Tax Pro World is abuzz about the increase of the Social Security wage base standard.
Well, I should clarify — most of Tax Pro World is taking naps this week and not really thinking much about taxes whatsoever, ha! After all, that was one of the most epically intensive tax “seasons” I can remember, with the stimulus payments, CARES Act changes, PPP, EIDL, and more.
But given what we’ve had to walk through with so many Cleveland clients this year, and the economic and cultural pain that is roiling through the nation … I’m not complaining. We’re truly thankful that we get to be the ones who can be a port in the 2020 storm for our Cleveland tax and accounting clients. We get to help you save on your taxes and be a source of trustworthy information.
In fact … before I tell you about the Social Security business, would you do me a favor?
Would you take a moment to leave us a review on Google?
Make us smile with a review on Google
I know, I know … it’s annoying when businesses ask you for such things. I get it.
But the reason we do is that these platforms (Google, etc) are now such powerful forces for business growth that having good reviews from kind clients is a significant lever for whether we continue to be able to help. Sure, it would be fantastic if none of us had to play these kinds of “marketing games” and our success was based purely on how effective we were at helping our clients.
But we live in the world of “is”, not the world of “should be”.
We work extremely hard to not only save on your taxes … but also to have you know that we are in your corner, and that we want to help you in any way we can.
So again, find us on Google, if you would, and take a minute to drop us a review. We’d be very grateful!
Make us smile with a review on Google
And speaking of working hard to help you… we want to help you make a plan for your 2020 taxes that will set you up for long term success. In fact, there may be a few moves we can make that can help reduce your 2020 tax hit NOW before we’re forced into “reaction mode” — which is the only mode out of which after-the-fact tax work can be done.
So, I’d like to help you get ahead of the game by having you answer a few short questions, if you haven’t already. Send me an email with your responses, using the email button at the top of this page:
1) Have you had a significant change in your wage income this year?
Put YOUR answer here in your email reply
2) Have you taken capital gains or losses this year? Are you planning to?
Put YOUR answer here in your email reply
3) Did you start or sell a business this year?
BONUS QUESTION: Do you know anyone who did, that would like input on their tax situation?
Put YOUR answer here in your email reply
4) Did you purchase real estate?
Put YOUR answer here in your email reply
5) Did you make your full contributions to retirement accounts?
Put YOUR answer here in your email reply
6) Have you considered a Roth IRA?
Put YOUR answer here in your email reply
7) Did you withdraw from retirement accounts, and for what purpose?
Put YOUR answer here in your email reply
**8) Have you sent your family and friends our way — and, if not, is there something which we can help you with, to make this easier?
Put YOUR answer here in your email reply
9) Are there any other tax or financial (or other) issues you think we should know about?
Put YOUR answer here in your email reply
This is just a start, but your answers will help us to know which direction to take as we work with you over the next two months to prepare for year-end. With your permission, we’ll contact you back, as appropriate, and set up a time to discuss them further with you, whether by phone or other method.
Warmly,
Rich Rhodes
PS — I almost forgot the information about the Social Security Wage Base increase…
The IRS just told us that this will be increasing from $137,700 to $142,800 in 2021. That means an increase in the FICA taxes of close to $800 for some. While this won’t actually impact the majority of my clients, it’s still good information to have.
Yet another reason for us to plan ahead for 2021 if it DOES affect you.
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“CRISIS Action Plan” for my Cleveland tax clients — which is still relevant today:
1) Don’t marinate in other people’s panic. Be mindful of your social media consumption.
2) Continue to stay financially and logistically prepared for worsening situations.
3) Make sure you have some ready, liquid assets, if you are able. (I.e., cash in the bank, and in hand.)
4) Set aside plans for any big spending until the dust settles — but especially look out for your small business owner friends and vendors.