OTT Wealth Architects- Tax Prep

01/30/2025

Are You Paying Enough Federal Taxes Throughout the Year?

Many taxpayers are surprised when tax season rolls around and they owe money, even though they’ve claimed the same allowances for years. What’s changed? ⬇️⬇️⬇️

12/31/2024

Did you know the IRS might pay you to save for retirement? 😲🔥 The Saver’s Credit allows you to save for your future AND cut your taxes at the same time! 💰✨

11/28/2024

11/28/2024

🦃 Happy Thanksgiving from Over the Top Wealth Architects! 🍁

As we celebrate this season of gratitude, I want to take a moment to express how truly thankful I am for all of you—my incredible followers, clients, and future partners on this journey.

Your trust, support, and engagement mean the world to me. Whether you’re here seeking financial clarity or simply looking for inspiration, I am grateful for the opportunity to serve and connect with you.

This year, I am especially thankful for the chance to help individuals, families, and businesses design the foundation of their financial futures. Your success is my purpose, and I look forward to continuing to empower you with the tools and strategies to achieve your goals.

Wishing you and your loved ones a Thanksgiving filled with joy, love, and reflection. Here’s to a season of abundance in all areas of life!

🌟 With gratitude,
Over the Top Wealth Architects
“Designing the Foundation of Your Financial Future, One Plan at a time”
Thank you so much for your referrals! 🫶🏾🫶🏾

11/28/2024

HAPPY THANKSGIVING‼️‼️🫶🏾🫶🏾🫶🏾

11/21/2024

Example: To Itemize or Not?

Scenario:
• Single filer with $50,000 taxable income.
• Expenses: $8,000 in mortgage interest, $5,000 in state taxes, $1,000 in charitable donations.

Option 1: Standard Deduction
Deduction = $14,600.

Option 2: Itemized Deductions
• Mortgage Interest: $8,000
• State Taxes: $5,000 (SALT limit applies)
• Charitable Donations: $1,000
Total = $14,000

Result: The standard deduction ($14,600) is higher, so it’s the better choice.

11/21/2024

When to Take the Standard Deduction

The standard deduction is usually better if:
1. Your Itemized Deductions Are Less Than the Standard Deduction
If your total deductions don’t exceed $14,600 (single) or $29,200 (married filing jointly), the standard deduction will save you more money.
2. You Want a Simpler Tax Filing Process
Itemizing requires keeping receipts and detailed records. The standard deduction is straightforward—no paperwork required.
3. You’re Not a Homeowner
Renters often have fewer deductions, making the standard deduction a better choice.
4. You Don’t Have Significant Medical or Charitable Expenses

Without large deductible expenses, the standard deduction is usually the better option.

11/21/2024

When to Itemize Deductions

You should itemize if your total itemized deductions exceed the standard deduction amount. Here’s when it makes sense:
1. You Have High Mortgage Interest
If you’re a homeowner with significant mortgage interest payments, itemizing could be worthwhile.
2. You Pay High State and Local Taxes
If your SALT (state and local taxes) payments are close to the $10,000 limit, adding them to other deductions could make itemizing beneficial.
3. You Made Large Charitable Donations
Significant donations to qualified charities may push your deductions over the standard amount.
4. You Have Large Medical Expenses
If out-of-pocket medical costs exceed 7.5% of your AGI, they could be a substantial deduction.
5. You Suffered a Major Loss
Casualty and theft losses in federally declared disaster areas may allow you to deduct those losses.

11/21/2024

What Are Itemized Deductions?

Itemized deductions are specific expenses that you can list individually to reduce your taxable income. They include:
1. Mortgage Interest: Interest paid on a home loan.
2. State and Local Taxes (SALT): Includes property taxes, state income taxes, or sales taxes (limited to $10,000).
3. Charitable Contributions: Donations to qualified charities(churches and organizations) could be money or items.
4. Medical Expenses: Out-of-pocket medical costs exceeding 7.5% of your adjusted gross income.
5. Casualty and Theft Losses: Losses in federally declared disaster areas.

11/21/2024

Standard deduction or itemized deduction??

Standard Deduction for 2024

The standard deduction is a fixed amount you can subtract from your income without itemizing.

For 2024, the standard deduction is:
• Single or Married Filing Separately: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900
• Qualifying Surviving Spouse (formerly Qualifying Widow or Widower): $29,200
• Married Filing Separately: $14,600