Capital Advisory Group - October 2020

119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

Are You Organized for the Coming Tax Year?

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What Really Happened the Night Martians Invaded New Jersey?

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Join a Professional Association and

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See Your Business Grow

The Challenges of Working After Retirement — Planning is Everything

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Classic Pumpkin Soup

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Don’t Let the IRS Haunt You

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PUT THE GHOST OF THE IRS IN ITS PLACE 3 Tips for Year-Round Tax Planning

Sometimes, it can feel like the specter of the IRS is constantly looking right over your shoulder. When one tax season ends, it seems the next has already begun. This Halloween, don’t let them put the scare on you. Instead, take your tax planning to the next level and say goodbye to the ghouls of tax season. Here are three tax planning tips that will give you a leg up several months before the 2020 season rears its ghastly head! ( And don’t forget to read this month’s cover article for even more! ) Check on your withholding. Things change. People get married, divorced, have kids, and so on. Major life events such as these directly impact your taxes. Every year, it’s a good idea to check up on your withholding. This way, there are no surprises the next time you file your taxes, such as owing much more than you

expected. If updates are needed, fill out Form W-4 to change any withholding and return it to your employer. You can find a link to Form W-4, along with many others on our website at CapAdvGrp.com/tools/ tax-resources/tax-forms . Check on tax credits and deductions. Most people opt for the standard deduction and call it a day. However, depending on your situation, it may make sense to itemize your deductions in order to lower your tax burden. If you find that you do qualify for a number of deductions, go for it. If not, you can stick with the standard deduction. At the same time, it’s always a good idea to check available tax credits to see what you may be eligible for. Common tax credits include the child tax credit and the lifetime learning credit.

Check on retirement savings. The IRS rewards taxpayers who save. If you currently contribute to a retirement plan, such as a 401(k) or IRA, those contributions have the potential to lower your adjusted gross income, and thus, your taxes. There are many different types of retirement accounts that qualify, including those for self-employed business owners. Keep track of your savings and have that information ready to go come tax time.

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