Wrentham Rockets Softball Champions!!

Wrentham Rockets Softball Champions!!

The Wrentham (WYBSA) Rockets of the Major League Division are 2021 Champions!! The team is sponsored by NFS and coached by NFS President Jeff Schweitzer. Congratulations to the Wrentham Rockets who had an awesome regular season going 10-2-1 and finished strong with 2 more wins in the playoffs beating the Plainville Tigers in the semi-finals 9-6 and the Norfolk Jayhawks 12-2 in the championship game! Way to go girls and coaches 🥎

Smart Money Management Tips for Young Adults

Smart Money Management Tips for Young Adults

If you pay much attention to social media, you’ve probably noticed the trending memes about “adulting.” They can be pretty funny, but they also make young adulthood look a little scary. In reality, being a young professional is an exciting time. And adulting doesn’t have to be so hard — or scary — when you have the knowledge it takes to set yourself up for success, especially when it comes to making sound financial decisions.

 

Start Investing Now!

 

One of the most common mistakes that young professionals make is the assumption that investing takes more money and experience than they have. You don’t want to invest blindly, of course, but that doesn’t mean you can’t learn enough to start making smart investments now. If you aren’t sure where to start, contact Northeast Financial Strategies for investment guidance, and check out a resource like Money Under 30 for a primer on investing basics like mutual funds, bonds, and robo-advisors.

 

In addition to stocks and bonds, real estate is another investment option young adults should consider. Any property you buy is technically an investment, but real estate investing as a growth strategy usually means buying a property that you either rent or fix and sell for a profit.

 

Like any other investment, real estate has the potential for positive outcomes along with possible drawbacks. For young people, one advantage to real estate is that it doesn’t require a great amount of capital. The rental market is also a sustainable business model with the potential for regular passive income. The possible downside is that financing your property does require a certain amount of money. What’s more, if you aren’t up for the task, handling maintenance, marketing, and everything else it takes to be successful can become a burden.

 

Adopt Money-Smart Habits

 

Saying it’s important to manage money wisely may seem like a no-brainer, but actually doing this takes effort. To begin, make sure you’re familiar with money management basics like setting a budget. You may even want to use a budgeting app. Once you have the basics down, focus on adopting other money-smart habits that will protect your finances now and for the future.

 

Spend Less

One of the best long-term habits to adopt is to live frugally. Doing this doesn’t mean leading a life of denial; instead, it’s all about learning to make informed decisions about purchases. Try some of our favorite money-saving tips from Young Adult Money, including shopping habits like choosing generic brands and using coupons. It may not seem like saving a dollar here and there is such a big deal, but small savings add up, especially when you start early.

 

Save More

The natural result of spending less is that you have more money left over to save. In addition to investing, young adults should also set savings goals. These should always include creating an emergency fund and saving for retirement, but you may also have other specific goals like saving to start a family or buy a house.

 

Build Credit Wisely

Another top financial goal for young adults should be to build your credit history. This is important because having a good credit score can make a difference in other financial decisions like getting a car or home loan. To make sure you do this without incurring debt, brush up on credit card best practices, which include finding a card that’s low-interest and low-fee and always paying off your balance. It’s also important to know what kind of things damage your credit. One key example is how your credit score takes a hit anytime you pay bills late, which is why CNBC money experts recommend setting up automatic bill pay.

 

“Adulting” may be a recent concept, but learning smart money management is something every generation of young adults has to do (or at least, should do). The great thing for today’s generation is that technology has made this easier than ever, with tools like automatic bill pay and budgeting apps. With a concerted effort, commitment to using these tools, and guidance from Northeast Financial Strategies, getting started on solid financial footing doesn’t have to be hard or scary!

 

Photo credit: Pixabay

IRS Begins Correcting Tax Returns For Unemployment Compensation Income Exclusion

IRS Begins Correcting Tax Returns For Unemployment Compensation Income Exclusion

WASHINGTON – The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income.

The IRS identified over 10 million taxpayers who filed their tax returns prior to the American Rescue Plan of 2021 becoming law in March and is reviewing those tax returns to determine the correct taxable amount of unemployment compensation and tax. This could result in a refund, a reduced balance due or no change to tax (no refund due nor amount owed).

These corrections are being made automatically in a phased approach, easing the burden on taxpayers. The first phase is underway and includes the simplest returns. The next phase will include the more complex tax returns which the IRS anticipates will take through the end of summer to review and correct.

The first phase of adjustments is being made for single taxpayers who had the simplest tax returns, such as those filed by taxpayers who did not claim children or any refundable tax credits.

The IRS will issue refunds resulting from this effort by direct deposit for taxpayers who provided bank account information on their 2020 tax return. If valid bank account information is not available, the refund will be mailed as a paper check to the address of record. The IRS will continue to send refunds until all identified tax returns have been reviewed and adjusted.

These refunds are subject to normal offset rules, such as past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support or certain federal nontax debts (i.e., student loans). The IRS will send a separate notice to the taxpayer if the refund is offset to pay unpaid debts.

The IRS will send taxpayers a notice explaining the corrections, which they should expect within thirty days of when the correction is made. Taxpayers should keep any notices they receive for their records. Taxpayers should review their return after receiving their IRS notice(s).

Correction to any Earned Income Tax Credit (EITC) without qualifying children and the Recovery Rebate Credit are being made automatically as part of this process. However, some taxpayers may be eligible for certain income-based tax credits not claimed on their original return, such as the EITC for their qualifying children. If so, they should file an amended tax return if the revised adjusted gross income amount makes them eligible for additional benefits.

More complex corrections will begin upon the completion of the first phase and involves couples filing as married filing jointly.

Unemployment compensation is taxable income. The American Rescue Plan excludes $10,200 in 2020 unemployment compensation from income used to calculate the amount of taxes owed. The $10,200 per person exclusion applies to taxpayers, single or married filing jointly, with modified adjusted gross income of less than $150,000. The $10,200 is the amount of income exclusion, not the amount of the refund. Refund amounts will vary and not all adjustments will result in a refund.

The legislation also suspends the requirement to repay excess advance payments of the Premium Tax Credit (excess APTC). If a taxpayer paid an excess APTC repayment amount when they filed their 2020 return, the IRS is also refunding this amount automatically. If the IRS corrects the taxpayer’s account to reflect the unemployment income exclusion, the excess APTC amount that the taxpayer paid will be included in that adjustment. The IRS is also adjusting accounts for those who repaid excess APTC but did not report unemployment compensation on their 2020 tax return.

Taxpayers who have not yet filed a tax return should follow the guidance for Forms 1040 and 1040-SR, which details how to exclude unemployment compensation. Should you need assistance in filing or you have some questions about the adjustment that was made, please contact us here at NFS.