We are midway through the year.  Before you know it, it will be holiday season.  Now is a good time to like at your expenses to find ways to cut them down and save money.

1. Know your expenses. Keep track of all of your expenses from the fixed expenses like your mortgage to the variable expenses i.e., coffee, gas, groceries and recreation.
2. Once you have an idea of what you spend in a month, you can begin to organize your expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as car maintenance.
3. Set a savings goal. One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—anything from a down payment for a house to a vacation—then figure out how long it might take you to save for it.
4. Set priorties. After expenses and income, goals will have the largest impact on your money.  Set both long term and short term goals.  For example: 

                  Short term goals (1-3 years);Emergency fund (3-9 months of living expenses), vacation, down   payment for a car.

                  Long term goals (4+ years); Retirement, Children’s education

Spring is here and with the warm weather comes vacation.  Nothing could ruin a vacation more than a financial mishap while traveling.  Here are a few tips to ensure the fun, relaxing vacation we all desire.

1. Clean your wallet. Only take necessary cards and information.
2. Use credit cards for major purchases.
3. Take a backup credit or debit card.
4. Beware of fake ATM’s or ATM’s compromised with spy ware.
5. Make copies of important financial information to take with you.
6. Inform the bank and credit card companies of your coming travel plans.
7. Use the hotel safe.
8. Protect your cash.
9. Watch out for crowds and pickpockets and purse snatchers.
10. Stay Organized
11. Research foreign destinations using multiple resources before travel.
12. Keep watch of your spending and hold onto receipt purchases.

When traveling for business www.entrepreneur.com suggests the following to save money and stay safe:

1. Fly with just one airline or book one hotel chain.
2. Travel with only carry-on luggage.
3. Use Uber.
4. Find alternatives to hotels (Airbnb for example).
5. Be flexible with your dates; staying an extra day or two can drop airline and hotel prices significantly.
6. Use coupon sites such as, RetailMeNot, Expedia, etc.
7. Don’t pay with cash.
8. Ask locals for restaurant suggestions.
9. Know your travel deductions.
10. Find alternatives to traveling like Skype, Hangouts and GoToMeeting and have virtual meetings.

What the 2018 tax brackets, standard deductions look like under tax reform

2018 Income Tax Brackets:

• Capital Gains – Capital gain rates remain the same as 2017 at 0%, 15% and 20%. However because of the changes in individual tax rates the 2018 thresholds have changed. For 2018, the 0% rate is for taxable income up to $77.200 for married filing jointly, 15% for taxable income between $77,201 and $479,000 and the 20% for taxable income greater than $479,001.

Standard Deduction Increased:

For tax years beginning after 12/31/17 and before 1/1/2026, the standard deduction is increased to:

Tender Hearts is proud to participate in the Seventh Annual Delaware Mud Run to support Leukemia Research. This team is going down and dirty in the mud to help raise money for cancer warriors. Get yourself on board by supporting this team! We appreciate your support!

Date: Sunday September 20, 2015
Location: Frightland – Middletown, DE

Learn More: https://www.elleevance.com/DEMudRun2015/teamlanding.aspx?teamidc=2006

In Memory of Nelson R. Talbott

Can’t Pay Your Tax Balance?

Your just received you tax return and can’t pay the balance due in full. What do you do?

• FILE YOUR RETURN ON TIME.  This avoids the penalties for late filing.
• RESPOND TO ALL NOTICES.  “Do Not” ignore the taxing authorities.
• Pay as much as you can when you file the return.  The outstanding balance is subject to interest and late payment penalties.  Paying as much as you can will minimize these charges.
• The IRS will give you up to an additional 120 days to pay in full.  Interest and penalties still continue to accrue.
• If you can finance the full balance, the interest charged by your bank or credit card company is usually less than the combination of interest and late payment penalties.
• You can enter into an installment agreement with the IRS and state taxing authorities.  There is a one-time user fee to set up the IRS installment agreement.  The installment payments can be made by a variety of methods:

o   Direct debit from your bank account;

• Payroll deduction from your employer;
• Payment via check or money order;
• Payment by Electronic Federal Tax Payment System;
• Payment by credit card via phone or Internet; or
• Payment by Online Payment Agreement.
• If your liability cannot be satisfied through any of the methods listed above. You may, repeat may, be eligible for an Offer in Compromise due to doubt as to collectability if your assets and income are less than the full amount of tax liability.  The IRS is stingy in accepting Offers in Compromise, and as such; they should be viewed as a last resort.

As always, this is only meant as a brief overview.  If you feel that we can be of further assistance to you, please contact our office to set up an appointment.

Email us at: [email protected]

Call us at: 302-239-3500

Visit our website: http://www.dohertyandassociates.com

– Doherty & Associates Team