How to Read Your (IRS Form 1040) Tax Return -April 2013

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Here's why you shouldn't just fill out your taxes in the spring and then forget about them. There are valuable things to learn from your taxes.

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  • Don’t forget the “Back door” approach to Roth
  • How to Read Your (IRS Form 1040) Tax Return -April 2013

    1. 1. How to Read Your 1040April 25, 2013Charlottesville Senior CenterDavid John Marottawww.MarottaOnMoney.com
    2. 2. The Ongoing Economic Malaise
    3. 3. Single or MFJ?
    4. 4. Hide
    5. 5. $4,000$4,000$4,000$4,000$4,000$4,000$24,000 State Tax Deduction
    6. 6. What is your Income?
    7. 7. [7] Wages, salaries, tips, etc.+ [12] Business Income+ [16a] Pensions and annuities+ [20a] Social security benefitsINCOME=
    8. 8. Can you fund IRA?
    9. 9. ROTH IRA Phaseouts:•$178,000-$188,000 (MFJ)•$112,000-$127,000 (Single)Traditional IRA Phaseouts:•$95,000-$115,000 (MFJ)•$59,000-$69,000 (Single)Backdoor Roth
    10. 10. ContributionLimit$5,500Catch-upProvision$6,500Age 50+
    11. 11. $0
    12. 12. Investment VehiclesInvestment Vehicles
    13. 13. WithdrawalsWithdrawalsTraditionalIRARothIRAContributionsContributionsWithdrawalsNondeductibleIRAContributionsRMD
    14. 14. Money InInvestmentIncomeMoney OutIRARothTaxable
    15. 15. 0% Capital Gains Tax
    16. 16. Don’t buy mutual funds in taxableaccounts late in the yearBuyBuy$
    17. 17. BuySellTax Lot OptimizationBuyBuyBuyBuyBuyBuy
    18. 18. MFBuyYouBuyMFSellMutual Funds vs.Exchange Traded Funds (ETFs)
    19. 19. RMD / Roth Conv.
    20. 20. JanAprOct$$
    21. 21. “The Line”Marginal Tax Rate[40] Deductions
    22. 22. $5,700StandardDeduction$5,700StandardDeduction$5,700StandardDeduction$5,700StandardDeduction$4,000ItemizedDeduction$4,000ItemizedDeduction$4,000ItemizedDeduction$4,000ItemizedDeduction$8,000ItemizedDeduction$8,000ItemizedDeduction
    23. 23. 30-year fixed home mortgage.$250,000 capital exemption.
    24. 24. Tax Torpedo
    25. 25. Not part of yourStandard of Living
    26. 26. INCOME- [60] Federal Taxes- [A-5a] State Taxes- Taxable Savings- [A-19] Unusually High Charitable GivingSTANDARD OF LIVING (SOL) =
    27. 27. Gift Appreciated Stock
    28. 28. $3,000 / year
    29. 29. [43] – [9a] – [13]Base taxable income =[43] Taxable Income- [9a] Qualified Dividends- [13] Capital Gains.
    30. 30. Virginia Land Preservation Tax Credits12% OFF!10y carry forward$0 next year min
    31. 31. How to Read Your 1040April 25, 2013Charlottesville Senior CenterDavid John Marottawww.MarottaOnMoney.com
    32. 32. Comprehensive Wealth Managementwith a Trusted Fiduciary Advisor

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