Tax Tips for Filing in 2021


As we get into tax season, filing for 2020 is fundamentally different from most tax years, especially in light of Covid and the stimulus packages passed last year. We thought it would be helpful to share a few general tax tips to keep in mind as you’re working with your tax advisor.

The first thing to consider is the tax stimulus credits. The EIP (Economic Impact Payment, aka stimulus check) is actually a 2020 tax credit that was advanced to taxpayers as part of the Cares Act. Certain qualifications, such as income levels and dependency status, impact the amount the taxpayer may receive. The first round allowed for a maximum of $1200 per qualifying adult and $500 per qualifying dependent child (age 16 and under). The second round allowed for $600 per adult and $600 for dependents 16 and under.

Another consideration during 2020 tax preparation is the group of taxpayers caught in in-between – taxpayers age 17 and over, usually high school and college children still claimed as dependents by their parent. When filing 2020 tax returns, parents and their dependents need to consider whether it makes sense to still claim the dependent child. Parents may phase out of education tax credits, the child may have graduated during the tax year but still eligible to be claimed, or perhaps 529 plan money was used to pay college expenses. In those cases it may be better for the child to claim themselves to take advantage of the education credits and qualify for up to $1800 of the EIP.

What most people don’t understand is that if you haven’t yet received the stimulus check yet, or, if you retired in 2020 or your financial circumstances changed dramatically last year, you may still be eligible to receive a credit on your 2020 taxes of up to the full amount of $5,800 for a family of 4, or even more if you have eligible dependents. 

For example, at Lineweaver Financial Group Tax Services, we had several clients who had buyouts in 2019, so they had very high income. But, in their first year of retirement, 2020, they met the criteria to qualify for the stimulus credits. When you work with your tax professional, make sure to talk through the eligibility requirements and if you’ve received any payments. You may be surprised who is able to qualify. 

Another notable change was that you didn’t have to take required minimum distributions in 2020, but as far as we know, you will in 2021. That’s something you’ll want to take into account in your planning for the coming year. You are still able to use Qualified Charitable Distributions or QCDs to reduce your tax burden or Donor Advised Funds. There’s also an above the line deduction of up to $300 provided for by the CARES Act. That has also been extended into 2021 and will be available up to $600 for those married filing jointly.  

There’s also still time to fund things like Health Savings Accounts, Simplified Employee Pension Plans, Roth or Traditional IRAs for 2020. You have up until April 15th to fund those. For those high-income earners, you may be able to fund a back-door ROTH. You can avoid the income restrictions by funding a traditional IRA and then converting to it. Although, there are many nuances to this strategy, so speak with your tax advisor about it before making any decisions. 

Finally, deadlines changed last year, as the country grappled with COVID. Although the IRS did delay the start of tax season by a few weeks this year, it looks as though, at least for now, that filing deadlines will be the same as they have in past years, meaning that everything has to be filed by April 15th

This is a particularly tricky tax year, given COVID, stimulus checks, and the way that many peoples’ finances may have changed dramatically over the last year. We’re here to answer your questions, help get federal, state, and city returns filed, and we take the time to have tax planning discussions with all of our clients, to help set them up for success in the future.

Most Recent

Strategies to help your favorite charity and your bottom line

Posted By Lineweaver Financial Group
November 21, 2023 Category: Charity, Finance, Donation, Tax Strategies

The end of the year is the time when people are looking to show gratitude by donating to their favorite charities or special causes that are important to them. But like any financial decision, you should take a moment to see if there are any tax benefits or strategies to consider that can maximize your giving efforts.  The first strategy to consider is a Donor Advised Fund. These have two main tax advantages. First, you become eligible for an income tax deduction of the full fair market value of the asset, up to 30% of your adjusted gross income (AGI) for gifted securities, and 60% of your AGI for cash. It also eliminates capital gains taxes on long-term appreciated assets if they’ve been held for longer than a year. The second strategy that can help benefit a charity – as well as your own finances – is a Qualified Charitable Distribution or QCD. QCDs can be a great option for those 70 ½ or older and allows you to contribute money directly from your IRA to your preferred charity. You’re allowed to give up to $100,000/year. The advantage is that this reduces your AGI, which affects things like Medicare, Social Security, and various other tax credits and deductions. It may even help you reduce your income taxes. It can also help you offset any additional income you have if you’re over age 72. Another charitable deduction that’s available is the Ohio Scholarship tax credit. It’s a $750/person non-refundable credit you ca

Q4 2023 Commentary and Portfolio Changes

Posted By Lineweaver Financial Group
November 02, 2023 Category: Finance, Market, Portfolio, Investments

Key Takeaways: We are changing our allocations to slightly overweight U.S. quality stocks, seeking to capitalize on the recent market pullback and position for potential upside surprises in U.S. economic growth and corporate earnings.   We are leaning into U.S. high-quality stocks expressing a high-conviction preference for the largest cap stocks in the U.S. that appear to have attractive growth profiles.   We plan to decrease our exposure to Europe, moving underweight international Developed Market (DM) stocks due to weakening corporate earnings signals and more pronounced downside vulnerability to potential rising energy prices and geopolitical turmoil.   We are underweight bonds and overweight cash and short-term instruments that offer very attractive yields. The ghost of September's past haunted markets once again in 2023 and has carried over. This notoriously weak seasonal period - combined with rising rates and declining liquidity - saw stock and bond prices press lower. The S&P 500 Index, for example, is off its late summer highs by almost 10%, and the Bloomberg U.S. Aggregate Bond Index is down a similar amount from its earlier highs. We are potentially facing an unprecedented third year in a row of bond market losses.  Overall, it has been a challenging year for investors with only the largest stocks doing well while most equity and fixed-income styles are flat to down. The “Magnificent 7” stocks in the S&P 500

Get your money working harder for you

Posted By Lineweaver Financial Group
September 21, 2023 Category: Finance, Cds, Bonds, Invest

Are you frustrated with your bank savings interest rates? We have a few options to get your money working harder for you.    When it comes to building a robust and diversified investment portfolio, there's more to consider than just individual equities and real estate. CDs and bonds are often overlooked but can be invaluable assets in any investor's toolbox, especially at today’s historically high rates.    Generally speaking, the S&P 500 return is 10% annually on average since 1957, according to Seeking Alpha1. But in a year with market uncertainty, constant volatility, and rising interest rates, a smaller return with reduced risk may be a preferable option to some. Because of elevated interest rates, there are both CDs and bonds that are paying in the 5.5%- 7.2% range2. And the Fed’s future path is uncertain – these rates may increase over time.      CDs are fixed instruments, so any rate increase won’t affect those you hold now. But you can stagger your purchases and build a CD ladder, which allows you to layer new CDs at increasing rates so that you may be able to benefit from rising interest rates.    This is possible because all CDs have a term – a fixed contract date – and different interest rates will be offered for different durations. CDs also have the advantage of being FDIC-insured up to $250,000.     That brings us to our other strategy, bonds. The FDIC insura

Finance (50)
General (40)
Commentary (35)
Newsletter (30)
Economy (27)
Blog (24)
Portfolio (24)
Educational (16)
Economic Commentary (12)
Retirement (9)
Healthwatch (7)
Letter From The President (7)
Taxes (6)
Tax (5)
Bonds (5)
Market (5)
Health (4)
Estate Planning (4)
Q3 (4)
Investments (3)
New Year (3)
IRA (3)
Markets (3)
Inheritance (3)
Lineweaver (3)
Dividends (3)
Tax Planning (3)
Market Update (2)
Coordination (2)
Charity (2)
Spotlight (2)
Crain\'s (2)
Investment (2)
Trump (2)
Economic Outlook (2)
2019 (2)
Financial (2)
Insurance (2)
Q2 Newsletter (2)
HealthWatch (2)
Trust (2)
Tax Strategies (2)
Awards (2)
Volatile Market (2)
Strategies (2)
News (1)
Eductional (1)
Rating (1)
Healthy Living (1)
Real Estate (1)
Fitch (1)
Fraud (1)
2021 Outlook (1)
Interest Rates (1)
Dollar (1)
Recession (1)
Sleep (1)
Steps (1)
End Of Year Taxes (1)
Black Swan (1)
CARES Act (1)
Stimulus (1)
Nutrition (1)
Probiotics (1)
Cds (1)
2020 (1)
2020Q3 (1)
Election (1)
Medicare (1)
Your Retirement Playbook (1)
2020Q4 (1)
Markets Don\'t Pick Sides (1)
Invest (1)
Medicare Supplements (1)
College (1)
Investment. Advisers (1)
Spam (1)
Cosultation (1)
Resolutions (1)
Lineweaver Financial Group (1)
Goals (1)
Sales (1)
Cyber (1)
Security (1)
Finances (1)
Email (1)
Retirement 401k 529 (1)
Banks (1)
Postnuptial (1)
Prenuptial (1)
Agreements (1)
Nuptial (1)
401k (1)
Crains (1)
529 (1)
Second Opinion (1)
Certified Financial Planner (1)
Money (1)
Medical News Today (1)
Technology (1)
Analysis (1)
Education (1)
Planning (1)
IRS (1)
Pros And Cons (1)
Holiday (1)
End Of The Year (1)
Series (1)
Certification (1)
Estate Plan (1)
Wealthtrac (1)
Business Coordination (1)
Financial Professionals (1)
Financial Services (1)
Employee (1)
Clients (1)
School Tuition (1)
Cefex (1)
Donations (1)
Credit Unions (1)
Annuity (1)
Summer (1)
Travel Tips (1)
Travel (1)
Drink Water (1)
Market Volatility (1)
Investing (1)
Cryptocurrency (1)
Bitcoin (1)
Advice (1)
Q3 Newsletter (1)
Client Spotlight (1)
In Laws (1)
Trusts (1)
Bloodline Trust (1)
Marital Trust (1)
Vacation From Investments (1)
Screens (1)
Eye Strain (1)
2018 (1)
Market Review (1)
Bruce Motko (1)
LFG (1)
Financial Quarterback (1)
RMD (1)
Eat More (1)
Market Commentary (1)
Market Review 2017 (1)
Letter From The President New Years Resolutions (1)
Transfer Real Estate (1)
Defer Tax (1)
Top Financial Strategies Of The Wealthy (1)
Market Pullback (1)
Reallocation (1)
Distribution (1)
New Website (1)
Social Security (1)
Financial Planning (1)
Tariffs (1)
Trading (1)
New Tax Law (1)
529 Plans (1)
Charitable Giving (1)
Q2 (1)
Rising Interest Rates (1)
Quarterly Newsletter (1)
Annuities (1)
Pse (1)
Traditional Ira (1)
Congress (1)
Sell In May And Go Away (1)
Stock (1)
Buy (1)
Sell (1)
Dementia (1)
Review (1)
Lose Weight (1)
Big Banks (1)
Roth Ira (1)
Savings (1)
Checking (1)
Banking (1)
Longterm Care (1)
Healthcare (1)
Elder Law (1)
POA (1)
Power Of Attorney (1)
Charitable (1)
Roth Conversion (1)
Chad Roope (1)
Tax Law (1)
Healthy (1)
James Lineweaver (1)
Exercising (1)
Vacation Home (1)
Diversification (1)
Stocks (1)
Market Outlook (1)
Financial Goals (1)
Jim Lineweaver (1)
New Years Resolutions (1)
Cooking (1)
Wills (1)
Tips (1)
Q1 (1)
Pro Football Hall Of Fame (1)
Anne Graffice (1)
David Baker (1)
Sring Cleaning Your Finances (1)
Keeping Your Mind Sharp (1)
Q2 2019 (1)
Legal (1)
Donation (1)
+ Show More

Terms and Conditions | Privacy Policy | Disclosures

Nominees in the Top 100 Magazine selections are not required to pay a fee for consideration. Individuals appearing in half and full page editorials, have paid a fee for additional exposure. Candidates for consideration are selected utilizing proprietary software. Top 100 Magazine analyzes the results before making their final selections. Financial Professionals and/or wealth managers must also met the following criteria; 1. Be registered with the SEC as a registered investment advisor or a registered investment advisor representative; 2. Have no more than 1 filed complaint with a regulatory agency; 3.Never been convicted of a felony. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the Financial Professional by any client nor are they representative of any one client's evaluation. Lineweaver Financial Group appeared in Money magazine in 2015, Fortune Magazine in 2016, WTAM 1100 in 2018, Forbes in 2020, Channel 5 in 2020, and Top 100 in Finance in 2023.

Lineweaver Financial Group ©
Powered by Virteom Logo Virteom