Abacus CPA is saluting all the fathers out there - being a dad isn't easy, but you make it look effortless and your hard work does not go unnoticed. Even though Father's Day typically consists of brunch, cookouts, or a night out on the town, we hope you are still looking forward to a day of celebration in quarantine. All of us are readjusting our Father's Day plans this year due to the coronavirus pandemic but that doesn't mean you can't celebrate yourself and the other
fathers in your life!
Have you been thinking about your financial plans during this time?
Short term and long term financial goals? Generational wealth?
If you've been wondering about wealth building and wealth preservation, how to create it, below you'll find an article that goes over the basics:
What steps have you taken to reposition yourself during COVID-19? It's time to start moving towards a financially healthy future. Investing in stock is a great way to start building time-withstanding wealth.
Warren Buffett's Advice For Investing In The Age of COVID-19
Think Long-Term: When investing in stocks, don’t think about it just as purchasing the stock itself, but rather as buying into a business that you expect to grow over the next decade or more. Taking the long view can help you worry less about day-to-day fluctuations, and it’s a much better path toward building up wealth.“People would be better off if they said ‘I bought a business today,’ not ‘I bought a stock today’ because that gives a different perspective on it,” Buffett said.
New Fathers: If your child was born in 2019, you may be able to deduct the medical expenses you paid. You might be eligible for the Child Tax Credit, the Child and Dependent Care Credit (commonly referred to as the “daycare credit”), and even the Earned Income Tax Credit, which is available for families with an
income of less than $55,000.
Adoptive Parent: If you adopted this year, you may be eligible for a credit of up to $13,840 per child. If they are considered special needs by the Department of Family Services, you could be eligible for the full credit amount.
Sports Dads: If you volunteer for your children’s teams or activities, you may be able to claim a charitable contribution deduction. You can deduct things like your mileage to and from the activity, as well as supplies, equipment, and uniform costs.
Filing Status: If you’re a single dad, don’t forget to file with the correct filing status. You may be eligible to file as Head of Household if you have physical custody of your children for more than half the year, are single, or provide the main support for your household. This can qualify you for lower tax rates, higher credit amounts, and potentially many other tax benefits.
June 10: Employees- If you work for tips and received $20 or more in
tips this May, report them to your employer.
June 15: Individuals- Make a payment of your 2020 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way.) This is the second installment- use Form 1040-ES.
June 15: Corporations- Deposit the second installment of
estimated income tax for 2020.
July 15, the new tax deadline, is only six weeks away! To ensure that you file on time, schedule