Kurt J. Lawn CPA PFS

03/04/2024

Please don't forget to take advantage of your energy credits you had done in 2023. Just had a client save about $16,000 for Solar.

02/17/2024

Just a reminder. Contributions to a NJ 529 College savings plan is now a tax deduction on the NJ return for 2023. The Contributions needed to have been made during the 2023 tax year.

02/17/2024

Don't forget about your energy efficient improvements! You may miss out on an IRS tax credit.
https://www.irs.gov/credits-deductions/home-energy-tax-credits. Day and evening appointments available. (609) 272-2259.

Energy improvements to your home such as solar or wind generation, biomass stoves, fuel cells, and new windows may qualify you for credits expanded in 2022.

02/01/2024

New Jersey Child Tax Credit
Eligible New Jersey residents can claim a refundable Child Tax Credit on their New Jersey Resident Income Tax Return (Form NJ-1040). The credit amounts increased for Tax Year 2023 and can be up to $1,000 for each dependent child age 5 or younger that is claimed on Form NJ-1040. The credit reduces any tax owed and can result in an increased refund for the taxpayer.
Eligibility Requirements for the Child Tax Credit

You must be a New Jersey resident for either all or part of Tax Year 2023;
You must have a valid Social Security number or Individual Tax Identification Number;
You must be allowed to claim the child as a deduction for the tax year for federal income tax purposes;
The child must be age 5 or younger by the end of the tax year;
You must have taxable income of $80,000 or less;
You cannot have a filing status of married filing separately. You must file as:
Single;
Married/civil union couple filing joint;
Head of household; or
Qualifying widow(er)/surviving civil union partner.
How to Claim the Child Tax Credit

You must complete and file Form NJ-1040 even if your gross income is below the filing requirement.

You can file your return electronically for free using the New Jersey Online Income Tax Filing system.

If you need assistance preparing your New Jersey Resident Income Tax return, volunteers are available to offer free Income Tax preparation at sites throughout the state.

01/22/2024

Hope everyone had a great New Year! Thank you for your business! Tax return e-filing will be starting next week. We have started booking appointments , so if there's a specific date you're interested in, please don't hesitate to call. If you usually owe, you can still have them prepared early and I will have the payment come out April 15th unless you request otherwise. Also I'm requesting mail-in returns by March 25. This will allow me enough time to to do an efficient job. There will be an additional fee for mail-in returns past that date. Also I still offer 10% discount for each referral up to 50%. This is for tax return referrals only, not Financial Planning Services. Office (609) 272-2259.

12/20/2023

ROTH ROLLOVER OPTION FOR 529 PLANS

Roth rollover option for 529 plans. Beginning in 2024, SECURE 2.0 changes 529 plan rules. In limited circumstances (i.e., there are a lot of requirements that must be met including that the Roth IRA account must be in the name of the 529 plan beneficiary), some people may be able to rollover a 529 plan that they have maintained for at least 15 years to a Roth IRA.
Annual limits for the rollover would have to be within the annual contribution limit and there will be a $35,000 lifetime limit on what can be rolled to the Roth IRA.

12/04/2023

QUALIFIED CHARITABLE DISTRIBUTION
Use QCDs to manage your required minimum distributions from an IRA. A qualified charitable distribution (QCD) allows individuals who are 70½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions.

09/29/2023

Was at a 2 day Financial Planner Seminar this week given by a very successful Financial Advisor and was reminded me of what I've been telling many clients over my 25+ years in the business, paying off your mortgage isn't the best financial move. If you're paying the mortgage company 5% or less, and you invest the money you would use to pay above your monthly payment, you come out ahead in the long term. The S&P 500 which is an index of the 500 largest companies has had an average annual return of 10.41% over the last 10 years, 7.51% over the last 5. Obviously Covid impacted the 5 year return, but still better than the interest on your mortgage.

05/09/2023

RETIREMENT INCOME FOR NJ RESIDENTS
Retirement Income Exclusions
You worked hard during your career to provide income through your retirement. The State of New Jersey offers some retirement income exclusions you may qualify to use that can reduce your taxable income. The current income limit for a Retirement Income Exclusion is $150,000.

Pension Exclusion
You can exclude all or part of the pension income reported if you meet the following qualifications:
You (and/or your spouse/civil union partner, if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year (December 31 for calendar year filers); and
Your total income for the entire year was $150,000 or less.
When you and your spouse/civil union partner file a joint return and only one of you is 62 or older or disabled, you can still claim the maximum pension exclusion. However, you can exclude only the pension, annuity, or IRA withdrawal of the qualified spouse/civil union partner.

If you qualify, you can claim the lesser of your actual taxable pension income or the maximum pension exclusion amount for your filing status and gross income.

Total Income of $100,000 or Less
If your total income is $100,000 or less, you can exclude reported taxable pension, annuity, and IRA withdrawals up to the maximum amount for your filing status listed below.

Total Income Married/CU Couple,
Filing Joint Return Married/CU Partner,
Filing Separate Return Single, or Head of Household,
or Qualifying Widow(er)/Surviving CU Partner
$1- $100,000 $100,000 $50,000 $75,000
Total Income of $100,001 - $150,000
If your total income is $100,001, but not more than $150,000, you can exclude a percentage of your reported taxable pension, annuity, and IRA withdrawals.

Use the chart below to determine your exclusion amount. Multiply your taxable pension found on Line 20a of the 2022 NJ-1040, by the percentage listed next to your 2022 filing status.

Total Income % of Taxable Pension Filing Status
$100,001 - $125,000 50 % Married filing jointly
25 % Married filing separately
37.5 % Single/head of household/qualifying widow(er)
$125,001 - $150,000 25 % Married filing jointly
12.5 % Married filing separately
18.75 % Single/head of household/qualifying widow(er)
$150,001 or more Not eligible for a pension exclusion

03/26/2023

FILING DEADLINE
3 weeks until the tax filing deadline April 18th without extension. Please book your appointment by this week because it will be more difficult to schedule an appointment the closer we get to the deadline.

02/25/2023

Just 4 days left for 2019 Homeowners to get as much as $1500 and $450 for Renters.

More New Jerseyans qualify for property tax relief than EVER BEFORE under the new ⚓ program. Renters and Homeowners: Apply today for up to $1,500 back in your pocket. File by FEB. 28
ANCHOR.nj.gov

02/14/2023

Just a reminder for everyone that lived in NJ in 2019 and paid RE Taxes or Rent, you more than likely qualify for the NJ Anchor Program (Formerly the Homestead Rebate) which could result in a rebate check of up to $1,500. DEADLINE IS 2/28/2023. More taxpayers qualify because they raised the income limit substantially.

02/08/2023

TAX PREPARATION 2022 TAX YEAR
I offer in office or home tax appointments, mail-in, virtual as well as a combination of the later. Message me or call my office for a tax appointment or to let me know you mailed your paperwork. (609) 272-2259. Final Reminder Anchor Savings Application DUE 2/28/2023.

01/28/2023

REMINDER
Anchor Savings is Due February 28th. If you were a NJ resident paying property taxes or rent in 2019, you more than likely qualify.

01/24/2023

IRS ANNOUNCEMENT & TAX PREPARATION 2022 TAX YEAR
The IRS has announced returns will be accepted for e-file starting January 23rd. I will be offering in office or home tax appointments, mail-in, virtual as well as a combination of the later. Message me or call my office for a tax appointment or to let me know you mailed your paperwork. (609) 272-2259

01/17/2023

NJ ANCHOR BENEFIT FOR NJ HOMEOWNERS AND RENTERS UPDATE
Who is eligible for the ANCHOR program?
ANCHOR eligibility is as follows:

Homeowners with income of $150,000 or less will receive $1,500.
Homeowners with income of more than $150,000 and up to $250,000 will receive $1,000.
Renters with income of $150,000 or less will receive $450

The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program replaces the Homestead Benefit.

12/02/2022

YEAR END TAX INFORMATION

1) BUSINESS OWNERS- If you're contemplating purchasing a business asset, it may be more beneficial to purchase it before the year end because the Bonus Depreciation drops from 100% to 80% starting January 1, 2023.

2) HOME OWNERS - If you intend to replace your exterior windows or doors in the near future, it would be more beneficial to wait until after the year end to take advantage of the Energy Credit.

3) NJ EDUCATION SAVINGS PLAN - New Jersey taxpayers, with gross income of $200,000 or less, may qualify for a state income tax deduction for contributions into an NJBEST plan of up to $10,000 per taxpayer, per year, beginning with contributions made in tax year 2022. I'm available for appointments beginning 12/5 for those interested in knowing more.

09/28/2022

Just a reminder for clients who I filed an extension for, the filing deadline is October 17th. I'll need your information by October 5th to insure I have ample time to complete it.

07/16/2022

WHEN TO START COLLECTING SOCIAL SECURITY
I get this question occasionally from clients, so I thought I'd post an example:
SS Benefit if started at age 67 $2,634
SS Benefit if started at age 70 $3,375
If the client waits until age 70 the SS Benefits given up in those 3 years would be 2,634 x 36 months = $94,824
Length of time to recover the lost benefits
SS Benefit difference $3,375- $2,634= $741
$94,824 ÷ $741= 127.968 months ÷12 = 10.66 years to recover those 3 years of benefits.
The average life expectancy of a Male in the US is 78.79 Female 82.65.
In this scenario it's clearly worth taking the benefits at age 67 because you also have to account for the time value of money. That $94,824 could be earning money.

06/01/2022

NJ 529 COLLEGE SAVINGS PLAN

With Tax season behind me with the exception of extensions, I will be taking appointments to help clients with retirement plans and to set up a NJ College 529 Plan. A College Savings Plan was always a good investment that allows a parent to switch beneficiaries if one of their children decides not to attend college. NOW NJ HAS FOLLOWED NY AND PA AND HAVE MADE IT A TAX DEDUCTION STARTING IN 2022 IF YOUR INCOME IS $200,000 OR LESS. A DEDUCTION OF UP TO $10,000 (SINGLE) AND $20,000 (MARRIED) CAN BE DEDUCTED FROM YOUR NJ RETURN. Please call my office to set up an appointment.

Advisers criticize the plan for higher-than-average fees and limited investment selections.

03/29/2022

MORTGAGE VS. HOUSE PAID OFF
This subject has come up frequently this tax season because part of my job as a CPA/Financial Planner is to make sure my clients have the best mortgage rate. Sometimes I get a reply that they want to pay their house off, but it may be wiser to invest for the long term like your retirement plan at work instead of paying extra towards your mortgage. History has shown the market will easily outperform the interest rate you're paying to the mortgage company. The S&P 500 stocks has an average rate of return of 10.72% over the last 30 years.

01/27/2022

INDIVIDUAL/BUSINESS TAX PREPARATION

I will be offering in home and office tax appointments. Day, evening and Saturday afternoon appointments available. Your safety is important to me. I've been double vaccinated and had Covid, but will wear mask when social distance isn't possible. I will also use hand sanitizer. In addition to appointments I offer mail-in, virtual as well as a combination of the later. Message me, call or email me for tax appointment or to let me know you mailed your paperwork and if interested in opening a 529 College Savings Plan.

01/25/2022

IRS ANNOUNCEMENT & TAX PREPARATION
The IRS has announced returns be accepted for e-file starting January 24th. I will be offering in office tax appointments with masks, social distancing and hand sanitizer, as well as mail-in, virtual as well as a combination of the later. Message me, call or email me for tax appointment or to let me know you mailed your paperwork and if interested in opening a 529 College Savings Plan.

01/19/2022

https://www.franklintempleton.com/practice-management/education-savings/529-program-and-portfolio?role=fp&utm_campaign=us_ft529_crm-fa_fanj&utm_source=Facebook&utm_placement=Facebook_sponsoredpost-reach_CRM_FT529_FANJ_FT529Budget-ATPUSI202206&utm_medium=social_ad&utm_content=us_ft529_father-child-$10k-nj-tax-deduction-ad-1_static_caa2536_1080x1080&fbclid=IwAR0ucl74HXmzldS7nvGpJ_y8cRwTXFyaPkz66xVvOgQ3e4WzFzrd6ij_w3c

The State of New Jersey, in part through The New Jersey College Affordability Act, provides benefits to help New Jersey residents save money when investing for education with the Franklin Templeton 529 College Savings Plan.  Check out these features to see if you can help your clients take adva...

01/18/2022

NJ 529 COLLEGE SAVINGS PLAN
NJ STATE TAX DEDUCTION
New Jersey taxpayers, with gross income of $200,000 or less, may qualify for a state income tax deduction for contributions into an NJBEST plan of up to $10,000 per taxpayer, per year, beginning with contributions made in tax year 2022.

MATCHING GRANT PROGRAM
One-time grant of up to $750 matched dollar-for-dollar of the initial deposit into a new NJBEST account for a new beneficiary. Visit HESAA's site for terms and conditions and how to apply.

SCHOLARSHIP OPPORTUNITY
Students at New Jersey colleges or universities can receive a tax-free college scholarship worth up to $3,000, depending on how long the plan has been open.

Won’t interfere with New Jersey Financial Aid
Plan assets of up to $25,000 won’t be included in determining a beneficiary’s eligibility to receive financial aid awarded by the state of New Jersey.
If interested in opening a 529 plan, you may call my office to schedule an appointment.

01/18/2022

IRS Has announced that it will start accepting returns on 1/24/22. I will be doing taxes via appointments in home, in office, virtual and by mail. Your safety is important to me. I've been double vaccinated and had Covid over the holidays, but will wear a mask. Those of you who didn't receive my annual tax letter last week can send me a message and I'll email one to you. Also I will start scheduling appointments this week, so if you have a preference, please let my lovely wife know, and she'll be happy to schedule you for that time. Ask about referral discount. Looking forward to seeing you this year.

01/12/2022

Happy New Year everyone! Hope you had a joy filled healthy Holiday. It's that time of year, and I don't mean Christmas. Those of you who didn't receive my annual tax letter last week can send me a message and I'll email one to you. Also I will start scheduling appointments this week, so if you have a preference, please let my lovely wife know, and she'll be happy to schedule you for that time.