extra money ” could be ” used to pay for tax cuts.

So, 2025, will bring in the Trump continuation of an Income Tax revolution. Trump & Congress must remember that all this economic growth, through lower taxation must be balanced by additional revenue or lower spending. Tariffs alone will not do it. And The Children win! .

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Can Hurricanes Helene & Milton be tax deductible?

By Professor Anthony Rivieccio MBA PFA

In late September, Hurricane Helene ravaged parts of Florida, Georgia, North Carolina, South Carolina, Virginia and Tennessee. Two weeks later, Hurricane Milton brought high winds, tornadoes and flooding through the middle of Florida.

Affecting both insured and uninsured homes, the losses from both storms could amount to tens of billions of dollars.

Certain victims can amend 2023 tax returns to claim a tax break for recent losses, known as the “casualty loss tax deduction,” according to the IRS. But the calculation is complicated.

The 2017 Tax Laws temporarily restricted eligibility. Only losses in federally declared disaster areas will qualify through 2025.

When there’s a qualified disaster loss, there is no 10% AGI limit, and victims can add their loss on top of the standard deduction.

That means they can claim the deduction even if they don’t itemize tax breaks.

However, we haven’t had any qualified disasters, as designated as such by Congress, since late 2020.

So what’s deductible ?

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

The SALT Tax Deduction By Professor Anthony Rivieccio MBA PFA

By Professor Anthony Rivieccio MBA PFA

State & Local Taxes deduction (SALT)!

It’s in the tax code. Prior to 2017, you could have deducted any amount of State, Local & Property taxes . From today, to 2025, those amounts have been capped to $10,000. If your over that amount, in short, your screwed!.

Who’s fault is that? Congress, under the leadership of Donald Trump. He decided at that time to ” simplify” the tax code ( into a postcard ) and hense, eliminate many personal tax deductions .What was the trade-off? Personal tax cuts.

Congress briefly weighed doing away with the SALT deduction cap earlier this year, but the effort never made it off the ground. The cap is poised to sunset at the end of 2025.

Many organizations, including The Tax Foundation estimates that it will cost the US Budget $10 billion, per year .

In my opinion the problem is ” Property Taxes”. Because of this, property taxes, in high tax related States, easily will get them over the $10,000 limit and will therefore lose a portion of tax deductibility.

So is it worth getting rid of SALT? Keep the SALT? Or maybe we need Pepper?

Make sure you vote correctly in November.

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Tax Talk: Taxes, Retirement & The 2024 Election

By Professor Anthony Rivieccio MBA PFA

Guess what?

You can’t control the election outcomes or what the market may or may not do based on election outcomes. You can however, build your own retirement economy and your own desired market experience that revolves around your lifestyle and what you want.

In times of great change, it is only natural for people to wonder and worry, even more so, as we head into what appears to be the most contentious election in modern history.

Predictions are being made based on history — the months and quarters that are most likely to be positive and negative, as well as the likelihood of a positive market. Some are showing likely upside and downside based on which party is elected in each branch of government.

Now do we currently have economic problems: We have plenty !

The economy and markets are still responding to the highest inflation numbers since 1981. Interest rates have risen faster than any period in our modern history. The U.S. is also involved in at least two wars, depending on how you count the U.S. military engagement at the border and abroad. U.S. debt by household is as high as it’s been in decades.

But this article is about taxes, right? Raising taxes, in theory , increases Government revenue and vice versa

So what do they do when they need to raise revenues? Increase taxes and reduce deductions. The lie is this is only on “the rich.” This approach to increasing taxes — introduce a tax “targeted at the rich,” then after it gains acceptance, roll it out on the masses — has a long history. The federal income tax — made possible in 1913 with ratification of the 16th Amendment — was originally introduced as a way to make the wealthy pay their fair share.

So let’s get to the BOTTOM line: Your Taxes & Retirement

If you have at least $500,000 or more, and your retirement requires $100,000 a year to maintain your lifestyle, $65,000 to $80,000 of your retirement is under attack. The good news is that there is a preferential tax code now. Investment assets are near all-time highs, and inflation has been tamed somewhat for the moment.

Here are some tips for election year 2024

Now’s the time to make tax minimization moves on your retirement money while tax rates are at all-time lows
Insulate your investments from market crashes, before they come, whether it happens this year or a later year
Set up retirement income layers that are protected from economic and market volatility so your lifestyle doesn’t go on a stock market roller coaster ride
And certainly don’t wait in the hopes the market will be higher just before or after the election in November, or that your chosen party will all of a sudden start lowering taxes to benefit you

The Good news is that both candidates are favorable to lower taxes and seniors. The Bad news , we don’t know what really is going to happen, regardless of person or party

Make your moves, NOW!

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx

Taxing Unrealized Capital Gains: We have it now!

By Professor Anthony Rivieccio MBA PFA

So, what is a unrealized capital gain? You hear the Kamala Harris campaign talk about it all the time. You hear people, like Donald Trump, say it will kill the economy. So, what is it?

A simple definition:

Unrealized capital gain/loss. An increase/decrease in the value of a security that is not “real” because the security has not been sold.

An example:

If, say, you bought 100 shares of stock “XYZ” for $20 per share and they rose to $40 per share, you’d have an unrealized gain of $2,000. If you were to sell this position, you’d have a realized gain of $2,000, and owe taxes on it.

So in simple terms, unrealized is when you do NOT receive the monies and a realized gain is when you do.

So recently while teaching an income tax class, one of my students brought it up in conversation. They wanted me to explain it further.

I told them that I would give them my definition in non political economic terms.

So, is it bad for our economy ? My answer: I said, ” we have it now “!. Yes , confusion on my students faces appared.

So I gave the example; let’s say you have extra money you wanted to put away long term. So you go to the bank and open a 5 year CD, with interest.

Every year, you make interest. Every year, you decide to leave the interest in the account. Every year you get a 1099 form from the bank because the interest must be declared on your taxes– even though you left your interest in the account ( sounds like your savings account too, right ?) .

How much tax are you paying on ” interest income “? Basically, it’s your tax bracket!. For most, it will be 25%.

Did the economy die? No!

Now, I’m not advocating to tax unrealized gains! I’m just saying we have it already ! My own opinion; it’s a tax (bs) expense to the consumer and businesses

More importantly, tax policy is indeed very important to our economy, so please do your research before going to the polls later this year

Professor Anthony Rivieccio, MBA PFA, is the founder of The Financial Advisors Group, celebrating its 25th year as a full service investment planning & management firm . Anthony is also owner of Rivieccio Financial Advisors, a virtual only financial planning & advisory firm, opened in 2021.

Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University.

Ask The Professor is your new Personal Finance Do It Yourself community found in Facebook Groups.

https://facebook.com/groups/2895516820767852/

For financial assistance, Anthony can be reached at (347) 575-5045. Have Facebook? My email is a_rivieccio@yahoo.com My personal page is www.facebook.com/anthonyfromthebronx