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.

1. How to Read Your 1040
April 25, 2013
Charlottesville Senior Center
David John Marotta
www.MarottaOnMoney.com

2. The Ongoing Economic Malaise

6. Single or MFJ?

8. Hide

9. $4,000
$4,000
$4,000
$4,000
$4,000
$4,000
$24,000 State Tax Deduction

11. What is your Income?

12. [7] Wages, salaries, tips, etc.
+ [12] Business Income
+ [16a] Pensions and annuities
+ [20a] Social security benefits
INCOME=

13. Can you fund IRA?

14. 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

15. Contribution
Limit
$5,500
Catch-up
Provision
$6,500
Age 50+

16. $0

18. Investment Vehicles
Investment Vehicles

19. Withdrawals
Withdrawals
Traditional
IRA
Roth
IRA
Contributions
Contributions
Withdrawals
Nondeductible
IRAContributions
RMD

20. Money In
Investment
Income
Money Out
IRA
Roth
Taxable

23. 0% Capital Gains Tax

27. Don’t buy mutual funds in taxable
accounts late in the year
Buy
Buy
$

28. Buy
Sell
Tax Lot Optimization
Buy
Buy
Buy
Buy
Buy
Buy

29. MF
Buy
You
Buy
MF
Sell
Mutual Funds vs.
Exchange Traded Funds (ETFs)

30. RMD / Roth Conv.

32. Jan
Apr
Oct$$

33. “The Line”
Marginal Tax Rate
[40] Deductions

35. $5,700
Standard
Deduction
$5,700
Standard
Deduction
$5,700
Standard
Deduction
$5,700
Standard
Deduction
$4,000
Itemized
Deduction
$4,000
Itemized
Deduction
$4,000
Itemized
Deduction
$4,000
Itemized
Deduction
$8,000
Itemized
Deduction
$8,000
Itemized
Deduction

36. 30-year fixed home mortgage.
$250,000 capital exemption.

37. Tax Torpedo

40. Not part of your
Standard of Living

41. INCOME
- [60] Federal Taxes
- [A-5a] State Taxes
- Taxable Savings
- [A-19] Unusually High Charitable Giving
STANDARD OF LIVING (SOL) =

42. Gift Appreciated Stock

44. $3,000 / year

45. [43] – [9a] – [13]
Base taxable income =
[43] Taxable Income
- [9a] Qualified Dividends
- [13] Capital Gains.

48. Virginia Land Preservation Tax Credits
12% OFF!
10y carry forward
$0 next year min

49. How to Read Your 1040
April 25, 2013
Charlottesville Senior Center
David John Marotta
www.MarottaOnMoney.com

50. Comprehensive Wealth Management
with a Trusted Fiduciary Advisor