Want to lower your tax bill?

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There are a number of opportunities to offset prior-year income and capture credits.

Areas to look at include:

  1. Retirement plan contributions
  2. Deductions
  3. Penalties
  4. Credits

Retirement plans: Retroactive contributions

Your traditional Individual Retirement Account, or IRA, offers the biggest potential bang for the buck.

The Internal Revenue Service (IRS) allows taxpayers to make deductible prior-year contributions all the way up to the tax-filing deadline.

For tax year 2020, total contributions to all of your traditional and Roth IRAs for taxpayers under age 50 cannot be more than either $6,000, or your total compensation for the year if you earned less than that amount. Those 50 and older can make an additional $1,000 catch-up contribution, for a total of $7,000.1

Your actual tax deduction, however, may be limited if you or your spouse are covered by a retirement plan at work and your income exceeds certain levels.

Eligible taxpayers can also make retroactive contributions to their Roth IRA until April 15. Different phaseout limits apply for Roth contributions.

Because Roth IRAs are funded with after-tax dollars, your contribution will not yield a current-year tax deduction, but it could potentially produce a better investment return since earnings upon retirement can be distributed tax free.

Tax deductions: Roll up your sleeves

Most taxpayers take the standard deduction, a fixed dollar amount set forth by the IRS that reduces the amount of income on which they are taxed.

Why? Because it’s a lot less work. You don’t have to keep track of your expenses, or individually deduct them on IRS Schedule

As a result, many taxpayers who previously itemized deductions may find it more beneficial to claim the standard deduction this year.

Nevertheless, some people may opt-out of a standard deduction because they keep track of their expenses in an organized manner. For example, business owners claiming a tax deduction on vehicle mileage may keep a track of it by using online tools such as MileIQ or similar mileage tracking apps that can track logs and calculate mileage for each trip used for business travel.

Tax penalties

The only thing worse than giving Uncle Sam his due is leaving him a tip.

To avoid a potentially hefty late-filing penalty, you must submit your income tax return on time, regardless of whether or not you can afford to pay.

Indeed, the failure-to-file penalty can be as much as 5 percent of your unpaid taxes for each month or part of a month that your tax return is late, up to 25 percent of your unpaid taxes.

Submitting your tax return electronically ensures greater accuracy than mailing it in since the IRS e-file system flags common errors and kicks back returns for correction.

Tax credits

When it comes to lowering your taxable income, you are your best advocate.

Tax deductions, which reduce the amount of your income subject to tax, are great, but tax credits, which reduce your tax bill dollar for dollar, are even better. So don’t leave any tax credits or deductions for which you are eligible on the table.

Families with dependent children may be eligible to claim a credit of up to $2,000 per qualifying child under the Child Tax Credit.

If you paid for someone to care for your child, spouse, or dependent so you could work or look for a job, you may be able to claim the Child and Dependent Care Credit.

Similarly, those paying for higher education expenses may be able to claim one of two tax credits: the American Opportunity Tax Credit, or the Lifetime Learning Credit. You cannot claim both credits for the same student in the same year.

If you haven’t yet filed your tax return, there’s still much you can potentially do to minimize the amount you may owe.

By taking advantage of tax-favored retirement tools, filing an accurate return, and educating yourself on available deductions and credits, you might just save enough to pay off your credit card debt or catch a flight somewhere warm

Preventing Frozen Pipes for Business

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Cold temperatures can reach areas of your facility that you seldom visit or cannot see, such as:

  • Crawl spaces
  • Closets
  • Enclosed spaces (e.g., attics, lofts, roof spaces)
  • Warehouses
  • Isolated storage areas

Strategies to Help Prevent Frozen Pipes

Some prevention strategies to consider:

  • Properly insulate and/or provide approved heat tracing for water-filled pipes located in exterior walls or unheated spaces.
  • Drain any piping that is not required during the winter months.
  • Maintain a minimum temperature of 40° F (4.4° C) in building areas with processes susceptible to freezing, wet-pipe sprinkler systems, fire pump houses and dry-pipe valve enclosures.
  • Ensure that anti-freeze sprinkler systems have sufficient concentration (appropriate specific gravity readings) of antifreeze to withstand freezing weather.
  • Inspect dry systems to help ensure air settings are correct, air maintenance systems are in good operating condition, and any pipe closets are well insulated. If any heat tape or heating systems are being used, ensure that they are UL-listed for this specific purpose and are in good operating condition. Dry-pipe sprinkler systems low points and auxiliary drains should be opened and drained of any water or condensation.
  • Any branch lines on wet sprinkler systems exposed or subject to extreme cold weather should be insulated and heat traced. Electric heat tracing products should be UL-listed for this specific purpose.
  • Fire pump test headers should be checked to ensure they have been properly drained.
  • Fire pump and dry-pipe sprinkler system equipment rooms should be checked routinely to ensure the heaters are in good operating condition.
  • The use of low temperature supervision can help to ensure rooms are being properly heated.

 

https://www.travelers.com/resources/facilities-management/preventing-frozen-pipes-for-businesses

Client Spotlight: GreenRoots

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GreenRoots
COVID19 Response in Chelsea and East Boston

As an environmental justice organization serving some of MA’s most vulnerable residents, GreenRoots has trumpeted for years that our neighborhoods would be hit first and worst by a disaster. However, we anticipated that the crisis would be climate-related, not the COVID19 pandemic that is ravaging our communities.

Chelsea and East Boston continue to be the hardest-hit communities in MA. In the first pandemic wave, Chelsea’s infection rate was 6x higher than Massachusetts’ rate and higher than the hardest hit boroughs in New York City. Our neighbors fell ill and were dying to a devastating degree. Now, in the newest surge, Chelsea continues to have a consistently high infection rate. East Boston is identified as the hardest hit Boston community, with rates equaling or surpassing those in Chelsea. We are just seeing the beginning of the long-term impacts, both health and economic, of COVID19 in both these communities.

GreenRoots responded to the crisis swiftly and decisively, and continues to play a leadership role in the pandemic response for all of our neighborhoods on both sides of the Chelsea Creek.
Building systems to address community needs was a key initial focus of GreenRoots. On March 11th, GreenRoots coordinated a call of numerous Chelsea stakeholders to plan a coordinated response for the COVID-19 pandemic. This initial call turned into Chelsea’s Pandemic response team, with over 75 stakeholders, 10 working groups, with over 65 days of daily calls. GreenRoots was also instrumental in developing and implementing the East Boston Mutual Aid Network. Both in Chelsea and East Boston, these two systems provided the backbones for community-led responses. In addition, GreenRoots’ coordinated effort around public health (including a letter to Governor Baker with 47 community signatories) led to increased testing and National Guard support for food distribution.

GreenRoots was a founding partner of the One Chelsea Fund, a cash assistance program facilitated through the United Way in collaboration with the City of Chelsea, The Neighborhood Developers and La Colaborativa.  Together, we raised more than $1.3 million for distribution to Chelsea residents. To learn more about the fund, check out a One Chelsea Fund Video. GreenRoots distributed approximately 1,700 checks ($425,000 in total) to residents. We are now launching phase II of the fund which will be directed to address anti-displacement efforts in Chelsea. In East Boston, our staff collaborated with Centro Presente which distributed $155,000 to local residents; and weekly boxes of food to food insecure families.

In addition to the aforementioned activities, GreenRoots helped with food distribution, diaper donations, funds for funerals, distributing PPE and multi-lingual message and much more.
To learn more, visit www.greenrootschelsea.org.

Stop Leaks Before It’s Too Late

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Fire might be a homeowner’s greatest fear, but some insurance company will tell you that water is the far more common cause of property damage, even if you don’t live in an area subject to flooding. And it can come from many sources: A failing water heater, a burst pipe, a broken supply line under your sink, a clogged toilet, or even a split hose connected to your washing machine.

That is why it is critical to keep a close eye on your electrical appliances, such as a water heater, and have them repaired by contacting a popular Water Heater Repair company in your area. While noise from a water heater is normal, sounds like humming, knocking, screeching, or tapping should be investigated to rule out the need for repairs or replacement parts.

Just as it’s essential to have a smoke detector in each of your home’s bedrooms and common areas, you’d be wise to install leak detectors in places where water damage could start: The laundry room, water heater closet, the bathroom, under your kitchen sink, and so on. Most plumbers are able to install leak detectors and if you don’t already know a reliable plumber, simply search ‘plumber near La Cañada Flintridge‘ or wherever you live. It’s always better to be safe than sorry and if you do notice a leak somewhere in your home, it’s vital that you get it fixed as soon as possible.

Leaks need to be treated with urgency no matter where they come from or how they are caused. There are quite a lot of emergency plumbing services that could help you in this regard. This leak should be treated as soon as possible as dampness or waterlogging can result in mold growth. Although mold isn’t always visible, it can still seriously harm your home and health. You would then be required to look for mold damage restoration services that can help in clearing the mold and restoring the water damage.

Water shut-off devices are installed by a plumber directly onto your water line, a flow-based water leak detection device monitors the flow of water throughout your home. If an unusual activity or flow of water is detected – probably caused by a leak somewhere in your plumbing or pipes – the device will alert you first and then shut off your water supply to help minimize damage.

Many insurance companies also offer a break on your home insurance if you install water leak detection systems. A one-time investment can end up paying for itself over time.

Tips to Avoid Finacial Stress

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Whether you worry about contracting COVID-19 or not, chances are you share in the financial stress felt by millions during the last few months.

There are steps you can take today to help put some of your fears to rest. But first, a look at why controlling stress is important.

Tips to manage stress

In the case of the pandemic, the CDC suggests strategies for relieving stress. These include meditating, volunteering, taking breaks from reading the news, eating well, exercising, and using counseling or therapy services if needed.

If you are currently experiencing cash flow challenges and haven’t done so already, reach out to your creditors, and any other financial institution with whom you do business to discuss payment leniency.

The financial checkup

Your next move is to review the money that comes in and goes out every month to make sure you have a firm handle on your cash flow situation to possibly uncover some ways to reduce expenses.

Investors should ensure that their portfolios are well-balanced and reflect their financial goals, time horizon, and risk tolerance. Many investors rely on guidance from a financial professional.

Retirees can create dependable income streams (Annuities, Pensions, in addition to Social Security) to help shelter themselves from volatility. Those in the accumulation phase can establish an emergency fund of 3-6 months worth of expenses held in cash.

While it’s critical to review your financial position, it’s imperative to also address your risk management and estate planning needs.

This includes Disability Insurance, to protect your income if you become too ill or injured to work. If you have coverage through your employer, make sure you’re absolutely certain how the plan works – what % of your income it would replace (60% is most common but can be less) and if it would be taxable. The last thing you need at that point is an unpleasant surprise.

Life insurance is also of critical importance, to protect those who are financially dependent upon you. Be sure to review the coverage you have in place (if any) and make sure it’s up to date. Many times, people set up coverage early on, but don’t update it as life events occur, such as marriage, children, buying a house, etc.

The same concept pertains to updating the beneficiary designations on your retirement accounts, insurance policies, and address overall Estate Planning needs.

Being proactive with your finances puts you back in the driver’s seat, which may not solve all your immediate challenges, but can reveal a path forward to restoring financial wellness and help to manage stress.

5 Summer Wellness Tips

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Summer is an exciting time of the year that is typically filled with cookouts, outdoor activities, and other events. To promote a happy, healthy summer, try following these five wellness tips:

  1. Drink plenty of water. Dehydration in the summer months can make you more susceptible to heat exhaustion and heatstroke. To avoid symptoms of dehydration such as dizziness, weakness, and fatigue, try to drink at least eight to ten glasses of water throughout the day.
  2. Watch what you eat at summer cookouts. Common cookout foods like burgers and hot dogs are full of fats that can make you feel lethargic. Sticking to lighter more refreshing foods like fish, pasta salads and watermelon can give you more energy while still satisfying your appetite.
  3. Protect yourself from the sun. Protect yourself from the harmfulness of UV rays by wearing protective clothing, staying in shaded areas during the sun’s highest points (from 10 a.m. to 4 p.m.) and using a sunscreen with an SPF of at least 15. It may also be a good idea to install an air conditioner (get in touch with professionals from brookshvac.com/ac-installation/) so that you don’t have to worry about sweating at all times.
  4. Exercise safely outside. Exerting high amounts of energy in the heat raises your body temperature, making you more at risk for heat exhaustion and stroke. Make sure to drink lots of water, wear breathable clothing and have healthy snacks to fuel your body.
  5. Take a vacation to prevent burnout. Reduced productivity, exhaustion and decreased engagement are all symptoms of burnout. Taking time away from your work responsibilities to get your mind and body in check is essential to keep up work performance and overall health.

Workers Compensation and COVID-19 Related Furlough Payments:

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The Massachusetts Division of Insurance recently approved a new classification that will exempt COVID 19 related furlough payments to employees from Workers Compensation payroll. This means that furlough payments will not count as payroll when used to determine Workers Compensation premium. There are some very specific qualifiers for this program:

  1. The insurance carrier needs to be notified immediately if you intend to request that furlough payments be exempt from Workers Compensation payroll. We can assist you with this process. This new rule was approved on July 17th and insurance carriers need to be notified within 60 days of that date.
  2. Employers must have records listing furloughed employees, their normal Workers Compensation classification, weekly wage, furlough date and anticipated return.
  3. Furlough payments made between March 1st and December 30th are eligible. The program expires as of December 31st 2020.

Many other states have adopted similar provisions to exempt furlough payments from Workers Compensation payroll. Please contact your representative immediately if you believe that your policy will qualify for this program.

Time For Spring Home Maintenance?

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Over winter houses are subjected to all types of bad weather and poor conditions during the cold dark months. There are many things that you as a homeowner might want to consider attending to once the warmer seasons come back around. Whilst there might be some tasks such as inspecting the roof or painting the exterior of your home, which could be done with possible assistance with tools potentially found on websites similar to platformsandladders.com/rolling-ladders/ or equipment that might be found in local handyman stores. Here is a list of places where you the homeowner can get started in preparing your house for the summer.

You may want to start with simple spring cleaning tasks:

  • Change and/or service your furnace filters, HVAC, smoke, and CO detector batteries. If needed, hire professionals providing services in HVAC Greensboro, or elsewhere, to give your appliances and systems, the professional check or maintenance they need. Perhaps, now is also a good time to see whether you need to get more heating oil ordered from somewhere like https://www.bondedoil.com/ after the winter months
  • Deep-clean your oven, dishwasher, coffee maker and outdoor grill, as well as drapes, upholstery, cabinets, floors, vents and baseboards
  • Clean your mudroom, garage and outbuildings, and, in the process, inventory items that need replacing
  • Look at any roofing or water related problems that you might have, and get it repaired by professionals similar to the professional Florida Southern Roofing services in Sarasota, FL (or wherever you might reside)

You can always fall back on the internet to provide you the right information in regards to this domain. Check out the Chubb Insurance brochures: How to Prepare your Home and Garden for Spring and Summer infographic or their Top 10 Spring Cleaning Tasks for more ideas and tips. Also, it’s important to remember there are common household cleaning products you should never mix, such as bleach and ammonia or bleach and rubbing alcohol. Learn more.

Then tackle more involved home maintenance inventory projects.

We can all use a little help keeping track of the home maintenance projects we need to do, and now there’s software and technology that can help.

With the HomeZada app, you can manage your home and projects, keep a digital inventory of your photos, receipts, and documents, create a home maintenance schedule program, and manage remodeling projects. HomeZada generally charges $60/year, but Chubb PRS clients are eligible for a rate of $45/year. Click here to get HomeZada now.

Stay safe in the process.

Cleary Insurance wants to make sure you and your family stay safe and healthy. Only handle projects yourself that you feel you’re truly qualified to do. You may be better off leaving projects with electrical components or those at heights, for example, to professionals who have the right equipment and skillset.

Simple Ways to Improve Your Health

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Get Active:

Did you know that exercising regularly could help you fight off chronic conditions and diseases? Exercise can help control your blood pressure, blood sugar and weight, raise your “good” cholesterol, and prevent diseases such as colorectal cancer, heart disease and Type 2 diabetes. If you’re ready to get active, keep the following tips in mind:
  • Get at least 150 minutes of moderate-intensity aerobic activity (e.g., briskly walking) or 75 minutes of vigorous-intensity aerobic activity (e.g., running) every week.
  • Incorporate muscle-strengthening exercises at least two days a week.
  • Avoid injuries by doing the following three steps each workout:
    • Warm up: Warming up allows your body time to adjust from rest to activity. Always remember to gradually increase the intensity of your warmup to reduce stress to your bones, muscles and heart.
    • Cool down: As with warming up, cooling down should include movements similar to those in your workout, but at a gradually decreasing level of intensity.
    • Stretch: After cooling down, stretching helps to build flexibility and range of motion. When stretching, remember to use gentle, fluid movements and to breathe normally.

    After an active and aggressive workout, however, it is equally necessary to take shower in order to feel fresh again. You can also elevate your bathing experience and the relaxation it gives by including CBD based bath salt or soap (click here to by some) in your shower routine.

Getting a Good Night’s Sleep

Getting enough sleep isn’t always possible, but inadequate sleep is a bigger problem than you may think. Getting an adequate amount of sleep is vital to staying healthy and avoiding fatigue, which is why those who often suffer from insomnia consider ingesting CBD capsules or pills (perhaps bought from Blessed CBD and its likes) to ease their mind and get a good night’s sleep. Remember that fatigue causes drowsiness, moodiness, loss of energy, inability to focus, and lack of motivation and alertness, which can, in turn, cause decreased productivity and even be a safety hazard. Hence, aim for seven to eight hours of sleep each night. Even if it means rearranging your schedule, make sleep a priority.
If you are struggling to fall asleep or have a delayed sleep wake disorder or something similar, try the following tips:
  • Maintain healthy habits, such as eating nutritiously, exercising regularly, managing your stress levels and not smoking-all of which will help you sleep better at night and give you more energy throughout the day.
  • Create and stick to a sleep routine. Go to bed and wake up around the same time each day, including on weekends. Make sure your bedroom is at a comfortable temperature and is quiet. Engage in a relaxing activity prior to bedtime such as listening to soft music or smoking cannabis (head to mmj express or like websites to find some premium strains).
  • Limit caffeine, alcohol, nicotine, large meals and rigorous exercise within a few hours of bedtime.

Eating 101

Eating a well-balanced diet is key to maintaining your health. In fact, improving your diet could help you live longer and reduce the chances of developing costly chronic diseases. Keep the following tips in mind when you’re getting started on your healthy eating journey:
  • Get a personalized eating plan. Speak with your doctor to develop a plan that will give you the amounts of each food group you need daily. Your doctor may recommend you seek out a registered dietician or nutritionist to create the best plan for you.
  • Set realistic goals. You are more likely to succeed in reaching realistic goals when you make changes gradually. Start with small changes.
  • Balance your plate with a variety of foods. Fifty percent of your plate should be filled with fruits and vegetables, 25 percent with lean meat, poultry or fish, and 25 percent with grains.
  • Eat slowly. It takes between 15-20 minutes for your brain to get the message that your body is getting food. When your brain gets this message, you may stop feeling hungry.
  • Practice portion control. A portion is the amount of food you choose to eat. Talk with your doctor or visit the United States Department of Agriculture’s website to learn more about proper portion sizes and daily food intake customized to your age, gender and activity level.
Please speak with your doctor if you have questions about fitness programs and/or healthy eating or how you can get started. If these tips do not help you sleep better, or you suspect you have a sleep disorder such as sleep apnea or insomnia, see your doctor.

Financial Moves to Consider During the COVID-19 Pandemic

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The COVID-19 outbreak has spurred an economic crisis as well as a health-related one. Millions of Americans are now unemployed, frightened, and wondering how they’ll pay their bills in the coming weeks or months. And while it’s a scary time to be living through, there are a few moves you can make to protect yourself financially.

  1. Boost Your Emergency Fund (if possible) – Having emergency savings is crucial at all times, but it’s especially important during periods like this, when unemployment is rampant and economic uncertainty abounds. A solid emergency fund is one with enough money to cover three to six months of essential living expenses, and right now, it certainly wouldn’t hurt to hit the higher end of that range. If you’re still working, use your paycheck to pad your savings — especially if you don’t have three months of expenses in the bank.
  2. Leave Your Stock Portfolio Alone – The stock market has been swinging lately, and while it may be tempting to cash out investments to avoid further losses, doing so will only lock in any losses you’re already looking at. Rather than go that route, remind yourself that if you sit back and ride things out, the stock market is likely to recover in time. That said, you don’t have to leave your stock portfolio alone if what you’re doing is buying more stocks. Now’s a great time to invest in quality companies whose stock is on sale, so if you’re good on the emergency savings front, you can use your spare cash to add to or diversify your portfolio.
  3. Keep Putting Money Away For Retirement – When the prospect of unemployment looms over you, you may not give a hoot about what your finances will look like 20, 30, or 40 years from now. But just as now’s a good time to add to your stock portfolio, so too is it a good time to keep funding your 401(k) or IRA, provided you’re financially able to do so. The money you invest in that account now can be used to score discounted investments that could grow exponentially over time.
  4. Apply For a Home Equity Line of Credit – Even if you’re still working today, you never know whether the ongoing crisis will force you out of a job. And if you’re already unemployed, it could take quite a long time to secure a paycheck again. As such, having access to extra money is crucial, so if you’re low on emergency savings but own a home, it could pay to apply for a home equity line of credit. That way, you’re not borrowing money you immediately accrue interest on, as would be the case with a home equity loan. Rather, you’re giving yourself the option to borrow as you need to.

A final thought: The most important thing to do now is take a deep breath and resist the urge to panic. Panic leads to irrational thinking, which leads to poor financial decisions.  The COVID-19 pandemic is a terrible and frightening situation. There’s uncertainty surrounding how long the outbreak will last, how bad it will get, and many other variables. But we will get through it. So make some smart and rational financial decisions and focus on what’s really important — your health and the health of the people you care about.

 

Works Cited
Backman, Maurie. “5 Smart Financial Moves to Make During the COVID-19 Outbreak.” The Motley Fool, 7 Apr. 2020, www.fool.com/retirement/2020/04/07/5-smart-financial-moves-to-make-during-the-covid-1.aspx. Accessed 7 May 2020.
“Coronavirus and Your Finances: Here’s How to React.” The Ascent, 13 Mar. 2020, www.fool.com/the-ascent/banks/articles/coronavirus-finances-how-to-react/.