Are Your Kids Covered when away From Home?

Before you start packing the socks, swimsuits, and insect repellent for your child’s week at summer camp, check to see if your health insurance covers your children while they’re away from home. Most of the people forget to check their children’s and vehicles insurance before travelling and if something uncertain happens on the trip thus leads to a substantial loss both financially and emotionally. Even if you renting out your RV from https://rvrentalscout.com/florida/ – best RV vacations make sure to go through its paperwork and see what all does the money you have paid covers. You’ll want to make sure you’re protected in case something happens that’s more serious than a skinned knee or common cold.

Read the Fine Print

Many HMO policies cover only emergency room visits outside of a specified coverage area. You may need to supplement your policy if your child has health issues or you’re worried about the cost of transportation home from a remote locale.

Check with the Camp

Some camps buy accident-and-sickness coverage for all their campers and include that cost in the camp fee. Other camps have arrangements with insurance companies that offer families low-cost policies covering their children while they’re at camp. And many camps have on-site centers that provide health services.

Trip Insurance for Teens

You may need to purchase trip insurance when your teen travels. These policies tend to be inexpensive, but read them carefully because there could be a lot of exclusions. If your older child becomes ill while traveling and has to come home, find out if the company sponsoring the teen trip will refund the cost of the unused portion of the trip. Also find out who will pay for an emergency evacuation should that become necessary. If someone you love gets injured, contact New Jersey Personal Injury Attorneys to avoid struggling with serious injuries that contribute to financial losses and psychological traumas.

Coverage for College Students

If your child’s camp days are over and you’re sending him or her away to college this fall, check with your health plan regarding coverage. Many schools offer low-cost health insurance to their students. However, don’t assume that everything will be covered. Some plans have high deductibles and policy limits that aren’t designed to cover catastrophic illnesses.

To learn more about your insurance needs give us a call today. Our trained staff of professionals are always available to answer any questions you may have.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Don’t Forget Your Taxes when You Split Your Assets in a Divorce

Divorcing couples should pay close attention to tax issues, even if spouses are in complete agreement about how to divide their assets. Failing to take taxes into account may leave one spouse with a smaller net share than anticipated. To make all this process simpler just like how people can now file to a social security office in Omaha by online application in the same manner people can now even apply for asset separation due to any form of separation online.

 

Call It Taxable — or Not?

 

The way in which payments made by one spouse to the other are designated can have significant tax consequences. Alimony is generally deductible by the payor and taxable to the recipient. Child support is not tax deductible by the payor and does not represent taxable income to the recipient.

 

Dependent Children

 

Couples with dependent children also need to consider which spouse will be entitled to claim dependency exemptions for the children. This also can be important for determining eligibility for certain tax credits, such as the child tax credit.

 

After-tax Values

 

Dividing assets such as investments means looking beyond their current market values. Since selling an asset in the future may create a tax liability, couples should determine the “adjusted tax basis” (essentially, the cost) of each asset before they reach a settlement. The value of assets that seem equal may no longer be equal after taxes are taken into account.

 

Dividing Retirement Benefits with a QDRO

 

A qualified domestic relations order (QDRO) is a court order that spells out the property rights of a spouse or dependent during a divorce with respect to qualified retirement plan assets (such as the assets in a 401(k) account). A QDRO is required in order to transfer all or a portion of the benefits in a qualified retirement plan from one spouse to the other without losing the plan’s tax advantages. Mistakes can be costly.

 

Beyond Taxes

 

Divorcing couples who want to name new beneficiaries for their life insurance policies, retirement accounts, and other accounts whose assets pass through beneficiary designations should be sure to do so promptly. Otherwise, an ex-spouse beneficiary could receive policy death benefits or assets left in accounts should the account holder die unexpectedly.

 

All of these issues can be complex for divorcing couples. Professional advice is essential so give us a call today for more information.

 

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Are You Sure all of Your Valuables are Covered Under Your Insurance Policy?

Looked through your homeowners policy lately? While it may not be at the top of your reading list, knowing what your policy covers — and doesn’t cover — may save you money and grief later on by having the correct home insurance agency signed.

The following types aren’t covered under standard homeowners policies.

  •  Flood damage. Most policies cover rain damage but specifically exclude flood damage. Coverage is available in limited areas through the National Flood Insurance Program.
  •  Earthquake damage. You can get special coverage through state-sponsored entities in earthquake-prone areas or from private companies that offer riders covering earthquake damage.
  •  Vehicles on your property. Most homeowners policies cover your house and buildings but not cars, motorcycles, boats, or other vehicles that are stolen from or damaged on your property.
  •  Dorm room furnishings. Property in a dorm room probably won’t be covered under your homeowners’ policy. Buy a separate policy.
  •  Jewelry, art, and other valuables. Typically, you’ll need a separate rider for these items.

To learn more about the insurance coverage you and your business needs, give us a call today.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Five Strategies for Tax-Efficient Investing

As just about every investor knows, it’s not what your investments earn, but what they earn after taxes that counts. After factoring in federal income and capital gains taxes, the alternative minimum tax, and any applicable state and local taxes, your investments’ returns in any given year may be reduced by 40% or more.

As explained in this Investors Underground review, day traders can learn a lot by collaborating with each other.

For example, if you earned an average 6% rate of return annually on an investment taxed at 24%, your after-tax rate of return would be 4.56%. A $50,000 investment earning 8% annually would be worth $89,542 after 10 years; at 4.56%, it would be worth only $78,095. Reducing your tax liability is key to building the value of your assets, especially if you are in one of the higher income tax brackets. Here are five ways to potentially help lower your tax bill.1

Invest in Tax-Deferred and Tax-Free Accounts

According to Webtaxonline tax-deferred accounts include company-sponsored retirement savings accounts such as traditional 401(k) and 403(b) plans, traditional individual retirement accounts (IRAs), and annuities. Contributions to these accounts may be made on a pretax basis (i.e., the contributions may be tax deductible) or on an after-tax basis (i.e., the contributions are not tax deductible). More important, investment earnings compound tax deferred until withdrawal, typically in retirement, when you may be in a lower tax bracket. Contributions to non-qualified annuities, Roth IRAs, and Roth-style employer-sponsored savings plans are not tax deductible. Earnings that accumulate in Roth accounts can be withdrawn tax free if you have held the account for at least five years and meet the requirements for a qualified distribution, but since this take work, is better to use some accounts payable solution which help automatizing the process way more.

Pitfalls to avoid: Withdrawals prior to age 59½ from a qualified retirement plan, IRA, Roth IRA, or annuity may be subject not only to ordinary income tax but also to an additional 10% federal tax. In addition, early withdrawals from annuities may be subject to additional penalties charged by the issuing insurance company. Also, if you have significant investments, in addition to money you contribute to your retirement plans, consider your overall portfolio when deciding which investments to select for your tax-deferred accounts. If your effective tax rate — that is, the average percentage of income taxes you pay for the year — is higher than 12%, you’ll want to evaluate whether investments that earn most of their returns in the form of long-term capital gains might be better held outside of a tax-deferred account. That’s because withdrawals from tax-deferred accounts generally will be taxed at your ordinary income tax rate, which may be higher than your long-term capital gains tax rate (see “Income vs. Capital Gains”).

Income vs. Capital Gains

Generally, interest income is taxed as ordinary income in the year received, and qualified dividends are taxed at a top rate of 20%. (Note that an additional 3.8% tax on investment income also may apply to both interest income and qualified (or non-qualified) dividends.) A capital gain or loss — the difference between the cost basis of a security and its current price — is not taxed until the gain or loss is realized. For individual stocks and bonds, you realize the gain or loss when the security is sold. However, with mutual funds, you may have received taxable capital gains distributions on shares you own. Investments you (or the fund manager) have held 12 months or less are considered short term, and those capital gains are taxed at the same rates as ordinary income. For investments held more than 12 months (considered long term), capital gains are taxed at no more than 20%, although an additional 3.8% tax on investment income may apply. The actual rate will depend on your tax bracket and how long you have owned the investment.

Consider Government and Municipal Bonds

Interest on U.S. government issues is subject to federal taxes but is exempt from state taxes. Municipal bond income is generally exempt from federal taxes, and municipal bonds issued in-state may be free of state and local taxes as well. An investor in the 32% federal income tax bracket would have to earn 7.35% on a taxable bond, before state taxes, to equal the tax-exempt return of 5% offered by a municipal bond. Sold prior to maturity or bought through a bond fund, government and municipal bonds are subject to market fluctuations and may be worth less than the original cost upon redemption.

Pitfalls to avoid: If you live in a state with high state income tax rates, be sure to compare the true taxable-equivalent yield of government issues, corporate bonds, and in-state municipal issues. Many calculations of taxable-equivalent yield do not take into account the state tax exemption on government issues. Because interest income (but not capital gains) on municipal bonds is already exempt from federal taxes, there’s generally no need to keep them in tax-deferred accounts. Finally, income derived from certain types of municipal bond issues, known as private activity bonds, may be a tax-preference item subject to the federal alternative minimum tax.

Look for Tax-Efficient Investments

Tax-managed or tax-efficient investment accounts and mutual funds are managed in ways that may help reduce their taxable distributions, and here you can find the best and most professional Accountants in the finance business. Investment managers may employ a combination of tactics, such as minimizing portfolio turnover, investing in stocks that do not pay dividends, and selectively selling stocks that have become less attractive at a loss to counterbalance taxable gains elsewhere in the portfolio. In years when returns on the broader market are flat or negative, investors tend to become more aware of capital gains generated by portfolio turnover, since the resulting tax liability can offset any gain or exacerbate a negative return on the investment.

Pitfalls to avoid: Taxes are an important consideration in selecting investments but should not be the primary concern. A portfolio manager must balance the tax consequences of selling a position that will generate a capital gain versus the relative market opportunity lost by holding a less-than-attractive investment. Some mutual funds that have low turnover also inherently carry an above-average level of undistributed capital gains. When you buy these shares, you effectively buy this undistributed tax liability.

Put Losses to Work

At times, you may be able to use losses in your investment portfolio to help offset realized gains. It’s a good idea to evaluate your holdings periodically to assess whether an investment still offers the long-term potential you anticipated when you purchased it. Your realized capital losses in a given tax year must first be used to offset realized capital gains. If you have “leftover” capital losses, you can offset up to $3,000 against ordinary income. Any remainder can be carried forward to offset gains or income in future years, subject to certain limitations.

Pitfalls to avoid: A few down periods don’t necessarily mean you should sell simply to realize a loss. Stocks in particular are long-term investments subject to ups and downs. However, if your outlook on an investment has changed, you may be able to use a loss to your advantage.

Keep Good Records

Keep records of purchases, sales, distributions, and dividend reinvestment so that you can properly calculate the basis of shares you own and choose the shares you sell in order to minimize your taxable gain or maximize your deductible loss.

Pitfalls to avoid: If you overlook mutual fund dividends and capital gains distributions that you have reinvested, you may accidentally pay the tax twice — once on the distribution and again on any capital gains (or under-reported loss) — when you eventually sell the shares.

Keeping an eye on how taxes can affect your investments is one of the easiest ways you can enhance your returns over time. For more information about the tax aspects of investing, consult a qualified tax advisor.

Source/Disclaimer:

Example does not include taxes or fees. This information is general in nature and is not meant as tax advice. Always consult a qualified tax advisor for information as to how taxes may affect your particular situation.