Mesa Money Minute

About Mesa Money Minute

I'm a local financial professional who produce this daily feature at the studios of KAFM Community Radio in Grand Junction, Colorado. I offer up short, 1- to 2- minute segments on tax, finance, economy, markets and other financials topics. Image credit: President Washington by Laakso for FreeVector.com

Publisher

Gina Tallman

Category

business · business · news

Language

en

Explicit

No

First episode

8 Jan 2024

Latest episode

25 Nov 2024

Latest episodes

18 episodes in the feed.

1. 

   25 Nov 2024

   Charitable Contributions

   Certified Public Accountant Mesa Money Minute host explores how to maximize charitable contribution deductions, including itemizing and Colorado's Subtraction for Charitable Contributions.

2. 

   18 Nov 2024

   Estate Planning and Taxes

   Estate planning is essential for managing your financial future and minimizing tax liabilities for your heirs. Beyond gift giving, there are several strategies you can use to plan for estate taxes effectively. First, consider establishing trusts. Trusts like a Spousal Lifetime Access Trust (SLAT) allow one spouse to transfer assets to a trust for the benefit of the other spouse, providing access to the assets while removing them from the taxable estate. Charitable giving is another powerful t...

3. 

   11 Nov 2024

   Tax Planning for New Parents

   Welcoming a new baby is an exciting time, and it also brings new tax considerations. Let’s dive into some key tax planning tips for new parents. First, there’s the Child Tax Credit. For 2024, you can claim up to $2,000 per qualifying child under age 17. If your tax liability is less than the credit, you might be eligible for the Additional Child Tax Credit, which can provide a refund of up to $1,500 per child. Next, consider the Dependent Care Credit. If you pay for childcare so you can work ...

4. 

   4 Nov 2024

   Tax Changes to Watch

   As we look ahead to 2025, it’s important to be aware of significant tax changes on the horizon. Many provisions of the Tax Cuts and Jobs Act (TCJA), enacted in 2017, are set to expire at the end of 2025. Here’s what you need to know: First, individual income tax rates will revert to their 2017 levels. This means higher tax rates for many taxpayers. Additionally, the standard deduction will be cut roughly in half, and the personal exemption will return. The child tax credit will decrease, impa...

5. 

   28 Oct 2024

   Filing Taxes as a Small Business Owner

   Filing taxes as a small business owner can be complex, but understanding the basics can make the process smoother. Depending on your business structure, you may need to file different types of returns. Sole proprietors and single-member LLCs typically file a Schedule C as part of their personal 1040 tax return. However, if you operate as a partnership, multi-member LLC, or corporation, you’ll need to file a separate business tax return. It’s crucial to report all income and all deductions acc...

6. 

   21 Oct 2024

   Tax Credits vs. Deductions

   Understanding the difference between tax deductions and tax credits is essential for effective tax planning. Tax deductions reduce your taxable income, which means their value depends on your tax rate. For example, a $1,000 deduction saves you $240 if you’re in the 24% tax bracket. Tax credits, on the other hand, provide a dollar-for-dollar reduction in your tax liability. So, a $1,000 tax credit reduces your tax bill by $1,000, regardless of your tax rate. This concept applies to both federa...

7. 

   14 Oct 2024

   Home Office Deductions

   An often-overlooked deduction for self-employed individuals is the home office deduction. This allows you to write off a portion of your home expenses as business expenses. To qualify, you must use a specific area of your home exclusively for business purposes. There are two methods to calculate the home office deduction: the actual expense method and the safe harbor method. The safe harbor method lets you deduct a flat $5 per square foot of your home office, up to 300 square feet or $1,500. ...

8. 

   7 Oct 2024

   Tax Benefits of Retirement Accounts

   What is the best account to use for your retirement savings, a 401(k) or an Individual Retirement Account (IRA)? Each has pros and cons. With a 401(k), you can set aside more each year (up to $23,000 in 2024, or $30,500 if you’re over age 50). It’s easy for an individual to set up, as your employer typically handles deducting your contributions from your paycheck and depositing them into the account. There are no income limits, and often employers offer matching contributions to boost your sa...

9. 

   23 Sept 2024

   Understanding Tax Brackets

   Understanding the difference between marginal tax rates and effective tax rates is crucial for accurate tax planning. The marginal tax rate is the rate applied to your last dollar of income, while the effective tax rate is the average rate you pay on all your income. A common misconception about taxes is that a 40% top tax rate means you’ll pay 40% of your taxable income in taxes. In reality, the U.S. uses a graduated income tax system, where your top, or marginal, tax rate only applies to th...

10. 

    16 Sept 2024

    Tax Implications of Side Hustles

    Having a side hustle is another term for being an independent contractor or self-employed. All income from a side hustle is taxable, whether it's part-time, temporary, not reported on traditional tax forms like W-2's or 1099's, or paid in cash, cryptocurrency, or barter. If you have a side hustle, track and report your income and expenses just like any other business. You must file a tax return if your net earnings from your side hustle exceed $400, even if you otherwise aren't required to fi...

11. 

    9 Sept 2024

    Maximizing Deductions

    Many deductions are often overlooked due to the hassle of recordkeeping or simply not knowing they exist. With a bit of organization and education, you can ensure you're maximizing your write-offs and reducing your tax bill. Commonly missed deductions include the home office deduction, vehicle expense deduction, business use of cell phone and internet bills, and the self-employed health insurance deduction. Most of these are primarily available to self-employed individuals, so if you're a W-2...

12. 

    2 Sept 2024

    Tax Tips for Freelancers

    If you're a freelancer, you might be curious about potential tax deductions. Generally, any expense that’s ordinary and necessary for your business operations can be deducted, though there are many exceptions in the tax code. One commonly overlooked deduction for sole proprietors is the home office deduction. If you use a space in your home regularly and exclusively for business, you can deduct a portion of your mortgage interest or rent, utilities, insurance, maintenance, and HOA dues. ...

13. 

    5 Feb 2024

    Home Energy Credits

    The Inflation Reduction Act of 2022 implemented some new and changed other energy efficiency credits (https://www.energy.gov/save/homeowners) for home improvements. Certain types of home energy efficient upgrades, including exterior doors, windows, skylights, and insulation, central air conditioners, water heaters, furnaces, boilers and heat pumps, biomass stoves and boilers, and home energy audits, qualify for a credit up to 30% of the cost of the expenses, with a max of $1200 (heatpumps, biomass stoves, and boilers, have a separate limit of $2000) with no lifetime max. Further, other types of home energy efficient upgrades, such as solar, wind and geothermal power generation, solar water heaters, fuel cells, and battery storage are eligible for a credit of up to 30% with no lifetime limit or annual max. For more information on what types of property qualifies, visit energy.gov/save.

14. 

    29 Jan 2024

    Electric Vehicle Credits

    The Inflation Reduction Act of 2022 implemented and changed many of the clean energy credits (https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after) available to both individual and business taxpayers. The electric vehicle (EV) credit is available for individual taxpayers with adjusted gross income of less than $300k for married taxpayers and $150k for single taxpayers. For a vehicle to qualify, it must be purchased new for personal use, and must have a battery capacity of at least 7kWh, and have a gross vehicle weight rating of less than 14,000 lbs. It also must be made by a qualified manufacturer, and undergo final assembly in North America. Lastly, the manufacturer's suggested retail price must be less than $80,000 for SUV's and pick-up trucks, and $55,000 for other vehicles. If a vehicle meets all these requirements, it could be eligible for a credit of up to $7,500. Additionally, there is a Colorado credit of up to $5,000. The requirements are complex, so be sure to do your research before purchasing a new EV! For more information, visit energy.gov and search for clean vehicle credits.

15. 

    22 Jan 2024

    National Data Privacy Week

    January 21-27 is National Data Privacy Week (https://staysafeonline.org/programs/data-privacy-week/). It's a good time to review the steps you're taking to protect your personal sensitive information and make any adjustments for the new year. Check your security settings on your devices, and especially when you set up a new device. Device manufacturers often release new security features with software updates, so stay updated and familiarize yourself with any new settings. Default passwords should be changed as soon as possible. Never email sensitive information; instead utilize client portals and secure file transfer systems. Review your bank and credit card statements regularly for any unfamiliar charges. Don't use public, unsecured wifi for things like banking and shopping. Set up alerts on your bank account and credit card accounts so you are immediately notified of any unusual spending. Set up an account on irs.gov to monitor your tax account, and request an Identity Protection PIN. Consider freezing your credit with the credit bureaus until you need to apply for a loan. For more tips on protecting your personal data, go to staysafeonline.org.

16. 

    15 Jan 2024

    ERC Voluntary Disclosure Program

    Amid the recovery efforts from COVID-19, many businesses took advantage of the Employee Retention Credit (ERC) which allowed a credit for keeping employees on payroll. However, the regulations and requirements of the credit are complex, and many businesses may have discovered after the fact that the claimed the credit in error. IRS has been stepping up enforcement action on incorrect ERC claims in recent months. If a business loses the ERC under audit, they'll be liable to repay the credit plus penalties and interest. However, for businesses who claimed the ERC in error or by mistake, IRS has announced a Voluntary Disclosure program (https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program) which allows those businesses to return 80% of the credit and not be subject to penalties. There are many requirements for eligibility for this program, so be sure to consult with your CPA to determine if you are eligible. For more information, visit irs.gov and search for ERC voluntary disclosure program.

17. 

    15 Jan 2024

    FAMLI Leave is Now Available

    Colorado Family and Medical Leave Insurance (FAMLI or "Famli") leave is available to use beginning January 1, 2024. If you are an employee and need leave for an eligible reason, typically parental leave for birth or adoption of a child, medical leave to care for a person with a serious medical condition, whether that person is yourself or a family member, leave to support family members who are in the military, or to attend the needs of a person (including yourself) who has experienced domestic abuse. Leave is available for up to 12 weeks, and is available on an intermittent basis. MyFAMLI+ is the portal where employees will go to apply for leave. They may apply up to 30 days before a planned leave, or up to 30 days after the first absence. Workers will not receive the full amount of their normal wages, but a reduced amount based on their average wages, not to exceed $1,100 a week. Employers are not responsible for the employees' wages during this period; however, they must hold the job for the employee upon their return from leave. For more information, visit famli.colorado.gov (https://famli.colorado.gov/).

18. 

    8 Jan 2024

    Automatic Penalty Relief

    On December 19, the IRS announced a new program (https://www.irs.gov/newsroom/irs-helps-taxpayers-by-providing-penalty-relief-on-nearly-5-million-2020-and-2021-tax-returns-restart-of-collection-notices-in-2024-marks-end-of-pandemic-related-pause) to help taxpayers who have been hit with penalties for 2020 and 2021, but were unaware of the accumulating penalties due to a pandemic-era policy to halt sending penalty notices. IRS had temporarily stopped sending automated reminders to pay past due tax bills in February 2022. Penalties, however, continued to accrue, sometimes without the knowledge of the taxpayer. The IRS will resume its normal process of sending automated reminders this month. However, to ease the transition, it will automatically forgive penalties for certain taxpayers affected by this situation. Eligible taxpayers include individuals, businesses, trusts, estates, and not-for-profit entities with less than $100,000 of taxes for the tax years 2020 and 2021. The IRS will automatically grant the relief and refund the penalty if it has already been paid, or credit it to another outstanding liability. Check your tax transcript at irs.gov to determine if you received penalty relief, and if a refund is pending. You may contact the IRS after March 31 with questions about this program.

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