Personal Financial Planning

Do you want to manage your personal finances in Idaho Falls, but aren’t sure where to start? Would you like professional advice that can help you the most out of your finances, by creating a plan for your future? If you answered yes to either of these questions, then you are in the same boat that many Americans face these days. Whether you want to make a large purchase, save for retirement, or if an unexpected life event occurs, you want to be prepared. In today's economy it can be difficult to know how to create a solid personal financial plan, not to mention, all of the information available can be overwhelming to try to sift through. Why not save the headache and time, by having a professional help you with your personal financial planning? At Poston, Denney, and Killpack, PLLC, we want to give our clients the information that they want and the tools they need to create a personal financial plan that will be the best for their lifestyle. Below, you’ll find more information about why personal financial planning in Idaho Falls is vital to achieving your personal financial goals and tools to make the process just a little bit easier.

Why Is Personal Idaho Falls Financial Planning Important?

Creating a personal financial plan with a professional has numerous benefits that not only help to provide for your well-being, but the overall standard of living for your family. Some of the benefits that personal financial planning can provide, include:

Income and Cash Flow - Financial planning allows you to more easily manage your income and understand how much money you will need for things like, retirement, taxes, monthly expenditures, etc. By monitoring your income and spending habits, our Idaho Falls CPAs can help you design a budget to fit your life and goals.

Family Security - Making sure you have the proper insurance policies and coverage for your family can give you peace of mind.

Assets & Savings - Savings and assets provide a nice cushion for when emergencies occur. By hiring  Poston, Denney, and Killpack, PLLC, to create a personal financial plan, you will be able to plan for a lifetime of security.

Personal Idaho Falls Financial Tools

Organizing your Idaho Falls finances is one of the first things you will want to do when creating a personal financial plan for you and your family’s future. There are many online financial tools that can make organizing your finances a breeze. While we recommend going over your finances with a professional, these tools can make it easier to track your bills, student loans, and savings. Contact us today, to start creating a financial plan that is designed with your specific goals in mind. Organize your finances with the following tools:

Mint - Create budgets based on your spending, track and pay bills, and even check your credit score, when you sign up at Mint.com.

Shoeboxed - At Shoeboxed.com you can organize and digitize your receipts, without having to keep them in a literal shoebox.

Student Loan Hero - This site is designed to help you pay back those haunting student loans, fast and efficiently. Student Loan Hero allows you to track your loans and repayment efforts all in one easy to use interface.

Important Tax Planning Strategies

Nobody enjoys paying taxes. Our disdain for paying taxes is easily understood since taxes can prove to be one of the biggest expenses you will face over your lifetime. So when tax season does come around many people these days are scrambling to make ends meet. Even though we can’t avoid paying taxes, we can avoid the stress of owing money  by being prepared with a tax plan. Having an Idaho Falls tax planning strategy prepared by a licensed CPA can ease some of the stress when taxes come a-calling. Tax planning is a proven method to keep you from paying unnecessary taxes and by arranging your financial affairs in ways that can help to postpone and even avoid taxes. However, tax laws are more confusing than ever before, so many people don’t even know the first step in developing their own tax planning strategy. At Poston, Denney, and Killpack, PLLC, we can assist our clients in making smart choices for their financial future. Contact us today, so we can start creating the perfect tax plan for you.

Idaho Falls Tax Planning For Your Future

When planning for your future through tax planning, there are some basic strategies utilized by our licensed CPAs, these include but are not limited to:

Reducing Your Income - This tactic doesn’t mean making less money, it simply means reducing your AGI (Adjusted Gross Income) by investing money into a 401(k) or another similar retirement plan. You can also reduce your AGI by a variety of different income adjustments. Income adjustments include student loan interest paid, tuition and fee deductions, contributing to an IRA, moving expenses, self employment health insurance and more. Our CPAs can discover what types of adjustments you qualify for to save you the maximum amount of money on your Idaho Falls taxes.

Increase Your Withholding - Increasing your withholding means that more money will be taken out of your check throughout the year, but this is one way you can avoid owing money (and possibly getting a bigger refund) when tax season comes.

Increasing Your Deductions - Another key element in your Idaho Falls taxes to be aware of is your taxable income. Your taxable income is the amount of money left over after all of the deductions and exemptions have been taken out of your AGI. Many people can make basic deductions on their taxes, and some may even be able to itemize their deductions. Itemized deductions include gifts to charity, job related expenses, investment related expenses, tax preparation fees and more. Deductions and exemptions are determined by your filing status and any dependents you are claiming. One of the best ways to keep track of your potential deductions is by creating a spreadsheet for personal finance all year long.

Tax Credits - In a nutshell, tax credits can reduce the overall Idaho Falls tax you owe. These include college expenses, adopting children, and saving for retirement. Some people may qualify for credits like the Hope Credit, Lifetime Learning Credit, and the popular Earned Income Credit. At Poston, Denney, and Killpack, PLLC, we will be able to find what tax credits you qualify for and more when we design a specific tax planning strategy for you.

Financial Planning & Tax Preparation In Idaho Falls

Need help getting your taxes prepared and filed to the IRS? Poston, Denney, and Killpack, PLLC are the experts you can rely on for taxes in Idaho Falls.

We provide a number of tax services for individuals and businesses alike, including:

• Personal Financial Planning
• Estate Planning
• Elder Care
• Small Business Accounting
• Cash Flow Management

And more.

Sound Financial Planning to Maximize After-tax Income

If you want to get the most out of your taxes in Idaho Falls, it is imperative that you exercise sensible financial planning all year round. There are a number of areas in which good financial planning meets good tax planning in a way that helps people get the most out of both worlds. It is possible to maximize your after-tax income, it’s just a matter of taking advantage of all credits, deductions, and deferrals available to you.

By making use of these various options and requirements, other financial goals will be much easier to accomplish.

Idaho Falls Tax Planning Should Be a Year-Round Commitment

Not only will this help you stay out of trouble with the IRS, it will also help you get the most out of your income, allowing you to keep more of what you earn. Throughout the year, be sure to do the following:

Invest Your Tax Refund: An IRA is a wise place to invest your tax refund. Investors will often direct a percentage of their tax refund into an IRA as part of an investment strategy. They will then claim the deductions for next year’s tax time. When you invest your refund, you may get some of that back in your tax savings. This small step will yield long-term benefits.

Think a Few Moves Ahead: You may sometimes need to sell some of your investments. Whether it’s to re-balance your portfolio, or because your goals have simply changed, selling can potentially lead to taxes. That is why it’s important to choose what you are selling very carefully, in order to minimize your tax burden as much as possible.

Reorganize Your Investments: Your portfolio should be organized as wisely as possible in order to get the highest amount of growth for the least amount of taxes. For example, you will want to consider moving inefficient investments that are often taxed into a tax-deferred account (an IRA or a Roth IRA). Wise portfolio organization is one of the most important factors in financial planning for Idaho Falls taxes.

Learn How To Benefit from Your Losses: Always keep your portfolio balanced by replacing failing or slow-growing investments with better ones. Remember that it is possible to gain a tax deduction for your losses that will help make up for the taxes owed on the assets that have increased in value. This can be accomplished through a strategy known as “tax loss harvesting”.

Maintain Your Idaho Falls Tax Records

Keeping the proper documentation is imperative when it comes to Idaho Falls taxes. This will help keep you out of possible fines or penalties, as well as help you maximize your after-tax income. Keeping good records will make the entire process of analyzing and calculating your owed taxes much easier, and allows you a greater ability to report expenses that are tax deductible.

Make sure to keep your receipts organized in a secure folder. Other things you should be keeping include statements from:

-Banks
-Brokers
-Fund managers

And anyone else who provides financial information.

Get the Most Out of Your Personal Idaho Falls Tax Deductions

Getting the most out of your income means maximizing your personal tax deductions. The total amount of your tax deductions are subtracted from your taxable income, giving you your total tax bill.

As part of your Idaho Falls tax preparation habits, make sure to keep a detailed record of all deductible expenses, including keeping all receipts of tax-deductible expenditures in an organized folder, and recording gas mileage for business, medical, or charitable purposes. For owned or leased vehicles, this can include either the actual expenses, or the standard rate per mile.

There are many different expenses that can be deducted from your taxes that people often overlook, including:

Charitable contributions: Out-of-pocket charities can be written off, including the ingredients for food that is made for non-profit organizations such as food kitchens, or supply costs for school fundraisers.

Health insurance premiums: In some cases, you can deduct medical expenses that exceed 7.5 percent of your adjusted gross income.

Unusual business expenses: If your business can benefit from some special expenses, you can often write these off in your taxes. These expenses can include things such as animal food for junkyard owners who want to attract stray cats to feed on mice or rats, sunscreen protection for employees working at a car shop during the summer, or free gifts for customers.

Always keep an eye out for expenses you can write off on your taxes, and keep detailed records of them, including receipts.

Report All Idaho Falls Taxable Income

All income that is taxable needs to be reported on your tax return. Generally speaking, any amount of money that is included in your income is taxable with the exception of income that is tax-exempt by law. Non-taxable income may also need to be included on your tax return, although it will not be taxed.

The IRS understands that mistakes involving deductions and amounts can happen, and provides a number of ways to give citizens the chance to make up for these mistakes without unnecessary burden.

Failure to report income altogether, on the other hand, is a different matter. This situation can result in criminal charges for:

-Tax evasion

-Failure to report income

-Failure to supply information

Consistently reporting all taxable income will save you time, money, and energy in the long-term.

Idaho Falls Taxes

Idaho Falls Taxes For Residents

As a resident of Idaho Falls it’s important to know and understand what type of taxes you pay throughout the year. Do we need to pay estate taxes? What is our income tax rate in Idaho Falls? What credits are you eligible for to get a tax break?You can find out this information and more below. At Poston, Denney, & Killpack we want to make sure that all Idaho Falls residents and business owners are well informed about the taxes they are currently paying. If you live in Idaho Falls or any part of Idaho you are subject to the following Idaho Falls taxes:

Sales Tax

The rate of Idaho Falls sales tax is 6% ( this is the rate for the entire state of Idaho) Individuals pay this Idaho Falls tax when purchasing merchandise, goods, or services, some exemptions may apply. Sales tax in Idaho falls includes the sale, rental or lease of property and services. Prescription drugs are not taxed in Idaho Falls.

Use Tax

This Idaho Falls tax applies to goods that didn’t have sales tax that you use or store in Idaho Falls. Use tax is a tax that is usually meant for business owners. This tax is paid directly to the state and not the business owner. You can find more information about Sales and Use tax, here.

Property Tax

This tax applies to all real estate property owners. The state oversees property tax, but property taxes are collected and assessed by the county. Property taxes help to fund the local government. You can find out a rough estimate of what your property tax will be for 2017 by taking the value of your property and multiplying it by the average tax rate, minus exemptions. The current rates for Property Tax in the Idaho Falls area are:

• Average Urban Rate: 1.275%
• Average Rural Rate: .832%

Property Tax Exemptions

Homeowners Exemption - This exemption applies to owner-occupied primary dwellings. The rate for the Homeowner Exemption is determined by the Housing Price index annually.

Property Tax Reduction - Sometimes called the CIrcuit Breaker, this exemption applies to qualified low-income homeowners. To use this exemption homeowners must apply and qualify for the Property Tax Reduction each and every year.

Individual Income Tax

The rate for individual or personal income for the Idaho Falls resident varies depending on their income for the year this includes money that was made both in and out of the state). The rate for income tax in Idaho Falls is 1.6% to 7.8%. Depending on the individual's income will determine what tax bracket they fall into. The higher the earnings, the higher the tax rate. Idaho tax brackets are adjusted annually. You can find out what tax bracket you fall in for 2017, here.

There are credits that Idaho Falls  individuals can use to offset their income tax. These tax credits include:

• The Grocery Credit - To be eligible you must be an Idaho resident. The average Grocery Credit is about $100 per person.
• Credit for taxes paid to other states.
• Donation Credits - If you made donations to Idaho educational entities, rehabilitation facilities, and some non profit organizations, you are eligible for this credit.

Idaho does not tax benefits from Social Security or the Railroad Retirement Board. However, Idaho does tax all other sources of income, no matter the source.

Some states require additional taxes from their residents. Lucky for Idaho Falls residents, they don’t have to worry about paying a Inheritance, Gift, or Estate Tax.

• Inheritance/Gift Tax- Idaho Falls does not currently have an inheritance tax or gift tax.
• Estate Tax- Idaho Falls did have an Estate tax at one time, but it no longer does. The Idaho Legislature or Congress would have to change the current laws in order for an Estate tax to be reinstated.

If you would like more information on how to calculate your property tax and what exemptions you are eligible for, your Idaho Falls tax experts, Poston, Denney, & Killpack can guide you in the right direction. We also help with bookkeeping, small business tax information, and individual tax filing. Contact us today, to find out more about our tax services in Idaho Falls and how we can save you money.

Common Tax Problems in Idaho Falls

 New software is making it so many people are starting to do their taxes at home. Even with all the updates in this new technology, taxpayers filing their own taxes, without the help of a professional still seem to be running into common tax problems and mistakes. According to bankrate.com there are 10 common tax problems that people run into when filing without consulting a professional or a CPA. Some of the common tax problems are:

• Math Miscalculations and Computation Errors  - One of the most common problems, when filing your own taxes is bad math. Though there is no penalty for “wrong” math, you still might experience a delay or a different amount than you thought you would be receiving in your tax return, if not caught quickly enough. If you underpay on your taxes because of a miscalculation you might also receive a penalty for late and under payment of your taxes. Computation errors are another common mistake.Just like miscalculated math, this common tax problem occurs when a tax filer incorrectly enters the taxable income, withholding and estimated tax payments.
• Direct Deposit Dangers - A wrong account or routing number could cause you to lose your tax return completely. A CPA at Poston, Denney, & Killpack can help you create a plan that will avoid losing your money by filing a form 8888.
• Additional Income, Additional Filing Work - Independent contractors have additional filing work on their taxes. Forgetting the additional filing work could result in a possible late filing penalty if not caught in time.
• Missing the Deadline - Many people hold off until the very end to file their taxes. As long as you press enter or your tax return is postmarked by the deadline in April, you should be OK. If you still are unable to send your forms by the deadline, you then need to file a Form 4868, this will give you a six month extension. If you owe any taxes be sure to send it with your extension request. If you do not, you could face late or non filing penalties.

How To Avoid Common Tax Problems in Idaho Falls

When you consult with a CPA at Poston, Denney, & Killpack we can help you avoid the above problems and avoid any penalties or delays of your tax return. Even if you have the most up to date software for filing your taxes, nothing beats the assistance of an experienced tax preparation CPA. We help you avoid common tax problems by offering the following tax preparation services:

• Checking your tax return for any possible miscalculations, computation errors, and recent name changes that the IRS may look at.
• Filing your return electronically and safely by filling out a Form 8888
• How to adjust your payroll so you can get more money back every week.
• Show you any possible additional deductions that will limit your tax liability for the next year
• Own a business? We offer small business tax preparation services as well. We keep your books organized so you can get back to running your business.

Idaho Falls Property Taxes

Idaho Falls Property Taxes

If you own a home, you are subject to property tax. Property tax is a tax that homeowners must pay every year. This tax can vary all over the state of Idaho since percentages can vary from county to county. Poston, Denney, & Killpack CPA’s can help you put money aside for property taxes and help you assess what your property taxes may include based on the value of your property. So what is property tax? According to Wikipedia,“Under a property-tax system, the government requires or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.” These taxes are what help to fund community services. Towns use the levied taxes to help pay for schools, law enforcement, emergency responder wages, road construction and pay for trash and snow removal and any other services that help the community.

How are Property Taxes in Idaho Falls Levied?

The county assessor, calculates the total property tax levy by projecting the needs of the city or county for the year. Then they will calculate what the total budget is for the cost of all the needs of the community. This projected amount is that put against the amount of total residential properties. This final amount is what creates the percentage for that years property tax levy. Then the county assessor applies the percentage rate to assessed value of the home to determine what the homeowner will pay that year in property taxes. The Bonneville county assessor also defends values or appraisals using current sales information of comparable properties and makes adjustments accordingly. You can get a rough estimate for your house using this property tax calculator.

How Are Idaho Falls Property Taxes Collected?

There are a couple of ways that your Idaho Falls property taxes will be collected.One way that property taxes are collected is through a yearly imposition. Homeowners will be notified of the tax levy in early spring. Homeowners will then have six to nine months to put money aside to pay their property tax. This where you will want to have a consultation from an Idaho Falls CPA to help you choose the best options to save your money for the levy. These taxes are collected at the end of the year. Another way that Idaho Falls property tax is levied, is quarterly. Instead of a large sum due at the end of the year, the county assessor splits the tax into four payments throughout the year. This can help reduce the hardship of trying to save a much larger sum of money all at once. CPA’s can help to manage and possibly even reduce the cost of your property taxes.

CPAs for Idaho Falls Property Taxes

CPA’s can help reduce the risks of incomplete or late filings and help you take advantage of exemptions and other tax-mitigation opportunities. Contact Poston, Denney, & Killpack today for your free consultation for property taxes in Idaho Falls.

Estate Planning for Non-Traditional Circumstances

Nobody is going to live forever. This is undeniable fact of life and often times most of us simply don’t want to think about that will happen after we leave this life behind. But if you own assets such as real estate, a savings account, and other valuable possessions, it is imperative that these things be properly managed should you become incapacitated or deceased.

Idaho Falls estate planning services by a professional CPA will help you craft and implement an effective plan for what will happen with your assets. Good estate planning will help to minimize tax burdens imposed by state and federal agencies and allow your next of kin to enjoy the fruits of your hard labor. Without a properly executed will or power of attorney could end up costing you and your family thousands of dollars in taxes and forfeitures.

While most estate planning involves your spouse or children, there are a few instances when estate planning can be a little more ambiguous. This post is intended to briefly describe 3 non-traditional estate planning circumstances that may be encountered in these modern times. B no means does this post cover every aspect of options available and professional help from a CPA is strongly recommended. If you have any questions about any of these scenarios, please feel free to contact Poston, Denney, & Killpack PLLC in Idaho Falls for more information.

Estate Planning for Unmarried Couples

As law is currently written today, married couples enjoy more protections than unmarried couples do concerning estate planning. But this doesn’t mean that there aren’t options for those who decide not to tie the knot. Having a good plan in place will help you and your partner avoid the headaches that can be caused by the murky waters that is estate planning for unmarried couples.

1. Property - Legal ownership of property can be addressed by utilizing what is called Tenants In Common. This allows property to be legally owned by multiple people based upon a percentage. Another option available are Trusts. Trusts will spell out what should happen with your property should you become incapacitated or die, but your partner must also be a part of the Trust.
2. Retirement Plans and Life Insurance - If you have savings tied up in a 401(k), IRA, or pension plan, you may be able to designate your partner as a beneficiary of these retirement plans. These beneficiary designations will supercede anything written in your will so it is absolutely imperative to make sure your beneficiary designation is up to date. Finally, a life insurance policy with your partner listed as a beneficiary can help if for some reason your partner is not allowed by law to be a beneficiary of your retirement benefits or other assets. Some insurance companies will not allow unmarried partners to become a beneficiary so it is important to shop around before you buy.

Estate Planning for Childless Couples

If you and your spouse do not have any children, you still need estate planning to make sure your assets and property are used in accordance to your final wishes. Many couples without children may opt to leave their estate to a charity of their choice. Some may leave their assets and estate with their surviving extended family members. So, unless you don’t mind the state taking possession of your estate after you pass away, it is important that you and your partner have a will in place. Designating beneficiaries of your life insurance and retirement is also a great idea that will help lessen the stress on your surviving extended family members. A professional CPA will help guide you and your spouse when you decide who to leave your estate with.

Estate Planning for Digital Assets

Living in the 21st century comes with a litany of assets you may not even realize you have. If you were to pass away tomorrow, what would happen to your Gmail account? How about your Facebook and Pinterest accounts? Your extensive iTunes library? Or what about your gardening blog that earns you $5,000 per month in ad revenue? Many people only think about what will happen to their homes and bank accounts when they die. But in today’s age we often forget that we own much more than just money and land.

Most of these online accounts are managed by the legaleze found in the Terms of Service Agreement listed when you clicked “I Agree” (probably without even reading them!). As federal and state law catches up with technology, it is becoming easier for next of kin to get control of these digital assets. But, like with anything else dealing with estate planning, planning now will help your next of kin avoid headaches once you leave this life behind.

Some tech companies are implementing features and tools that will help mitigate issues that can arise when somebody dies, For instance, Google has released what is called “Inactive Account Manager.” This allows a Google account owner to designate another Google user as an account manager should the former not be able to log into their Google account after a set amount of time (which would happen if you died and didn’t leave a password behind - I have mine set up to allow my wife access after three months of inactivity). Another option is to keep a spreadsheet with all of your usernames and passwords recorded down. Then, your will should spell out in clear terms who should be allowed possession of this credential spreadsheet.

When it comes to estate planning for digital assets, it is important for you to detail exactly what you wish to happen with your accounts, profiles, and online presence. Without these things clearly spelled out in your will, it can become next to impossible for your next of kin to take control of your digital assets.

Idaho Falls Estate Planning - Additional Information 

The above mentioned scenarios are just a few of the estate planning issues that people may face when it comes time to figure out what needs to be done with their assets. The very best information you can get will be provided by a licensed and professional CPA or estate lawyer. It is our recommendation that you contact and hire a professional so that you can be sure your estate planning is in good hands, and according to your final wishes, after you leave this life behind. Contact Poston, Denney, & Killpack PLLC in Idaho Falls for estate planning services. We can help you and your spouse navigate all of your options regarding what will happen with your assets by helping you write and execute a will. We also help with personal financial planning and elder care financial planning.