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 2020 when soon it will be 2021.
So in short, if you did not plan in advance, that’s why it’s called tax planning, folks! Your refund for 2020 is now complete! Your income is your income and your tax deductions and credits have been used.
But what about your refund for January 2022? For tax year 2021? After all, soon it will be the first week 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 in 2022 then remember this: The Trump administration’s tax law has dramatically changed the landscape when it comes to both individual and business tax deductions and credits.
Trumpo might be gone, but his tax rules are still here!
So , today, if I had to put one word to it, I would say it’s based on your lifestyle, and how can one readjust and enhance it now.
And without talking about COVID 2020 too much I think it's safe to say we'll be dealing with some new and potentially dangerous tax secnerios: Did you receive unemployment and are you taking tax out of it? If your working from home, did you learn how to properly record those items?. Not understanding our " new normal" from a tax standpoint , coupled with new tax laws, could drop your expected million dollar refund to pennies .
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, that offsets income, lowers your tax liability and thus provides are higher tax refund..
So, for the next seven weeks we will discuss in detail, tips strategies and analysis 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 a recognized financial expert since 1986, and 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 is the founder of 2 small businesses: The Financial Advisors Group, celebrating its 25th year as a fee-only financial planning firm specializing in solving one’s financial problems and Rivieccio Financial Advisors a full service " virtual," subscription based financial advisory firm, opened in 2020.