Reed Financial Planning LLC Robert Reed, PhD, CFP

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Reed Financial Planning LLCRobert Reed, PhD,
CFP
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Fee-Only Planning for Working America
Reed Financial Planning LLC
Teachers State Employees
(STRS/OPERS) Small Business Creative Arts
Professionals
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Comprehensive
Reed Financial Planning LLC

• Taxes
• Investments
• College Saving
• Business Start Up
• Retirement Planning

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Reed Financial Planning LLC

• Income Tax Tips

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Reed Financial Planning LLC

• TOPICS COVERED
• How tax calculated
• AMT mess
• Housing
• Retirement
• Education
• General issues

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Reed Financial Planning LLC

• How is your tax calculated?
• Income
• - Adjustments
• AGI (Adjusted Gross Income)
• - Deductions
• Taxable Income
• Total Tax Liability
• - Credits
• - Withholding
• Tax Due or Refund

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Reed Financial Planning LLC

• AMT MESS
• Processing your return might be delayed if you
  file
• Education Credits (Hope, Lifetime Learning)
• Energy Credits
• Mortgage Interest Credit
• Child / Dependent Care (if filing 1040A)

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HOUSING
Reed Financial Planning LLC

• Mortgage debt forgiveness
• amount of debt forgiven usually taxed
• 2007-2009 up to 2M forgiven debt not taxed.
• Only for primary residence, major home
  improvement
• PMI deduction (Private Mortgage Insurance)
• if bought/refinanced in 2007
• put down less that 20 cost
• check your mortgage statement

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RETIREMENT
Reed Financial Planning LLC

• Retirement saving before education saving
• Retirement Savings Credit
• up to 1,000 credit on 2,000 saved
• Deductible IRA
• even if in company plan (403b, Def comp)
• OPERS / STRS dont count
• Spousal IRA
• Even if spouse not wage earner

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Education
Reed Financial Planning LLC

• Credits (kids must be dependents)
• Hope credit
• 100 first 1,100 and 50 next 1,100
• up to 1,650 per student
• Lifetime Learning
• 20 of first 10,000
• up to 2,000 per return

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Reed Financial Planning LLC
Education

• Deductions
• Tuition and Fees
• up to 4,000 (MFJ lt 130k income)
• up to 2,000 (MFJ 130k 160k income)
• Student Loan Interest
• up to 2,500 interest (MFJ lt140k income)

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COLLEGE SAVING
Reed Financial Planning LLC

• Dual purpose accounts
• Roth IRA
• Not count toward FAFSA (grants, scholarships)
• After 5 years (if used for higher education)
• withdraw principal tax free
• earnings taxed but no 10 penalty
• Savings Bonds
• No tax if cashed for college tuition (no dorms,
  etc)
• If MFJ 98,400 - 128,400

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COLLEGE SAVING
Reed Financial Planning LLC

• Dedicated Education accounts
• Coverdale (education IRA)
• 2,000 annual
• Can use for K-12
• Covers wider range of expenses
• 529 plans
• Last choice
• Good for grandparents with estate tax issues

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GENERAL ISSUES
Reed Financial Planning LLC

• File electronically and direct deposit
• Safer faster
• Free electronic filing
• income lt54k.
• www.irs.gov
• look for Free File
• Charity deductions need receipt

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GENERAL ISSUES
Reed Financial Planning LLC

• No capital gains tax
• MFJ lt 63,700 income 2008-2010
• Married Filing Separate
• still may be worthwhile because Ohios tax
  structure
• lose many credits deductions
• child care
• adoption
• education (Hope, Lifetime Learning), student loan
  deduction
• Roth IRA

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Thank youReed Financial Planning LLCRobert
Reed, PhD, CFP