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Yahoo
5 days ago
- Business
- Yahoo
5 Things the Wealthy Should Do To Prepare for Trump's Income Tax Plan
President Trump's 'One Big Beautiful Bill,' recently signed into law, overhauls the federal tax code and reshapes how high earners manage wealth, investments, and estate planning. Read More: Discover Next: 'At the end of the day, this kind of overhaul doesn't just impact income,' said Kevin Knull, a certified financial planner and CEO of TaxStatus. 'It affects legacy, liquidity and charitable goals. High-net-worth families are going to want to take a look at their financial picture in totality and consider how each piece of their plan interacts in a more integrated way.' Here are five things the wealthy should do to prepare for Trump's income tax plan. Max Out Retirement Contributions and Consider Roth Conversions The law extends key provisions of the Tax Cuts and Jobs Act into 2025 and beyond, preserving favorable tax brackets for now. That makes it an opportune time for wealthy individuals to reassess Roth conversions while higher-rate brackets are still in play. 'Some strategies to consider would be Roth conversions of pre-tax qualified retirement assets, taking additional distributions from their IRAs, and harvesting capital gains from their portfolio,' said Matt Mancini, Wilmington Trust Wealth Planning Team Leader. He added, 'However, wealthy taxpayers will need to remain aware of their income, as some important deductions could potentially phase out for them if they have too much income,' he said. 'Tax projections with their accountants will be vital in planning.' Optimize Business Structures for Flexibility The 'One Big Beautiful Bill' left pass-through taxation intact and expanded the state and local tax SALT deduction for businesses, making entity structure relevant again. Business owners should review their S-Corp or limited liability company (LLC) classifications to take advantage of evolving federal and state tax regulations. 'If income taxes drop, it may make sense to take more compensation as salary now, and later shift toward capital gains, dividends, or equity-based pay if those become more favorable,' said Elina Linderman, founder of La Rusa Financial. 'Business owners should also re-evaluate how they pay themselves — W-2 wages versus distributions versus retained earnings.' Update Estate and Trust Plans The new law raised the individual estate tax exemption to $15 million under the 2025 policy, creating a limited opportunity for wealth transfers free of federal estate tax. Families should act now to restructure or gift accordingly before future adjustments reverse these benefits. 'These changes could have sweeping implications for estate and philanthropic strategies,' Knull said. 'If the estate tax exemption is reduced as expected after 2025, wealthy individuals might consider making larger lifetime gifts earlier.' He added that trust structures, such as intentionally defective grantor trusts (IDGTs) or generation-skipping trusts (GSTs), could still be viable but would need to be carefully tailored to the new law. Find Out: Manage Capital Gains and Investment Timing While income tax has been reduced for many Americans, high earners are still subject to income taxes, though at lower rates. Capital gains taxes remain in effect, making it critical for wealthy investors to review how and when they realize investment returns. 'For those subject to income tax, strategies that involve deferring income are not going to be nearly as interesting,' said Ari Greenman, partner at Lenox Advisors. 'Most strategies around qualified plans, like 401(k)s, aim to lower taxable income today, deferring taxes into the future, and then taking income when you remove the assets later on.' Consider the Bigger Picture From charitable planning to liquidity and legacy, this tax overhaul touches every part of a high-net-worth financial strategy. 'The key is scenario planning: families should work with advisors to model a few credible legislative paths and build adaptable frameworks, especially when it comes to timing asset sales, option exercises, or distributions,' said Jean-Baptiste Wautier, private equity CIO and World Economic Forum speaker. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Your State? Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on 5 Things the Wealthy Should Do To Prepare for Trump's Income Tax Plan Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
30-07-2025
- Business
- Business Wire
Tax Status, Inc. Launches Revolutionary TaxStatus LeadGen™ Platform, Transforming Financial Services Lead Generation with IRS-Verified Data
FRISCO, Texas--(BUSINESS WIRE)--Tax Status, Inc., a leader in tax data intelligence solutions, today announced the launch of TaxStatus LeadGen, a groundbreaking turnkey lead generation platform that delivers fully verified prospect data directly from IRS records. The platform enables financial services firms to receive pre-qualified leads with complete demographic information and comprehensive income, asset, and tax data in under five minutes, revolutionizing how wealth management firms identify and convert high-net-worth clients. "When an advisor receives a lead from our platform, they already know everything about the prospect – from contact info & family structure to income, assets, business interests, & tax situation – all verified directly from IRS data." - Kevin Knull, CEO Share Unlike traditional lead generation services that rely on self-reported data or publicly available data, TaxStatus LeadGen provides financial advisors with permission-based, comprehensive, IRS-verified prospect profiles including full demographics (name, spouse name, date of birth, address, email, phone), income sources, business ownership, investment accounts, real estate holdings, and tax standing. This unprecedented level of data accuracy and depth enables firms to focus their resources on genuinely qualified prospects while dramatically reducing the time spent in discovery meetings. "Financial advisors waste countless hours qualifying prospects based on incomplete or inaccurate information," said Kevin Knull, CEO of Tax Status, Inc. "TaxStatus LeadGen solves this fundamental problem by delivering leads that come with a complete prospect intelligence report. When an advisor receives a lead from our turnkey platform, they already know everything about the prospect – from their contact information and family structure to their income, assets, business interests, and tax situation – all verified directly from IRS data. Perhaps even more importantly, advisors can drastically shorten the discovery process so that they can render more complete advice to their clients sooner – which ultimately results in a better client experience and superior client outcomes." Key Platform Features: Enterprise-Ready: Designed for broker-dealers, RIAs, banks, lenders, and CPA firms who market through their existing channels Custom Messaging: Firms can determine their own messaging, branding, creative, and value proposition offered to the prospect at the beginning of the process Complete Prospect Profiles: Full demographics including name, spouse, DOB, address, email, and phone 60-Second Prospect Experience: Prospects complete a permission-based authentication process in under one minute on any device Comprehensive Financial Data: Each lead includes verified income, asset holdings, business ownership, tax rates, deductions, and multi-year financial and employment history Custom Call(s) to Action: Firms can decide what specific call(s) to action take place at the end of the process, including scheduling an appointment with a financial advisor Turnkey White-Label Platform with 7-Day Deployment: Full implement takes less than a week Transformative Results for Financial Services Firms: TaxStatus LeadGen reports remarkable improvements in their lead generation and conversion metrics: 10x improvement in lead quality compared to traditional sources 50% higher conversion rates due to pre-qualification with verified demographics 80% reduction of time spent qualifying prospects and completing client discovery process Complete contact information for immediate follow-up "The quality difference is staggering," said Nick Laird, CEO at VentureEd Solutions - a firm focused K-12 financial aid qualification. "We're not just getting names and phone numbers anymore – we're getting complete information with verified contact information and full profiles of people who have already given permission to share their data. It's completely changed how we do business." Turnkey Implementation Model: TaxStatus LeadGen is a turnkey solution that works in concert with an enterprise firm's marketing efforts and allows them to offer their unique value proposition to prospects. The enterprise is responsible for driving prospects to the platform through their existing omni-channel marketing and advertising initiatives, while Tax Status provides the entire technology infrastructure, IRS data integration, and prospect intelligence reporting. All data is available to the enterprise via API to enable integration with all existing enterprise technology platforms. The firm may choose any customer journey or call to action upon completion of the process, such as enabling the prospect to schedule a meeting with a financial advisor. This model allows firms to leverage their marketing strengths while gaining access to unprecedented data intelligence capabilities. Addressing Industry Compliance and Privacy: TaxStatus LeadGen™ operates with full regulatory compliance, utilizing secure, permission-based data access protocols. Prospects explicitly authorize the sharing of their IRS data and personal information with their chosen financial services provider, creating a transparent and compliant process that protects both firms and consumers. Tax Status is SOC 2 Type 2 compliant and all compliance documentation is available at Competitive Advantage: While other lead generation services rely on self-reported data, basic questionnaires, and 'scraped' public data, TaxStatus LeadGen is the only platform providing actual IRS-verified financial information along with complete demographic profiles. This unique turnkey capability positions financial services firms to: Contact prospects immediately with verified information Identify truly high-net-worth prospects with family details Uncover complex planning opportunities before first contact Personalize their approach with complete background Eliminate unqualified leads before investing resources A Comparison of Lead Quality: All leads are not equal, and Tax Status believes they have changed the lead landscape with this offering. A few data points: A typical lead for an advisory firm includes data that is self reported, with name, email, phone. Not a lot to build on—3 data points. A 'better lead', while still self-reported, also might include date of birth information, address, a self-reported income figure, and a self-reported estimate of net worth—5-7 data points, at most. A TaxStatus LeadGen lead includes that information—but instead of self-report, the data is IRS verified from all sources who report into the IRS. It includes everything: W-2s, 1099s, K-1s, dividends, and capital gains. The Net Worth figure is calculated from actual assets and liabilities—meaning it includes all accounts at all custodians with type and financial activity. It includes business ownership (every entity, with exact ownership percentages and lenders); it includes all properties with mortgage balances, and the lenders included; it includes up to ten years of verified history and tax rates, deductions, carry forwards, and compliance. It's over 3000 data points of verified information. Availability and Pricing: TaxStatus LeadGen is immediately available for enterprise deployment as a turnkey solution. Pricing is customized based on volume and specific implementation requirements. Interested firms can schedule a demonstration and receive a sample verified Prospect Intelligence Reports by contacting Tax Status, Inc. About Tax Status, Inc.: Tax Status, Inc. is a fintech company specializing in tax data intelligence and verification solutions. Founded with the mission of making tax and financial data more accessible and actionable, the company serves financial institutions, wealth management firms, and enterprises seeking to leverage IRS-verified data to help render better advice to their clients. Tax Status, Inc. is committed to maintaining the highest standards of data security, privacy, and regulatory compliance while providing turnkey solutions that integrate seamlessly with existing business processes. For more information about TaxStatus LeadGen or to schedule a demonstration, email hello@
Yahoo
12-04-2025
- Business
- Yahoo
Tax Day Countdown: 4 Reasons Retirees Should Use Accountants for Their Taxes in 2025
There is no shortage of tax filing software available for a pretty decent price (at least when compared to the price of hiring an accountant, for an average of $37 per hour, depending on location). Though this software generally gets the job done, it's likely to do so in a bare minimum way — and costly errors can occur. Discover More: Read Next: Everyone filing their taxes should consider enlisting the help of a living, breathing certified public accountant (CPA), but retirees should be even more keen on getting human-expert help. Why? Financial experts discussed the four reasons retirees should use accountants in 2025. Tax laws are always changing, and retirees need to stay in the loop. If you don't understand these laws, you could accidentally break one. 'Retirees might spend the extra money on a CPA to ensure they fully understand the tax laws around withdrawing from retirement accounts and the potential implications,' said Joe DiSanto, a financial advisor, fractional chief financial officer (CFO) and founder of Play Louder. 'This includes managing Social Security in combination with other withdrawals, understanding combined income limits, tax brackets and optimizing withdrawals from retirement accounts or taxable brokerage accounts for living expenses.' Find Out: Accountants can help retirees stay safe from bad actors looking to scam you via your tax filings. 'CPAs have access to technology-driven solutions that integrate directly with the IRS to monitor a retiree's account activity in real time,' said Kevin Knull, certified financial planner (CFP) and president at TaxStatus. 'With this active monitoring, the advisor can promptly identify suspicious behavior and address potential threats before they escalate into serious issues.' Mistakes are never made on purpose (that would defy the definition of 'mistake'), but the IRS doesn't care. It'll penalize you for an error, however innocent it is. An accountant has the intellect and know-how to help you avoid messing up important information. 'CPAs play a crucial role in helping retirees avoid costly mistakes in filing taxes, and in finding additional financial and tax planning opportunities,' Knull said. 'CPAs are equipped to avoid errors in tax planning that can lead to unexpected tax liabilities, penalties and audit risks. 'Examples of tax planning mistakes from a lack of data include: missed tax deductions and credits; overlooking unreported income; failure to adjust for tax liabilities on past earnings; incorrect Roth conversion recommendations; non-compliance with IRS reporting requirements and delayed filing deadlines due to missing information.' Think of hiring an accountant as an investment if only because they can help you lower your tax liability and claim money-saving deductions. 'Accountants play a critical role in ensuring retirees take full advantage of all tax deductions, credits and strategies to minimize taxable income,' said Melissa Murphy Pavone, founder at Mindful Financial Partners. We've highlighted the four reasons retirees should use accountants, but what if money is really tight? If that's the case, you might be able to safely skip this expense. Emphasis on the word 'might.' It depends on how complicated your finances are — and how much money you're reeling in. 'The complexity of a retiree's financial situation often determines whether they need a CPA,' DiSanto said. 'If someone's pretax retirement income is in the range of $4,000 to $5,000 per month, their tax liability might be minimal, and their situation might not be overly complicated. 'However, for retirees with higher income — say $100,000, $200,000 or $300,000 per year from sources like IRAs, 401(k)s, Roth accounts, life insurance, Social Security or taxable brokerage accounts — it might make sense to seek professional advice,' DiSanto said. 'A CPA can help navigate capital gains, dividends and other considerations to maximize efficiency.' If you do go the route of hiring a CPA, it's crucial to verify their credentials before commencing work. 'If you're going to pay someone, I'd recommend at least an enrolled agent who can represent you in case of an audit,' DiSanto said. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 4 Things You Should Do if You Want To Retire Early 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on Tax Day Countdown: 4 Reasons Retirees Should Use Accountants for Their Taxes in 2025 Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
6 Benefits To Filing Taxes Early for Retirees
Filing taxes isn't most people's idea of fun, but it's usually better to file early. After all, filing late can lead to some hefty penalties. The failure-to-file penalty is 5% of the taxes owed per month the payment is late (25% maximum). The failure-to-pay penalty is up to 25% of the unpaid taxes. Read More: Find Out: 3 Sneaky Things You Didn't Realize Your Tax Software Was Doing — And How to Stop Them This Year Even retirees should still file a tax return since many types of income are taxable at the federal — and in some cases — state level. And while it's possible to request an extension, as the IRS predicts 19 million taxpayers will do this year, it's generally best to get it out of the way. If you need further convincing, here are the top benefits of filing taxes early as a retiree. Anyone can be the target of fraud or identity theft, with many bad actors specifically going after retirees. Unfortunately, this may become even more prevalent of an issue going forward due in no small part to the National Public Data breach that occurred in 2024. 'In the summer of 2024, the National Public Data (NPD) breach exposed 272 million taxpayer identification numbers (TINs) and 2.9 billion records, including Social Security numbers. It was one of the largest data breaches in history,' said Kevin Knull, CFP and president at TaxStatus. Discover Next: 'One of the most severe consequences of identity theft in the aftermath of the NPD breach is the increased probability of fraudulent tax returns,' Knull continued. 'Criminals can use stolen TINs to file fake and fraudulent returns, often claiming large refunds long before the legitimate taxpayer files and is aware of an issue.' Filing early can help protect you in the face of tax-related fraud and identity theft. 'With this level of threat, the earlier a legitimate return is filed, the less opportunity there is for criminals to submit a fraudulent one in its place,' said Knull. 'It has never been more vital for taxpayers to file taxes as early as possible this year.' Waiting to file also means having to deal with plenty of people with the same idea. If you want to avoid the tax rush, and the headache that often entails, file early. 'One of the things I would say about filing taxes earlier is avoiding the madness of the tax rush,' said John Adams, CPA and fractional CFO expert at Bridgewater Tax and Financial Consulting. 'It is easier for a paid preparer to focus on your taxes earlier in the tax season rather than the rush.' Simply put, filing early gives you more time to figure out what might be missing from your tax return. 'Filing early gives you more time to identify and collect any missing information needed to file your return,' said Mark Luscombe, principal analyst for Wolters Kluwer's Tax and Accounting Division North America. It also gives you the chance to figure out how you're going to pay the taxes you owe, if any. 'Preparing your tax return early gives you more time to calculate the taxes that you owe and to make sure you have the funds available to pay any remaining tax due with the tax return,' said Luscombe. Whether you're living on a fixed income as a retiree, or you have a complicated portfolio, having more time is rarely a bad thing. According to the IRS, the average refund amount is $3,138. But setting the amount itself aside, filing early could mean getting that refund sooner than expected. For retirees who rely on this refund as a part of their regular income, this can be huge. 'If you file your taxes earlier, you are likely to get your refund earlier,' said Jay Zigmont, PhD, CFP and founder of Childfree Wealth. 'Refunds are generally processed in the order received. As we get closer to April 15th, there ends up being a backlog, and refund times tend to lengthen.' Handling your financials in retirement can be complicated. Once you reach a certain age (typically 73 years old), you must also start taking the required minimum distributions from your accounts. Accounts subject to RMDs include traditional IRAs, SIMPLE IRAs, and SEP accounts. 'If you are in the first year of having to make a Required Minimum Distribution, [filing early] will give you more time to plan which accounts to take the money out of and when,' said Adams. When you retire, the last thing you need is more stress of hassle. Filing your taxes early gets them off your plate so you can focus on other things that matter to you. 'Many people, including myself, file their taxes early just to get them out of the way,' said Zigmont. 'No one likes doing their taxes, so why wait and have to worry about it for a longer time?' More From GOBankingRates 4 Low-Risk Ways To Build Your Savings in 2025 3 Things You Must Do When Your Savings Reach $50,000 This article originally appeared on 6 Benefits To Filing Taxes Early for Retirees Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
6 Benefits To Filing Taxes Early for Retirees
Filing taxes isn't most people's idea of fun, but it's usually better to file early. After all, filing late can lead to some hefty penalties. The failure-to-file penalty is 5% of the taxes owed per month the payment is late (25% maximum). The failure-to-pay penalty is up to 25% of the unpaid taxes. Read More: Find Out: 3 Sneaky Things You Didn't Realize Your Tax Software Was Doing — And How to Stop Them This Year Even retirees should still file a tax return since many types of income are taxable at the federal — and in some cases — state level. And while it's possible to request an extension, as the IRS predicts 19 million taxpayers will do this year, it's generally best to get it out of the way. If you need further convincing, here are the top benefits of filing taxes early as a retiree. Anyone can be the target of fraud or identity theft, with many bad actors specifically going after retirees. Unfortunately, this may become even more prevalent of an issue going forward due in no small part to the National Public Data breach that occurred in 2024. 'In the summer of 2024, the National Public Data (NPD) breach exposed 272 million taxpayer identification numbers (TINs) and 2.9 billion records, including Social Security numbers. It was one of the largest data breaches in history,' said Kevin Knull, CFP and president at TaxStatus. Discover Next: 'One of the most severe consequences of identity theft in the aftermath of the NPD breach is the increased probability of fraudulent tax returns,' Knull continued. 'Criminals can use stolen TINs to file fake and fraudulent returns, often claiming large refunds long before the legitimate taxpayer files and is aware of an issue.' Filing early can help protect you in the face of tax-related fraud and identity theft. 'With this level of threat, the earlier a legitimate return is filed, the less opportunity there is for criminals to submit a fraudulent one in its place,' said Knull. 'It has never been more vital for taxpayers to file taxes as early as possible this year.' Waiting to file also means having to deal with plenty of people with the same idea. If you want to avoid the tax rush, and the headache that often entails, file early. 'One of the things I would say about filing taxes earlier is avoiding the madness of the tax rush,' said John Adams, CPA and fractional CFO expert at Bridgewater Tax and Financial Consulting. 'It is easier for a paid preparer to focus on your taxes earlier in the tax season rather than the rush.' Simply put, filing early gives you more time to figure out what might be missing from your tax return. 'Filing early gives you more time to identify and collect any missing information needed to file your return,' said Mark Luscombe, principal analyst for Wolters Kluwer's Tax and Accounting Division North America. It also gives you the chance to figure out how you're going to pay the taxes you owe, if any. 'Preparing your tax return early gives you more time to calculate the taxes that you owe and to make sure you have the funds available to pay any remaining tax due with the tax return,' said Luscombe. Whether you're living on a fixed income as a retiree, or you have a complicated portfolio, having more time is rarely a bad thing. According to the IRS, the average refund amount is $3,138. But setting the amount itself aside, filing early could mean getting that refund sooner than expected. For retirees who rely on this refund as a part of their regular income, this can be huge. 'If you file your taxes earlier, you are likely to get your refund earlier,' said Jay Zigmont, PhD, CFP and founder of Childfree Wealth. 'Refunds are generally processed in the order received. As we get closer to April 15th, there ends up being a backlog, and refund times tend to lengthen.' Handling your financials in retirement can be complicated. Once you reach a certain age (typically 73 years old), you must also start taking the required minimum distributions from your accounts. Accounts subject to RMDs include traditional IRAs, SIMPLE IRAs, and SEP accounts. 'If you are in the first year of having to make a Required Minimum Distribution, [filing early] will give you more time to plan which accounts to take the money out of and when,' said Adams. When you retire, the last thing you need is more stress of hassle. Filing your taxes early gets them off your plate so you can focus on other things that matter to you. 'Many people, including myself, file their taxes early just to get them out of the way,' said Zigmont. 'No one likes doing their taxes, so why wait and have to worry about it for a longer time?' More From GOBankingRates 4 Low-Risk Ways To Build Your Savings in 2025 3 Things You Must Do When Your Savings Reach $50,000 This article originally appeared on 6 Benefits To Filing Taxes Early for Retirees
