Real Intelligence (RI) & Wealth Building

Posted on by TheWealthIncreaser.com

Improving Your Finances in an Intelligent, Consistent & Proactive Manner

Learn how you can use “real intelligence and not “artificial intelligence” to build wealth more efficiently…

 

Although AI (Artificial Intelligence) is a great time saver and can enhance your results in many endeavors, AI cannot substitute from you applying yourself and using your own intelligence (RI) to achieve more.

 

In this discussion TheWealthIncreaser.com will discuss the importance of intelligently pursuing your wealth building efforts with what you “have within” so that you can reach the goals that you desire, avoid a financial quagmire, and pursue goals that are higher and not remain where you are–or worst yet reach goals that are dire.

 

And with hummingbirds and cardinals entering my personal space on this day, the creator of TheWealthIncreaser.com saw that as a sign to help you come up with a real way that you can more intelligently pursue your goals–starting today!

 

1) Financial uncertainty by many is understandable in the current environment

At this time the atmosphere around the world and particularly in the United States is at a level unseen by many during their lifetime, and for most the atmosphere does not exude positivity.

 

With tariffs, tax and spending bills that take away from the least who are in need and moves advantages to millionaires and billionaires, the atmosphere is depressing for many.

 

Despite what is occurring, it is important that you recognize and realize what is outside of your control and what you control so that you can take steps to at a minimum improve your situation at this time and in the coming years–particularly with the uncertainty that is now in the environment.

 

2) Lack of action by you and others at this or any time is not acceptable if you desire more

The steps that you can take may not be visible to you at this time, however if you take action and sincerely want to learn and apply steps that can lead to you controlling your outcomes as oppose to having your outcomes directed by AI and other disadvantageous means–the solution for you is to take proactive action and control your own life proactively—not reactively–now that is Real Intelligence!

 

However, AI has its purposes as it can assist you on many tasks and assignments that you may have on a daily basis.  Whether ChatGPT, Grok, Copilot, Deepseek, Grammarly, Gemini, DeepL or any others, you want to know the advantages and disadvantages while using as they all have limitations.  For those who are business owners, AI has the potential to run all areas of your company, can help schedule your day, pull up demographic data in your area, and can craft a personality profile that caters to your type of business–among other abilities!  AI combined with RI can greatly enhance your life and possibly give you a competitive advantage when used appropriately.

 

It is important that you realize that adversity or unwanted happenings will occur throughout your life and at varying degrees–and in many cases on multiple fronts, therefore you want to equip your mind with all that you can to better manage the adversity that you will undoubtedly face so that you can still achieve–even if you have to re-strategize along the way to achieve your goals.

 

3) You possess the ability to transform your current situation into that of lasting success

By possessing in your mind what you have learned in this post, you are now in position to grow and pursue other areas of wealth building that you need to know.  You want to be aware of what you need to do to more efficiently make your dreams come true–and although AI has many benefits, it is Real Intelligence that will better direct you toward making your dreams come true.

 

That is not to say that artificial intelligence (AI) should play no role, however you want to use AI and other tools effectively–therefore, you must be aware of the limitations of technology, as real success begins and ends inside of you!  Your awareness of the need to pursue your goals more aggressively at this time can help you transform your finances and do what you desire at the various stages of your life.  However, it is important that you do so at your highest level as you possess in your heart and mind the knowledge (or will soon possess) that is necessary to do just that!

 

Conclusion

Your ability to believe in, educate, and use your own mind throughout your lifetime for the benefit of yourself and your family can lead to you not only pursuing more, but also achieving more–in large part because you made the commitment to open a new door.

 

Although we are currently in an economy of uncertainty, you can use Real Intelligence to move forward with more confidence and optimism in spite of the current economy or any economy.  The AI revolution, robots, humanoids, driverless vehicles, drone technology, tariffs and the state of leadership worldwide, and particularly in the United States, all signal an uncertain future when looked at objectively.  However, it is up to you to turn what appears to be a turbulent economy for an uncertain period into a successful period for you and your family.

 

You must open your own door if you sincerely desire to soar and using Real Intelligence that you possess in your heart and mind, can put you on a path to achieving the type of success that is one of a kind and prior to you making a “real commitment” in your life, may have been hard to find.

 

Now is the time that you let joy in, have appreciation for being here, and show gratitude for what you have done and will do so that your heart and mind is at peace, because you control not only AI, but also RI!

 

That real intelligence includes analyzing your finances in 3 steps (or other ways that you may find effective) and making improvements as best you can on a continuous basis.  Keep in mind that still requires planning for the long-term, if you are now in position to do so!  It also means having backup plan(s) and the ability to pivot, when necessary, based on economic conditions.

 

Although chaos, confusion and lack of action by many is currently flowing in the atmosphere and have some in a state of anxiety, you want to operate internally with confidence and not act from a position of weakness–as you must move to action as if you are running in the Preakness (at a pace that is disciplined and uniquely your own).

 

Although Artificial Intelligence can play a major role in human advancement and possibly make many of your daily tasks less taxing, you want to know in definite terms that the Real Intelligence that you possess is far superior, and even in times of uncertainty you can live simply (with less stress) by knowing in clear terms what you need to do and will do, so that you can laugh more, love more and sincerely open a new door!

 

At the same time, you don’t want to be afraid of AI as it has numerous roles, therefore you can use AI to perform many tasks for you throughout your lifetime.  Even when it comes to building wealth, AI can help you evaluate potential investment returns in say, a target date fund, index fund, ETF fund and other mutual funds and recommend the best pick–for starters.

 

However, the key is to control AI and not let AI control you by asking the right question(s) and seeking the right answers (in all facets of your life)!  By doing so you are showing Real Intelligence and the success that you desire will be out in front of you and will be yours to GRAB!  You also want to be aware of those who use AI against you to your detriment–as that can prevent you from making your dreams come true.

 

Always realize and be cognizant that AI is only as good as the input that is utilized–therefore always keep that in mind as there can be bias and incorrect data outputs when that occurs!

 

All the best to your real success, as you deserve “nothing that is artificial” as you build wealth, due in large part because you are “willing to apply” your Real Intelligence and give it your absolute best while others rest…

 

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Output & Wealth Building

Posted on by TheWealthIncreaser.com

Learn how you can increase your output as you build wealth and improve your financial health…

 

New Book:  Taxing Subject Matters Made Easy — A beginner’s guide to effective tax management now available on amazon.com—includes Big Beautiful Bill updates…

 

CAUTION: 8-minute read

 

In the current economy many feel drained by all that is happening, and many are apprehensive and/or uncertain about their future and how they can achieve more.  And with the topic of taxes being discussed in detail over the past few months on TheWealthIncreaser.com, many are looking forward to a new topic that can enhance their wealth building efficiency, and it is the desire of the creator of TheWealthIncreaser.com that this post fits the bill!

 

In this discussion TheWealthIncreaser.com will discuss ways that you can “increase your output” and achieve more during the current and future economic environments so that you can enjoy life on your terms.

 

This discussion has special meaning as the creator of TheWealthIncreaser.com’s first biological granddaughter turns 1 on this day (happy birthday with all the love possible), therefore, it is imperative to show you a better way so that the results that you desire will come into play!

 

As we all age here on planet earth the need for increased growth, and particularly financial growth for young investors is sorely needed at this time and this discussion will hopefully spark something on the inside of you to make you more aggressively pursue what you need to do regardless of your age–so that you can really make your dreams come true!  However, output for all, at this time is what is inspiring the creator of TheWealthIncreaser.com on this day, and this post is designed to get you to approach your finances in a better way!  Furthermore an “increase in output” is what is needed by many at this time based on the state of the economy in many areas; therefore, it is the topic of this discussion and hopefully will inspire and lead you and others toward achieving more throughout your lifetime!

 

It is important that you realize at the earliest time possible that you possess the ability to direct your future and achieve the outcomes that you desire, if you are willing to put forth the needed effort and reach higher!

 

In the paragraphs below you will learn 3 steps that you can take right now that can put you on a path to increasing your output and achieving more at the various stages of your life.

 

  1.  In order to increase your output financially and build wealth more efficiently you must first determine where you are now at, and where you desire to go!

Your first step to achieving more and increasing your financial score is to do an analysis of your cash flow on a monthly and/or annual basis.  By determining whether you have a monthly or annual surplus or deficit, you will know what you can potentially do to achieve more.  Furthermore, you want to know what your assets and liabilities are so that you can determine your net worth and make plans for improving and increasing your net worth!

 

2.  In order to increase your output, you must obtain “effective knowledge of your credit” so that you can achieve the goals that you desire throughout your lifetime.  By doing so you can gain mastery of your credit so that you can make credit work for you as opposed to against you!

 

Your desire to understand and master the 5 credit factors can play an important role in your credit and financial management–and if you make a serious commitment at this time, you can put yourself in position to manage your credit effectively for the rest of your life, and eventually with less effort once you master what you need to know.

 

3.  In order to increase your output you must manage your finances effectively and have the determination to achieve more!  You must know what your finances consist of, and have a desire to improve upon and manage your finances in a wholesome manner so that you can achieve more!

 

Your desire to increase your output throughout your lifetime should provide you the motivation to learn and know that you must more effectively manage your insurance, investments, taxes, emergency fund, education planning, estate planning/wills and retirement planning in a way and manner that serves your and your family’s best interest–not creditors or others who have no real concern for your financial future or outcomes that favor you and your family.

 

Conclusion

You must realize that you have the ability, capability, agility and capacity to do much more not only at this time, but at all times.  Even when you face adversity, whether that adversity is brought to you or you find yourself in a position where you don’t know what to do because you were the cause–you can still take the right actions that can increase your output and allow you to achieve your goals–after you take a short pause.

 

As you take steps to increase your output, you want to be awake so that you can take the right steps and make what you want to see occur–happen, as your goal is not to make a mistake.  Isn’t it time that you partake in your path to your own success for your own sake, and not achieve fleeting success that is fake?

 

Always realize that to increase your output you must operate with confidence and have clarity, or a clear vision of the success that you will soon achieve—or another way of looking at it–you must sincerely believe!

 

You also want to operate from this day forward with a high level of character and not do like those who operate in a “less than desirable manner” as they make a living and move along throughout their life!

 

Furthermore, your goal should be to live with joy at your center, have a real appreciation for your life, and have gratitude for what you have done and will do as you must change your attitude in order to reach your highest altitude!

 

You are now equipped to do far more than you are currently doing on a daily basis, and it is the desire of TheWealthIncreaser.com, that you hit a grand slam as you round the bases and learn more about personal  finance in new spaces.

 

It is the desire of TheWealthIncreaser.com that this discussion has given you meaningful direction so that you can increase your output and achieve more throughout your lifetime.

 

All the best as you avoid a financial mess, journey toward success, increase your output and achieve at a level that is your absolute best…

 

Learn more about books authored by the creator of TheWealthIncreaser.com that can further help you increase your output…

 

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Taxing Subject Matters Made Easy

Posted on by TheWealthIncreaser.com

Learn how you can use the tax system to achieve more if you now reside in the United States….

CAUTION: 10-minute read

In the current economy many have major concerns about their finances and “Taxing Subject Matters Made Easy” is a timely book that is designed to give taxpayers in the U. S. a powerful edge as they manage their finances and file income taxes on an annual basis.

 

Although many are apprehensive when it comes to their taxes, and particularly “income taxes” at the federal and state level, it is important that you gain a “conceptual overview” of taxation so that you can make the system work better for you.  In this post you will learn how you can use the latest book in the real estate and finance 360 degrees series of books to achieve more throughout your lifetime.

 

It is important that you have a basic understanding of taxation and an awareness of the history of taxation in the United States, as that will serve as a base point for you to comprehend other areas of taxation and achieve more throughout your lifetime!

 

Whether you are new to filing income taxes or you have been filing your taxes with the IRS for years, “Taxing Subject Matters Made Easy” is designed to enhance and improve upon your tax knowledge that you now have so that you can achieve much more during your lifetime.  It is imperative that you “look inside” and determine for yourself how you can utilize this empowering book to achieve more on a more consistent basis.

 

Taxing Subject Matters Made Easy is a book that “takes approximately 8 hours to read” and consists of 382 pages (includes Big Beautiful Bill updates of 2025 in Afterword), and more importantly is created for those who desire lasting success and effective management of their taxes throughout their lifetime in a way that allows them to give it their absolute best as they pursue major success.

 

It is a book designed to inspire, uplift, and show you the way to success in a simplified, yet comprehensive way–and will jumpstart your path to comprehensive wealth building success, if you are sincere about your future on this day!

 

In chapter 1 you will learn the importance of having a basic understanding of taxes, including knowing the importance from a “mindset point of view” why you must have a basic understanding of taxes and taxation of various sources of income, along with understanding the history of taxation in the U. S. so that your conceptualization of taxation is enhanced.

 

In chapter 2 you will learn about W-4 and other employee withholdings and how you can maximize your tax position through the withholding process.

 

As the new year and tax season comes in annually, many have questions or concerns about their federal (and state) tax withholdings by their employer, and they want to know how they can more effectively manage those and other withholdings.  You will learn in detail how “withholdings on income” earned in the United States occur, so that you or those whom you know can utilize the system to achieve more.

 

In chapter 3 you will learn how you can achieve more and build wealth more efficiently by gaining a better understanding of tax brackets so you can determine where you fall on the tax scale both marginally–and effectively.

 

In the United States and its territories, many taxpayers who are required to file a federal (and/or state) tax return often find understanding of the system to be difficult, confusing, and hard to understand.  However, the system is not as complicated as many think for most taxpayers, and if you file taxes in the U. S., you want to put yourself in a more favorable position for success so that you can achieve at a higher level of excellence throughout your lifetime! 

 

In chapter 4 you will learn about the various tax filing options so that you can build wealth more efficiently.

 

Over the years, many have posed questions and concerns about their income tax filing status and who qualifies as a dependent.  You will have the opportunity to clear up some of the misunderstandings that you and others may have as it relates to “filing status and claiming” of dependents.

 

Even though filing and dependent statuses can get highly technical for some, it is fairly straight-forward for most–and if highly technical applies to you–do you know what you need to do?

 

Additionally, you want to know about “common audit triggers” on the front end so that you can avoid them and not have to consult tax or other professionals after the fact–because at that time–the IRS is on the attack!

 

In chapter 5 you will learn about some of the latest tax news so that you can avoid the tax blues.  You will learn a “number of critical areas of tax understanding” that could help you maximize your tax position from this day forward.

 

In this chapter you will learn about payment options that are available if you currently owe the IRS, along with powers the IRS have at their disposal if you fail to pay or make arrangements to pay.

 

Furthermore, you will learn about many common tax concerns that a vast number of “tax filers” have had over the years so that you won’t make the mistakes that many tax filers have made over the years.  It is important that you approach your taxes with a “secure mindset” and you don’t let the “5 — I’s” prevent you from achieving more tax-wise and financially during your various life stages.

 

In chapter 6 you will learn more about capital gains and how they are taxed so that you can efficiently build wealth.  Even with all that is happening with tariffs and uncertainty on the world stage, there are some bright spots when it comes to paying taxes in the United States.  Many assets that you own may be eligible to be taxed at the more favorable capital gains rate and you want to know what they are and how you fall tax-wise when it comes to capital gains taxation based on your taxable income.

 

Many assets that you inherit or could potentially inherit, may be eligible for “stepped-up basis” treatment and you want to know this upfront so that you can better plan for your loved ones after you transition and help your loved ones who transition before you, better plan for the transfer of their assets as well.

 

Although there is much that is “simple and uneventful” in the tax code, there are also more complex topics that could be more challenging for you when it comes to using the tax code to your benefit and you want to be aware of them proactively as opposed to re-actively–and knowing upfront how you can use the knowledge gained to achieve more during the time that you are on earth–could lead to you opening a new door that could lead you to increasing your net worth! 

 

In particular, if you own real estate or anticipate owning, you want to know the taxation of that real estate under varying scenarios and in this chapter you will learn the tax implications of selling your personal residence, rental property, vacation property, property destroyed by fire or other disasters, property sold as a short sale or lost through foreclosure, and the effect that depreciation may have on property that you sell.

 

In chapter 7 you will learn about adjustments, credits and deductions that you can possibly benefit from throughout your lifetime.  Even though you may be unable to use the large array of loopholes in the tax code that many millionaires and billionaires take advantage of, there are ways that you can benefit even if you have modest income.

 

You will learn ways that you can possibly use adjustments, credits and deductions that can be of real benefit to yourself and your family so that you can build wealth more efficiently and achieve meaningful goals.  You additionally want to know up front that there are exclusions, exceptions and exemptions available in the tax code that you can possibly benefit from at tax time that you can use for your and your family’s benefit during the tax year and even after you transition!

 

In chapter 8 you will learn how you can benefit from the use of compounding and understanding the various types of income that you may now be unaware of.  Over the past several years there has been an increase in the number of questions regarding the topic of compounding, and in this chapter, exactly what compounding is and how you can use the effects of compounding in your life to achieve the goals that will serve your and your family’s best long-term interests will be discussed in depth.

 

Additionally, you will learn about the “various types of income” that you may hear or read about as you build wealth.  You want to know the importance of understanding the various types of income as that understanding is an important skill to have in the time period that is now upon us all.

 

In chapter 9 you will learn how you can save on your personal taxes by using the tax code and strategic maneuvering to lower your taxes that you pay to the IRS and other taxing authorities.  You want to pay the least amount of taxes possible as long as you can do so legally and this chapter will show you numerous ways that you can strategize to reduce your tax burden.

 

In this chapter you will additionally learn about mortgage related tax breaks, tax shelters such as utilizing rental property, business losses, tax efficient investing and ways to analyze your homeowner escrow account and the broader economy so that you can make better informed moves.

 

In the current economy it is important that you use the personal income tax laws to your best advantage.  Whether you are inside the tax season or outside of the tax season, you want to realize that tax planning is a year-round process.  In this final chapter, tax breaks and strategies will be presented in a simplified manner, so that you can position yourself for more success throughout your lifetime.

 

By doing so you can position your finances so that you can do what “you” desire during your retirement or other time frame in your life where you decide to scale back more or live within your means.

 

In Appendix A and B you will learn about more books created by the author, along with a “3 Step” comprehensive financial management system that you can utilize throughout your lifetime to achieve more.

 

Finally in the BONUS SECTION you will learn how you can invest for the long-term in a simplified manner so that you can achieve your long-term goals efficiently.

 

Finally, in the Afterword you will learn about many of the updates in the tax code as a result of the BBB that was signed on July 4th, so that you can plan better for the 2025 tax year and beyond.

 

Conclusion

E-book available for only $9.95...

It is important that you contemplate your taxes at a higher level of intensity and give deeper thought to ways that you can “maximize your tax savings proactively” so that you can achieve more throughout your lifetime.

 

By utilizing the concepts, ideas and strategies in “Taxing Subject Matters Made Easy” you will make your financial journey and tax planning while you are here on earth a more successful and rewarding journey where you can achieve much more–due in large part to “your desire” to fly higher by learning about taxes in an easier, simplified and goal-oriented manner that is designed to take you where you need to go and beyond.

 

And with all that is happening in financial markets worldwide at this time, it is the opinion of the author that “this book belongs in all households of those who are serious about their financial future” and want to position themselves for success in a difficult economy–or any economy, proactively as opposed to after the fact, as it is often too late to meaningfully address or correct at that point.

 

Your goal should be to go through life in a manner where worry, anxiety, fear, frustration, lack of effort and excuses play a minimum role, as they are all just distractions that will slow down your journey toward your financial success (including tax success) that you desire or deserve to achieve to make your life more meaningful and significant while you are yet alive and here on planet earth.

 

You no longer must go out and about and settle for doing without.  Now is the time that you come back ready to attack so that you can have a major impact!  Why be a “bystander” to your own failure success, when you can choose to act and achieve at a level that is your absolute best?

 

All the best to a lifetime of tax and wealth building success…

 

 

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Mortgages & Wealth Building

Posted on by TheWealthIncreaser.com

Learn more about mortgages and how you can use the knowledge gained to make your next home purchase more successful…

 

CAUTION: 15-minute read

 

New Book:  Taxing Subject Matters Made Easy — A beginner’s guide to effective tax management is now available on amazon.com…

 

In the current economy in spite of higher interest rates and action by the FED to not lower rates in the United States, there is still a lot of activity with home loans.  For those who desire to purchase now or in the near future, there is a lot of uncertainty!  However, have you ever thought about the mortgage products that are available that can benefit you optimally or in a more helpful manner in varying economic environments?

 

With the spring season coming into full bloom and birds chirping about, squirrels running about and young fawns coming into the world with great expectation–so too must you have  great expectation if you are considering the purchase of your FIRST home or the moving up into your second home or even better, purchasing a vacation home.

 

In this discussion TheWealthIncreaser.com will discuss mortgages and mortgage options that are available that could lead to a more successful homeownership period for you and your family whether you are now contemplating buying your first home or moving up to the home of your dreams.

 

In order for you to gain a more in-depth understanding of this discussion, it may be helpful for you to visit the following links:

 

Alt- A Loan

A-Paper Mortgage Loan

B/C-Paper Mortgage Loan

How Lenders Rate Credit

DTI Ratios

Refi–Home Equity Loan Info

 

ARM (Adjustable-Rate Mortgage)

A loan that is not of a fixed rate but adjusts upward based on certain criteria such as the prime rate.  Also goes by adjustable, variable or floating loan among other names.  A 5/1 ARM may be at a fixed rate for 5 years and then adjust annually based on market activity, up to an interest cap limit that would be outlined in the closing disclosure and loan documents.   Rates on ARMs adjust based on an index selected by the lender!

 

Adjusted Rate Mortgage (ARM) 2/28 and 3/27 “Fixed Rate” Adjustable Loans

 

Conventional

A loan issued by conventional lenders (banks, credit unions, mortgage companies etcetera) that utilize 28/36 front-end and back-end ratios in order for borrowers to qualify.  However, they also have the ability to adjust those ratios based on certain criteria that they can utilize to adjust the ratios.  Your total DTI (Debt To Income) ratio should be around 36% and no more than 43% with most conventional lenders.

 

A conventional home mortgage is a loan made through a private lender.  In comparison to a Federal Housing Administration (FHA) loan, a conventional loan often requires a higher credit score to qualify.

 

Conventional loans are not offered or secured by a government entity, however the loan can be “guaranteed” by the two government-sponsored enterprises known as Fannie Mae and Freddie Mac!

 

Conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies and the mortgage loan can be guaranteed by the two government-sponsored enterprises (GSEs):

 

1. the Federal National Mortgage Association (Fannie Mae) and

 

2. the Federal Home Loan Mortgage Corp. (Freddie Mac) 

 

Fannie Mae

  • A loan issued by Fannie Mae are originated by “conventional” lenders
  • Created in 1938
  • Considered a government-sponsored enterprise
  • 2-year work history required

Fannie Mae also offers a rehab loan…

Homepath Mortgage

 

Freddie Mac

  • A loan issued by Freddie Mac are originated by “conventional” lenders
  • Created in 1970
  • Considered a government-sponsored enterprise
  • may qualify for a loan with a 1-year work history along with a co-borrower

 

FHA (HUD)

  • A loan issued by FHA are originated by “select” lenders
  • Created in 1934 and became a part of HUD in 1965
  • Loan is secured through GNMA (Ginnie Mae) a government corporation that guarantees mortgage-backed securities (MBS) for the VA and USDA Rural Housing.
  • 31/43 on front and back-end ratios

FHA also offers a rehab loan…

HUD also sells foreclosed homes that were FHA financed and repossessed by HUD

 

An FHA loan is a loan issued by lenders that is insured by HUD and utilizes 31/43 front-end and back-end ratios in order for borrowers to qualify.  However, they also have the ability to adjust those ratios based on compensating factors that they use that are case specific.

 

If you have a credit score of at least 580, you can borrow up to 96.5% of the value of a home with an FHA loan.   Many lenders require a higher score, however the bare minimum if lender offers product is at a score of 580.  Also, the required down payment is only 3.5% if you qualify.  If your credit score falls between 500 and 579, you can still get an FHA loan, but you will need to make a down payment of at least 10% in order to obtain the loan through the FHA!

 

With FHA loans, the down payment can come from savings, a financial gift from a family member, or a grant for down payment assistance.

 

Did you know that there are 5 types of FHA loans?

 

1) Traditional Mortgage

A mortgage that finances a principal residence.

 

2) Home Equity Conversion Mortgage (HECM)

This is a reverse mortgage program that helps homeowners aged 62 and older convert the equity in their homes to cash while retaining the home’s title.  The homeowner can take the funds as a lump sum, in a fixed monthly amount, in a line of credit, or in some combination.

3) FHA 203(k) Improvement Loan

This loan factors the cost of certain repairs and renovations into the amount borrowed.  It’s very helpful for those willing to buy a fixer-upper and put some sweat equity into their home.

4) FHA Energy Efficient Mortgage

This program is similar to the FHA 203(k) improvement loan program, but it’s focused on upgrades that can lower your utility bills, such as new insulation or solar or wind energy systems.

 

5) Section 245(a) Loan

This program works for borrowers who expect their incomes to increase.  The Graduated Payment Mortgage (GPM) start with lower monthly payments that increase over time.  The Growing Equity Mortgage (GEM) has scheduled increases in monthly principal payments.  Both mortgages promise shorter loan terms.

 

Financial Ratios on FHA Loan

Your mortgage payments, property taxes, mortgage insurance and homeowners’ insurance premiums, and any homeowner association fees must generally total less than 31% of your gross income on a monthly basis.  Lenders call this the front-end ratio.  Housing divided by your monthly income equals your front-end ratio.

Meanwhile, your back-end ratio, which consists of your mortgage payment and all other monthly consumer debts, should be less than 43% of your gross income on a monthly basis.  Housing plus your other monthly debt of 12 months or more divided by your monthly income equals your back-end ratio.

 

MIP and not PMI would be applicable on an FHA loan!

 

An FHA loan requires that you pay two types of mortgage insurance premiums (MIPs)—an upfront MIP that can be paid at closing and an annual MIP, which is paid monthly.  The upfront MIP is equal to 1.75% of the base loan amount.

For example, if you’re issued a home loan for $350,000, you’ll pay an upfront MIP of 1.75% x $350,000 = $6,125.

 

You can either pay the upfront MIP at the time of closing, or it can be rolled into the loan and paid monthly along with your other annual MIP!  Additionally MIP/PMI that was once deductible is now in a state of flux as Congress has yet to act on reinstating the deduction on schedule A of the 1040 tax return for those who would otherwise qualify.

MIP payments are deposited into an escrow account that the U.S. Treasury Department manages.  If you end up defaulting on your loan, the funds will go toward the mortgage repayment.

After the initial, one-time payment, borrowers make MIP payments every month.  If the upfront MIP is not financed those payments along with the annual MIP are made monthly.  Mortgage Insurance Premium payments can range from 0.15% to 0.75% annually of the loan amount.  Rates will differ depending on the loan amount, the length of the loan, and the home’s loan-to-value (LTV) ratio.

 

FIXED (Fixed Rate Mortgage)

A mortgage where your payment is basically stable unless taxes, special assessments, stormwater fees, insurance or HOA dues increased.  You make principal and interest payments monthly, and the loan would have an amortization schedule to let you know when pay down and payoff occurs.

 

Fixed Rate Mortgages are generally for 15-, 20-, and 30-year terms with most lenders, however you may be able to craft other loan terms–depending on the lender.

 

USDA

  • A loan issued by the USDA and are originated by “select” lenders
  • Created as FmHA (Farmers Home Administration) in 1946 and the name has been changed several times, and is now known as USDA Rural Development
  • Loan is secured (guaranteed) through GNMA (Government National Mortgage Administration or more commonly called Ginnie Mae), the same agency that secures FHA and VA loans

 

VA

  • A loan issued by the Veterans Administration and are originated by “select” lenders
  • Created in 1944
  • Loan is secured through GNMA (Government National Mortgage Administration or more commonly called Ginnie Mae), the same agency that secures FHA and USDA loans

 

Installment Loan

You can purchase your home over a number of years from the seller and once payments are final you would receive title to the property.

 

Be aware of the pros and cons of utilizing an installment to purchase as there is generally more risk involved than with an outright loan in which you receive the warranty deed and title upon closing.

 

New Home Builder Loan Incentives

When homes sales are slow or interest rates are high, new builders along with mortgage companies may offer mortgages with a lower APR than what is currently available.  In many cases builder’s/mortgage lender will offer rates 1% to 2% less than the prevailing rates.  Keep in mind this discount is usually recouped in the selling price or other ways.

 

Reverse Mortgage

If you are elderly and are at a high equity position with your home and you have a real need for cash, a reverse mortgage may be worth consideration after you have exhausted other options, and they are not sufficient to meet your needs.

 

Reverse mortgages are offered by conventional lenders as well as the FHA and the potential utilization by you warrants careful analysis, consultation with family members and possibly financial professionals upfront–not after the transaction.

 

Hybrid Arm

A hybrid mortgage is yet another option as it allows you to get into the home ownership arena.  The most common is the 5/1, which has an initial fixed term of 5 years followed by adjustable rates that reset every 12 months.

 

Creative Financing

80/20–20% 2nd mortgage may allow you to avoid MIP/PMI

80/20 with 20% down helps you avoid MIP/PMI

80/10/10–may allow you to avoid MIP/PMI

Hard Money

Balloon Loan

Grants -DP Assistance

40 or 45 yr. fixed rate

Interest-Only Loans

High Debt Ratio Loans

Stated Income Loan

Zero Down Payment Loan

Other (a home-buying option that you create)

 

Cash

AS IS often stated, “cash is king” and if you find yourself in financial position to purchase all cash and you have looked at your finances in a strategic manner and determined that a cash purchase will serve you better–a cash purchase can give you peace of mind and a more secure feeling on a daily basis.

 

You would be in position to truly enjoy life at a high level, and you would eliminate what is for most, their largest bill on a monthly basis that is pulled out of their income and paid monthly.

 

All things being equal, a cash offer will often be prioritized above other offers in the mind(s) of most home sellers.  A comprehensive home inspection will still be appropriate, unless you are willing to live with the risks and have calculated those risks into your home buying strategy.

 

Lease Purchase

Although, a loan is not initially involved, leasing is yet another way to get into the home ownership arena.  The key as a buyer is that you must craft the terms in a way that favors you most–not the seller!

 

Secondary Market Activity & Mortgages

Fannie Mae, Freddie Mac, USDA, FHA, VA and other loans are often packaged and sold on the secondary market to help replenish funds for future home buyers.

 

You want to know how the loan that you get was funded and if you invest in your future, mortgage-backed securities and the various securitized mortgage packages, may be worth adding to your portfolio.

 

REITs are yet another investment option if you desire to own an interest in real estate and your goal is to not have the day-to-day management responsibilities that come along with real estate that you personally own and rent out to others.  REITS, if selected appropriately can provide decent returns over time, however there are risks involved, so use caution.

 

A-paper loans are the most desirable in the secondary markets as they are those that are packaged with those who have higher credit scores.  B-paper loans have lower credit scores and as you might imagine, they carry more risk.

 

MIP/PMI Concerns

You want to know upfront about the fees that you will be required to pay but could have possibly been avoided if you planned your home purchase more strategically.

 

You could put yourself in position to avoid the continuous payment of PMI/MIP once you reach a certain equity position (generally 80% LTV) based on your closing disclosure wording and pay off your loan more efficiently.  If you put 20% or more down on your home purchase, you will avoid the payment of this insurance that is designed to help lenders in cases where borrower’s default on their home loan.

 

To reiterate, MIP applies to FHA loans, and PMI applies to conventional loans.

 

You can eliminate MIP/PMI by putting 20% or more down or using creative options to avoid MIP/PMI!

 

You can also have PMI removed once you get to a 20% equity position.  MIP removal may be more difficult as you may have to refinance to a conventional or streamline your loan through FHA, or put a larger down payment upon purchase in order to avoid the continuous payment of MIP.

 

The payment of MIP/PMI has become more burdensome with the expiration of the deduction for tax purposes, however there appears to be a good chance that the deduction will be reinstated.

 

1031 Exchange

If you have rental property, you can possibly do a 1031 exchange and avoid capital gains or ordinary income taxes:

  • A 1031 exchange allows investors to defer capital gains tax on the sale of one investment property by reinvesting the proceeds into another like-kind property.
  • The like-kind exchange must involve real estate properties, not personal property (except in specific cases, such as real estate businesses).
  • The exchanged properties must be in the United States to qualify.
  • There are strict time limits: The replacement property must be identified within 45 days, and the exchange must be completed within 180 days.
  • Cash or mortgage differences, called “boot,” can trigger tax liabilities

 

Overall Concerns

All loans have risk and failure to pay as agreed can or will lead to the lender foreclosing on your home and possibly going after you if there is a shortfall after they eventually sell the property.

 

You must have a favorable credit score upon applying for a loan, regardless of type of mortgage that you select, if you desire a loan at a good or the best rate.

 

You want to as best you can put yourself in position to avoid getting a loan at a bad interest rate by mastering your credit prior to applying for a home loan (knowing the 5 credit factors and how to use that knowledge for your greater benefit), knowing the 3 credit bureaus (Transunion, Equifax and Experian), and knowing the 2 major rating agencies (FICO and Vantagescore) so that you can achieve more.

 

By doing what you need to do in advance of your home purchase you put yourself in a better position to enjoy home ownership and achieve other pressing goals that you may have at the various stages throughout your lifetime.

 

You also want to know what a monthly mortgage consists of prior to–not after your home purchase, along with knowing the realistic cost of maintaining your home.

 

Mortgage Loan Form 1098 is a mortgage statement that you want to become familiar with as it will outline the principal and interest paid for the year, MIP/PMI payments and possibly property taxes paid for the year.  You would receive this form in January or February or the start of the tax season.

 

The payment of property taxes annually is mandatory, the payment of homeowners insurance while you have a loan is mandatory, PMI/MIP is mandatory but may be able to be canceled on some loans (read your closing documents), homeowner association dues are mandatory–therefore you must make your best effort to plan proactively as opposed to re-actively.

 

A home purchase is a serious legal contract, and you want to prepare proactively so that you minimize or eliminate any surprise that could potentially arise!

 

Closing

By doing what you need to do in advance of your home purchase, you put yourself in better position to enjoy home ownership and achieve other pressing goals that you may have.

 

By knowing what mortgage loans exist in the marketplace and knowing how the mortgage markets work, you are putting yourself in a better position than most 1st time or move-up buyers, and the success that you desire in all areas of your life will be more likely to occur.

 

You want to select the right mortgage and title your property appropriately right from the start and by seriously contemplating the material in this post, you are doing your part!

 

A home inspection and appraisal are also something you generally need to do when a loan is involved, and you also want to purchase title insurance (homeowners policy) as it is a requirement of the lender if you will be obtaining financing from them–but you also need title protection to protect your own investment and finance position.  After purchase be sure to apply for homeowner’s exemptions that you qualify for by visiting your local tax office.

 

And just as the falcons and hawks are flying high and swooping down with amazing precision at this time–so too must you at this time spread your wings and fly higher so that you can avoid situations that are dire.  It is the desire of TheWealthIncreaser.com that you will choose the right (or at a minimum good) mortgage product(s) as a result of visiting this site so that you can sincerely get your wealth building journey started off right.

 

Go out into the world and be amazing, as the success that you are about to achieve is not even a thing if you truly believe, because you are now well equipped to receive…

 

All the best…

 

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Filing Status for Income Taxes & Wealth Building

Posted on by TheWealthIncreaser.com

Learn about the various tax filing options so that you can build wealth more efficiently….

 

Caution: 14 minute read

Over the years, many have posed questions and concerns about their filing status and who qualifies as a dependent.  In this discussion TheWealthIncreaser.com will attempt to clear up some of the misunderstanding that you and others may have.

 

Even though filing and dependent statuses can get highly technical for some–it is fairly straight-forward for most!

 

As the final day of the “2024 tax season” comes to an end, you as a taxpayer need to know that your filing status in future years will be based on your circumstances.   According to the IRS, there are five filing statuses that include:

 

Single

Head Of Household

Married Filing Jointly

Married Filing Separately

Qualifying Widow(er)

 

Single

If you are single and have no dependents you would file as single.  It is generally one of the simplest returns to file as you are only including your income, adjustments, deductions and credits that apply to you only, however there are exceptions as you might expect as all tax filing situations are unique.

 

If you are single and have a child that you provide majority support for, you can generally claim the child–(assuming the other parent isn’t qualified to do so) and that could put you in position to file as HOH and that could lead to you claiming a higher standard deduction, qualify you for tax credits such as the child tax credit, earned income credit, and possibly other credits.

 

2024 Single filing thresholds:

Under 65    $14,600
65 or older $16,550

If you are also a homeowner, you may qualify for additional tax savings as you may be able to avoid utilizing the standard deduction and claim itemized deductions instead!

 

Head Of Household

Head of household is generally a more advantageous filing status for those who qualify, compared to other filing statuses with the exception of MFJ and possibly QW.

 

If you have qualifying dependents, you are eligible to file as HOH, generally.  If your income thresholds are less than the numbers below, you may not have to file, however if you want a refund of tax withholding and the benefits of credits and deductions that may allow you to get a refund–you want to take advantage of that opportunity.

 

2024 HOH filing thresholds:

under 65 $21,900
65 or older $23,850

If you are also a homeowner, you may qualify for additional tax savings as you may be able to avoid utilizing the standard deduction and claim itemized deductions instead!

 

Married Filing Jointly

Married couples often find it more advantageous to file jointly, and filing is required if the following income thresholds are met:

 

2024 MFJ filing thresholds:

under 65 (both spouses) $29,200
65 or older (one spouse) $30,750
65 or older (both spouses) $32,300

If you are married and also a homeowner, you may qualify for additional tax savings!

 

Married Filing Separately

Married Filing Separately is often used by those who are separated in marriage.  In other cases happily married couples seeking relief from taxes due to innocent spouse or injured spouse claims of one taxpayer can often file MFS and that can often be a wise move, as it can lead to less taxes being paid by one spouse, and in many cases lowers the overall taxes that they would pay if they were to file as MFJ.

 

The IRS considers a couple married for tax filing purposes until they get a final decree of divorce, or a separate maintenance agreement is in effect.

 

The filing threshold is as follows for 2024 MFS filers:

any age $5–yes $5!

 

Qualifying Widow(er)

 

2024 QW filing thresholds:

under 65 $29,200
65 or older $30,750

 

The term qualified widow or widower refers to a tax filing status that allows a surviving spouse to use the married filing jointly tax rates on an individual return.

 

The provision is good for up to two years following the death of one spouse.  The taxpayer must remain unmarried for at least two years following the death of their spouse in order to qualify for this status.

Form 1310 may also need to be filed so that you can stay in good standing with the IRS!

 

MFJ vs MFS

Many married tax filers want to know whether it is more advantageous to file separately.  You can determine which way is more advantageous by running the numbers (or have your tax professional do so).

 

That’s because there are more tax deductions and credits married couples filing jointly are eligible for.  For example, the Earned Income Tax Credit is generally only available to married couples who file jointly.  The EITC enables low-income households to deduct as much as $7,430 off their taxes if they have three or more children.

 

Similarly, the Adoption Credit and Child and Dependent Care Tax Credit are only available for married couples filing jointly.  These and other credits that you may be eligible for can directly lower your tax bill and result in bigger refunds.

 

Also if you don’t owe any money to the IRS but your spouse does, by filing together your tax refund could be applied toward the tab that your spouse racked up with the IRS.

 

The 7.5% medical deduction that you can claim on schedule A may be available to one income, but with two incomes you wouldn’t qualify based on the 7.5% income threshold.

 

It is Important that you realize that filing jointly means you and your spouse are on the hook for the money you and your spouse owe to the IRS prior to your marriage.

 

As far as tax return retention, you want to keep your tax return for at a minimum of 3 years, and if you are a homeowner you want to keep all of your tax returns permanently!

 

1098-E student loan interest deduction for those who have student loans are available whether you itemize or claim the standard deduction.

 

Dependents

Many want to know who qualifies as a dependent and who they can legally claim on their current year tax return.  It is a common question that unsurprisingly deserves a common answer.

 

Who qualifies as a dependent, depends (no pun intended)?

 

Generally if your income is $5,050 or less you may be able to be claimed by another as a dependent on their return.

 

However, there are other situations when filing is required that can get quite technical.  Additionally in some cases if you are claimed as a dependent by another, you can still file your own tax return utilizing the standard deduction only, as your dependency exemption has already been used up.

 

General rules for dependents

 

These rules generally apply to all dependents:

 

  • A dependent must be a U.S. citizen, resident alien or national or a resident of Canada or Mexico

 

  • A person can’t be claimed as a dependent on more than one tax return, with rare exceptions

 

  • A dependent can’t claim a dependent on their own tax return

 

  • You can’t claim your spouse as a dependent if you file jointly

 

  • You can’t claim yourself as a dependent

 

 

Qualifying child

To qualify as a dependent, a child must also pass these tests:

  • Relationship: Be your son, daughter, stepchild, eligible foster child, brother, sister, half-sister or -brother, stepbrother, stepsister, adopted child or the child of one of these
  • Age: Be under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled
  • Residency: Live with you for more than half the year, with some exceptions
  • Support: Get more than half their financial support from you
  • Joint return: Not file as married filing jointly unless only to claim a refund of taxes paid or withheld

See the full rules for a qualifying child

 

Qualifying relative

A qualifying relative must meet general rules for dependents and pass these tests:

See the full rules for a qualifying relative

When can I claim a dependent?

You can currently claim dependents only for certain tax credits and deductions.  Each credit or deduction has its own requirements.

What if I am a dependent on someone else’s return?

You can be claimed as a dependent and still need to file your own tax return.  Your filing requirement depends on your income, marital status and other criteria.  Learn more by visiting more details on filing requirements for dependents at IRS.gov.

 

See if you need to file: answer these questions to find out…

 

As mentioned earlier in this post, you may want to file (federal and state returns) anyway so you can get any federal and state income tax your employer withheld back as a refund or claim certain refundable tax credits.

 

Dependents, Standard Deduction, and Filing Information, Publication 501

 

Your Federal Income Tax, Publication 17, a “must read” for those who sincerely desire to succeed…

 

What Triggers an Audit?

To round out this discussion on filing status, audit triggers will be presented to help you gain a better understanding of filing requirements and how to avoid unnecessary IRS scrutiny so that you can achieve more in the coming tax seasons.  Among other tax concerns, you want to be particularly aware of common audit triggers.

 

Common Audit Triggers include the following:

 

  • Under-reporting taxable income–retirement, side jobs, 401k loan non-repayment, 1099 or other income not being reported can all lead to under-reporting of income, which the IRS frowns upon

 

  • Claiming large or unusual deductions–business expenses, charitable contributions and the like

 

  • Significant changes from year to year–if you have major changes from your previous tax return, that may cause alarm at the IRS

 

  • Independent contractor or self-employment income not reported–venmo, air b-n-b, lyft, UBER, Turo, Grubhub, Doordash, Roadie and other new economy ways of making income are normally taxable, and the IRS normally receives 1099-k or other 1099s from the platforms or app providers

 

  • Claiming credits that they don’t qualify for–i.e. the EIC, Dependent Credit, CTC etcetera

 

Keep in mind the IRS has matching computer system technology that allows them to cross-reference and easily detect many discrepancies in tax reporting.  Therefore, you want to keep good records and stay abreast of reporting requirements.

 

Additionally, you want to file your tax return annually, and if you need additional time you want to file form 4868, as that will give you an additional six months to get your finances and payment options in place.

 

Likewise, you want to timely file your tax return if you are due a refund as there are limitations in place that would disallow your refund if not done within a 3-year window from the filing deadline–including extensions.

 

If you have “security concerns” about your taxes, you want to give an IP PIN real consideration as an Individual Protection Personal Identification Number can provide added security by providing you a PIN (Personal Identification Number) on an annual basis that requires two-factor verification–thus decreasing the likelihood of fraud occurring against you and your family.

 

Conclusion

Your filing status and determining who is a dependent is generally easy to determine, however on occasion, determining the best filing status or who qualifies as a dependent can be difficult and may require analysis, including doing pro-forma projections using varying filing statuses that you may qualify for.

 

Even on occasions when you are not required to file, you may want to do so if you had taxes withheld as you may be able to get some or all of the withholding back along with additional amounts–depending on your circumstances.

 

Additionally, you may qualify for deductions and refundable credits, therefore by not filing you could be leaving money on the table.  You also want to take your state and local taxes into considerations when deciding your filing status, as even if you qualify at the Federal level to not have to file, you may be required to do so at the State or Local level.

 

In general, your filing status should be easy to decipher, however who qualifies as a dependent may need to be given deeper analysis in some situations!  

 

And with filing status and dependents, and many other areas of taxation, you want to be aware of the everchanging nature of taxation.

 

You want to know proactively that credits, deductions, mileage rates and adjustment ceilings or deductible contribution limits such as on IRAs–change from year to year (usually of an upward nature), therefore you want to be highly conscious and aware of this important fact–as you want to see what numbers are in effect for the current tax year or the year in question (the tax year that you are filing) so that you can improve your analysis and decision making and build wealth more efficiently.

 

If you have concerns, you want to do additional research and/or contact a highly competent tax professional to assist you in the process.  Always remember that a marriage, birth, death, divorce, adoption or the claiming of a parent or other qualifying dependent(s) that occurs by December 31st of the tax year in question has the potential to change your filing status for the current tax year or future tax year(s).

 

In the case of death during the tax year by the primary taxpayer, an executor or personal representative may have to file final return of a decedent, as tax obligations are “not” relieved–even in death.  If not done appropriately you as the executor or personal representative can be held personally liable.

 

After the transition of the primary taxpayer (or spouse), MFJ tax rates are still an option when filing and QW can be done in future years (for a two-year period after transition).  Therefore, it is important that you look at your circumstances in a wholesome way and determine the best way to file.

 

As the primary taxpayer (or spouse of primary taxpayer), you don’t want to pass on to your surviving spouse debt that you incurred while you were alive if you can avoid it.  With married couples, both parties are singularly or jointly obligated.  Tax obligations of your spouse can be paid through the estate or through you, therefore your filing status election and estate planning could be key to you saving money and building wealth more efficiently.

 

Always realize that once your estate is opened up after your transition, the IRS generally gets paid first!

 

Isn’t it time you get a real GRIP on your taxes and finances so that you can ascend higher and do more of what you sincerely desire.

 

Even with all of the economic disarray–now is the time that you put your filing status concerns at bay!

 

Even though the current economy is in upheaval, you don’t have to pursue your goals in error because of the actions of others who are evil.

 

All the best to your filing status success as you work diligently during these tumultuous times to give it your absolute best…

 

Tax Archive—TheWealthIncreaser.com

 

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Understanding Tax Brackets & Wealth Building

Posted on by TheWealthIncreaser.com

Learn how you can achieve more and build wealth more efficiently by gaining a better understanding of tax brackets…

 

Caution: 12-minute read

In the United States, many consumers who are required to file a federal (and state) tax return often find understanding of the system to be difficult and hard to comprehend.  However, the system is not as complicated as many think for most taxpayers and if you file taxes in the United States, you want to put yourself in a more favorable position so that you can achieve at a higher level of excellence throughout your lifetime!

 

In this discussion TheWealthIncreaser.com will end the 2024 tax season by focusing on taxes and how you can gain a better understanding of “tax brackets” so that you can achieve more throughout your lifetime and better prepare for the filing of your 2025 taxes next year, and taxes that you will file in future years.

 

It is the desire of TheWealthIncreaser.com that you will sincerely build wealth more effectively and gain a real understanding of tax brackets as a result of visiting this post.

 

In order for you to better follow this discussion, a few terms will be defined by TheWealthIncreaser.com:

 

Effective tax rate–your effective tax rate would be the rate that you are taxed at from an overall perspective.  If you are in the 10, 12 and 22% tax bracket, your effective rate would be averaged out based on your taxable income and the various tax brackets.

Marginal tax rate–-your marginal tax rates are based on your income according to IRS guidelines and they range from 0, 10, 12, 22, 24, 32, 35, and 37%.

Alternative Minimum Tax–if you had very high income and would be able to avoid taxation altogether or at a very low level under the current tax code, the AMT would come in to ensure that you paid taxes at a minimal level.

Net Investment Income Tax--if you have high income, generally $200,000 and up, you will pay an additional tax of 3.8% on your capital gains after the sale of your assets on your tax return.

Ordinary income–your income that is taxed at ordinary income rates based on your marginal tax rates mentioned above.

Income–income is earnings that come into your household on a daily, weakly, bi-weekly, monthly or annual basis and can take on many forms.

Capital gain–sale of an asset at a gain, usually taxed at the more favorable rate of 0, 15, or 20% which is normally lower than the ordinary income tax rate of many who sell assets.

Dividend–a payment made by corporations to shareholders of record, not all companies pay dividends.

Qualified dividend–a dividend that is taxed at the capital gains rates of 0, 15, or 20%, and is generally more favorable to taxpayers.

Qualified Business Income–taxation on a portion of your pass-through income can possibly be avoided if you qualify for the QBI (pun intended) deduction.

Modified Adjusted Gross Income–income on your tax return after certain adjustments are made, those adjustments will generally lower your taxable income and could put you in a more favorable position for credits, deductions and a lower amount of taxation.

Taxable income–income that is subject to taxation after all of your adjustments, deductions and credits have been entered generally.

Mileage rate–a rate that is paid for business, medical, charitable travel etcetera that is adjusted annually.  The rates differ with the highest going to business mileage.

Standard deduction–the deduction outlined by the IRS that is of a set amount and is usually adjusted upward annually due to inflation.  If the amount is higher than if you itemize, you will generally choose the standard deduction, however there are exceptions when itemized may be a better option even when lower than the standard deduction, so be sure you have a highly competent tax professional to guide you along.

Itemized deduction–deductions that you can take on your tax return that have the potential to increase your tax refund or reduce the amount that you owe if the amount is higher than the standard deduction mentioned above.  The deductions available among others include–medical, taxes, mortgage interest, and charitable contributions.

Exemption–personal exemptions are no longer allowed on tax returns or form W-4 as a result of the TCJA of 2017.

Form W-4–you can complete a W-4 form and claim qualifying children and dependents and enter amounts that you want to withhold so that you can avoid underpayment of taxes or get a larger refund.  The tax system in the United States is pay as you go, and if you fail to do so, you will be penalized–and that will force you to be in the know.

Estimated taxes—taxes paid over the course of the tax season, usually on, April 15, June 15, September 15, and January 15 of the new year.  By paying the right amount or at least being in the ballpark area, you can avoid the penalty for failure to pay your taxes and stay in good standing with the IRS.

Credits–an advantage to you when you qualify that has the effect of reducing your taxes dollar for dollar, thereby providing a bigger refund or the paying of less in taxes.  Credits are better than deductions.

Deductions–an advantage for you on your taxes that are not dollar for dollar but based on a percentage of your taxable income.  They can also provide a bigger refund or the paying of less in taxes for you at tax time.

Dependent

A dependent is generally a qualifying child or relative who relies on you for financial support. To claim a dependent for tax credits or deductions, the dependent must meet specific requirements outlined by the IRS.  You cannot claim yourself as a dependent.

 

The above definitions are the creator of TheWealthIncreaser.com’s take, for a more technical definition of the tax terms click on the links above!

 

Most who file income taxes in the United States will pay taxes at a rate that is based on their income.  Their “marginal tax rate” would be where their income tops off at and is based on tax rates and schedules that come out annually.

 

Your “effective tax rate” effectively combines all of the rates based on your income and averages out the rates to give you your effective tax rate, which is the actual amount of taxes percentage wise, that you would be paying based on your taxable income.

 

On the following chart you will see the tax rates in effect for the 2024 tax year.  Keep in mind that the numbers adjust annually due to inflation and market activity.

 

For tax year 2024, the top marginal tax rates are:

 

37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly).

 

The other rates are:

 

    • 35% for incomes over $250,525 ($501,050 for married couples filing jointly).

 

    • 32% for incomes over $197,300 ($394,600 for married couples filing jointly).

 

  • 24% for incomes over $103,350 ($206,700 for married couples filing jointly).

 

  • 22% for incomes over $48,475 ($96,950 for married couples filing jointly).

 

  • 12% for incomes over $11,925 ($23,850 for married couples filing jointly).

 

  • 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).

 

Note:  Income for taxation at the above rates are based on taxable income for the year, not your gross income for the year!

 

Tax Penalties

April 15th is normally the filing deadline for individuals.  In years when April 15 falls on a weekend or holiday, the deadline gets pushed up to the next business day.

 

Failure to file–25% 

Failure to pay–5% monthly on any balance that is due and maxes out at 25%

.5% if filed on April 16th

 

Interest also accrues, at a rate of 3 percent, compounding daily.

 

Some taxpayers affected by recent natural disasters get extra time to file if it is in a federally declared area.

 

If you are due a refund, you have a 3-year window from the filing deadline to file and claim your refund, otherwise you lose the ability to claim the refund on your federal tax return for the year(s) in question.

 

The filing of form 4868 before the April 15th deadline gives you a 6-month extension–and you can file the form yourself or have your tax professional file.   You can also make a provisional tax payment if you expect to owe.

 

You risk not only a possible “reduction in taxes owed” or a “tax audit” by rushing and not taking advantage of all of your adjustments, credits, and deductions and reporting all of your taxable income, therefore if you need extra time, it may be wise to extend and pay before the 6-month extension expires.

 

Form 1098 Mortgage Interest Statement that is provided to homeowners at tax time will reveal at a minimum your principal and interest payments for the year–points and partial interest may be on your 1098 closing disclosure or settlement statement (be sure store these documents and home improvement documents in a permanent file as they cost time and money to replace) and not included and/or also on form 1098.

 

Therefore, your first year after purchase you may want to provide form 1098 along with your closing documents to your tax professional and also sign up for homestead and other exemptions that you may qualify for at the state and local level.  Whether you should Itemize or take the Standard Deduction should be analyzed annually to see which option serves you and your family better.

 

The amount of your adjustments, credits and deductions claimed may allow you to fall into a lower tax bracket which could lead to the lower payment of taxes, or you receiving a higher refund!

 

Always realize that tax penalties can be substantial and lead to your building of wealth being stagnated, therefore do your best to avoid failure-to-file, late penalties, and any other tax penalties.

 

Tariffs—WTO or World Trade Organization is in existence to help regulate world markets to help establish predictability on the world stage.   In early April 2025, world markets were impacted in an unprecedented way as the United States moved away from world trade cooperation to a world trade paradigm shift of isolation.

 

Even though tariffs are paid by others, when a country implements tariffs, ultimately you as a consumer will pay in the end.  Consumer driven economies will be hurt the most–generally.  Your increased spending as a result of tariffs is in essence a tax, as those increased payments for goods did not exist before the tariffs.  In addition, expect countries whom tariffs were levied against to implement tariffs (retaliatory) in an effort to protect against substantial trade imbalances and also seek other markets to unload their goods.

 

Progressive tax rates in the United States range from 10% to 37% and the goal is for those who make more to pay more–because they have a higher ability to pay.  A tariff causes increases in prices that are often passed on to consumers and is in effect regressive as all pay regardless of income level and is similar to a sales tax that is also regressive.

 

Many economists in the United States predict an average increase of $5,000 or more per household (some predict $3,500 to $7,000) in spending annually as a result of tariffs, and those at the lower end of income will be hurt the most as no progression is in play here (those who earn less have a lower ability to pay)!

 

In simple terms, a tariff is a tax paid by you if you were an importer (for example, you import vases from India) you would pass that tax (or a lower amount) on to your consumers depending on the financial strength of your company.  If you pay a tariff or any other tax as a result of obtaining the vases, you would generally pass the costs on to the consumer (unless you were benevolent) as you are in business to make a profit.

 

The other country whom the tariff is imposed against does not pay the tariff!

 

When it comes to tariffs, the higher your income or net worth, the less you would be affected by tariffs.  If you earn $50,000 you will be hit harder than someone making $500,000, as those who are at the higher end of the “earnings” spectrum are in position to take the expected $5,000 in additional payments on an annual basis in stride, while those who make less will have a much shakier ride.

 

Tariffs can change the way you live economically and you want to prepare yourself as best you can by implementing steps that you can take immediately! 

 

If you are new to this site, you want to familiarize yourself with steps that you can take now–or for repeat visitors, continue to follow the steps that you have been following for years–as your goal is to continue to live your life in balance, regardless of what is occurring in the political, regulatory, economic, societal, technological or legal realm.

 

In light of the 6 trillion lost in stock market activity earlier this month that is causing concern for many, TheWealthIncreaser.com will offer ways that you can possibly reduce the stress that tariffs and other negative market activity is causing, so that you can achieve more during what appears to be difficult and volatile market activity for an indefinite or unknowable period.

 

Whether you are just entering the workforce, or you have been working for years, you want to know your retirement number for at least a 30 year period after you retire, or up to age 95 at a minimum.  In spite of all that is happening in the markets, you may want to stay the course or make adjustments–depending on where you are at as far as reaching your retirement number, your risk-tolerance level, and other goals that you have at this time.

 

The markets are currently shaking (as of April 4th, 2025) but they are not yet destroyed, and by continuing to dollar cost average,  re-balance and utilizing diversification of your assets at this time and doing so with more consistency over time, you may be able to achieve more.

 

You can use asset allocation, diversification and re-assessment of your holdings now, to put your mind more at ease about your future.  Money market accounts, bonds and bond funds, high yield savings, CDs etcetera may need to be looked at and an increased percentage devoted to those accounts, as you may want to reduce your equity position depending on your goals and timeline needed to reach your goals.

 

In this and any economy, you can always decide to spend less, use intelligence in shopping, and take advantage of other money savings strategies that are available.  You may want to wisely make auto and big-ticket purchases and not be led astray by marketing and other distractions.  Many purchases can be put off or purchased later when and where applicable.  Your planned home improvement may have to be re-analyzed and possibly done at a later date or scaled back some.  Additionally, a side gig or second job may be needed or at least given real consideration by you, so that you can continue on your path of making your dreams come true.

 

Conclusion

Always remember that tax brackets adjust annually, and you want to have an idea of how your income is taxed and at what marginal and effective tax rate, so that you can compare from year to year and use analysis to not only plan better, but also implement those plans more effectively and efficiently to help you achieve the goals that you desire in a more time certain manner.

 

Your tax professional should be able to provide you comparison data (and explain the data) from year to year on your “marginal” and “effective” tax rates that you paid so that you can use the data to your advantage in future years.

 

If your marginal tax rate is 22% and your effective tax rate is 13.4%, you want to know that–as by knowing you can gauge what you are paying tax wise as compared to others in your society and use the numbers to plan for your tax payment and earnings in future years based on realistic data!

 

Effective tax management plays an important role in your overall wealth building success, and it is important that you at a minimum learn the basics about taxation as taxation in various forms are here to stay.

 

Always remember, if you don’t contribute to the solution by managing your taxes and finances more effectively, your lack of engagement is normally the main problem that is preventing you from achieving more and building wealth more efficiently during your lifetime.

 

Isn’t it time that you have sway and say about your finances, so that you can make happenings go your way and achieve more from day-to-day?

 

Isn’t it time you use your mental makeup in a better way, so that you can live to fight another day?

 

The time for effective action is now, and by landing on this blog you can “really” learn how!

 

Your ability to comprehend and understand tax brackets can put you in position for a lifetime of success for those who live in the U.S., and for those who are willing to give it their absolute best.

 

By understanding and applying at a minimum what you will learn from tax basics, tax brackets and how tax withholding occur, you will put yourself well ahead of the average taxpayer, however you want to be more than just ahead–your goal is to give it your absolute best so that you will achieve ultimate success as you put procrastination to rest.

 

All the best as you reach higher to achieve the goals that you truly desire, and at the same time put yourself in position to avoid a financial and tax filing quagmire….

 

Disclaimer – TheWealthIncreaser.com does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only.  This article is the author’s opinion based on experience, research and publicly available information.  The inclusion of links to third-party content is not an endorsement by TheWealthIncreaser.com of such content or services but is included to save you valuable time.  Please do your due diligence, independent research and use your own discretion.

 

Tax Archive—TheWealthIncreaser.com

 

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Employee Withholding & the Building of Wealth

Posted on by TheWealthIncreaser.com

Learn more at this time about W-4 withholdings and how you can maximize your tax position…

 

Caution:  15 minute read

As the new year and tax season advances, many have questions or concerns about their federal (and state) tax withholdings, and they want to know how they can more effectively manage those withholdings.

 

And with TheWealthIncreaser.com blog being down for 5 days (March 12th to March 17th) for the first time since creation (01/2014) due to domain hosting and server issues (sincere apologies to all), this discussion takes on more meaning than most, and it is the desire of TheWealthIncreaser.com that you will sincerely build wealth more effectively as a result of visiting this post.

 

In this discussion TheWealthIncreaser.com will address how withholdings on income earned in the United States occur, so that you–or those whom you know can utilize the system to achieve more.

 

W-4 Employee’s Withholding Certificate

Your employer provides you the opportunity to elect withholding for income tax purposes upon hire, or upon request by you if you are a current employee.  That opportunity could allow you the chance to adjust withholding amounts by changing certain elections and/or having additional amounts withheld.

 

By adjusting your withholding amounts, you can get to a point where you have a designated amount withheld so that you can get a refund or owe–or increase the amount of the refund or amount that you will owe the IRS.  Your withholding for the year would be displayed on your form W-2  that you get at tax time from your employer (usually in January or February).

 

Before 2020, you had to claim a certain number of withholding allowances on form W-4 (you could also pick zero).  The amount of federal income tax withheld from your paycheck was then based on how many allowances you claimed.  The more allowances that you claimed, the less the IRS would withhold.  Prior to the change you could claim fewer allowances than what you were entitled to if you wanted to increase your withholding, but you couldn’t claim more allowances.

 

Allowances are no longer allowed on the new form that went into effect in 2020!

 

Generally, upon hire you would complete Form W-4 so that your employer could withhold the correct federal income tax from your pay based on what you desire.   Additionally if you are required to file at the state/local level you may also be required to complete a W-4 upon hire.  If changes are needed, you can complete a new Form W-4 each year and particularly when your personal or financial situation changes.  Depending on the size of your employer, the process would be done through your Human Resources or Payroll department–or if a small operation through your manager or other designated individual(s).

 

Key factors since the arrival of the new form now include:

 

Step 1:  personal information (name, address, SSN) and Single, MFJ, or HOH election

 

Step 2: multiple jobs or spouse works election

Step 3: the number of qualifying children under age 17 multiplied by $2,000 and the number of dependents multiplied by $500 can be entered based on the amount calculated–and if you plan on being eligible for other credits, the estimated amount can also be entered

Step 4:  other income, deductions and extra withholdings (key step for adjustment from your current withholding), and additionally if you expect to have other income such as interest, dividends, retirement income and/or you expect to itemize–you can include extra withholdings based on your own situation

 

Step 5: you would sign and date

 

The IRS now offers a tax estimator that many find helpful when deciding on their withholding amounts.

 

Estimated Taxes

If you are self employed or have W-2 income you can elect to pay estimated taxes and if you choose this option, payments are expected to be paid to the IRS based on your income at intervals of April 15, June 15, September 15 and January 15 of the new year through the EFTPS (you set up online and in a week or so you will receive correspondence in the mail that allows you to finalize setup and start making payments) system or other arrangement that you can set up with the IRS that would allow you to make timely payments.

 

Once your account is set up securely through the EFTPS system you can make payment for the current interval and also schedule payments for up to 3 additional intervals based on the payment date(s) that you select (be sure your account is adequately funded on the dates that you elect to pay), thereby ensuring that you avoid underpayment penalties if your estimate of taxes you owe is accurate or fairly accurate.

 

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

 

Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.

 

You may have to pay estimated tax for the current year if your tax was more than zero in the prior year.  See the worksheet in Form 1040-ES, Estimated Tax for Individuals for more details on who must pay estimated tax.

 

You don’t have to pay estimated tax for the current year if you meet all three of the following conditions.

 

  • You had no tax liability for the prior year

 

  • You were a U.S. citizen or resident alien for the whole year

 

  • Your prior tax year covered a 12-month period

 

You had no tax liability for the prior year if your total tax was zero or you didn’t have to file an income tax return!

 

For additional information on how to figure your estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.

 

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.

 

Estimated tax payments are generally due:

 

  • April 15 for income earned January 1 to March 31 (months 1, 2 and 3 of year)

 

  • June 15 for income earned April 1 to May 31 (months 4 and 5 of year)

 

  • September 15 for income earned June 1 to August 31 (months 6, 7, and 8 of year)

 

  • January 15 of the following year for income earned September 1 to December 31 (months 9 through 12 of year)

 

https://www.irs.gov/payments/pay-as-you-go-so-you-wont-owe-a-guide-to-withholding-estimated-taxes-and-ways-to-avoid-the-estimated-tax-penalty.

 

Interest categories 4th quarter(Oct-Dec) 3rd quarter(Jul-Sep) 2nd quarter(Apr-Jun) 1st quarter(Jan–Mar)
Non-corporate over-payment (for example, individual) 8% 8% 8% 8%
Corporate over-payment 7% 7% 7% 7%
Underpayment (corporate and non-corporate) 8% 8% 8% 8%

 

It is also important to distinguish upon hire or when signing contract whether you are an employee (employer can withhold taxes) or and independent contractor (you are responsible for paying taxes) so that you can stay in good standing with the IRS.

 

W-9 and Business Transactions

If you are a business owner, you may want those who you do business with to submit a W-9 form so that you can withhold taxes or report withholding or payments made to them based on their business identification number or social security number if a sole proprietor.

 

You too can use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person or business who is required to file an information return with the IRS to report, for example:

 

  • Income is paid to you.
  • Real estate transactions.
  • Mortgage interest you paid.
  • Acquisition or abandonment of secured property.
  • Cancellation of debt.
  • Contributions you made to an IRA.
  • Gambling winnings.

 

Learn more by going to the IRS website…

 

FICA

The Federal Insurance Contributions Act of 1935 was signed into law to allow money to be withheld to help establish and keep the social security system solvent and ensure that current recipients receive their payments.  On your paycheck you will see Social Security withholdings (6.2%) up to a a wage limit which “adjusts annually” and Medicare withholding (1.45%) “which is unlimited” under current law.

 

The current total tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total.

 

The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.

 

The combined rate for Social Security and Medicare employer and employee rate is 15.3% total.

 

There’s a maximum wage base for Social Security taxes on earnings, above which no tax is levied.  The wage base is set at $168,600 for 2024, and for earnings in 2025, the base or “taxable maximum” is $176,100.  Again, keep in mind there is no wage base limit for Medicare taxes and Social Security qage base adjusts annually, normally of an upward nature!

 

Other

HSA/FSA and retirement accounts are often withheld by employees who elect the withholding and it is usually a wise choice, as that allows for the” lowering of your taxes” since it is done on a pre-tax basis, therefore it does not go into your taxable income calculation and can lead to a substantial financial windfall for you and your family if utilized effectively.

 

Social Security income does not require withholdings; however you have the option of having taxes withheld if you desire.  Medicare payments can also be withheld from your monthly social security payments if you find it convenient to do so and you elect Medicare for health coverage at age 65.

 

If you received Social Security income you would receive a 1099-SSA form during the tax season and you would include that income along with your other income to determine how much would be taxable up to a maximum of 85%.  If you had taxes or Medicare premiums withheld, they would be displayed on form 1099-SSA.

 

Pension income you can generally elect to have withholdings from pension provider by making the election and completing form W-4p which is very similar to the W-4 process mentioned earlier in this discussion.

 

Self-employment income does not require withholding, but estimated taxes are expected to be paid to the IRS based on your income at intervals of April 15, June 15, September 15 and January 15 of the new year, so if you are self-employed (or an independent contractor) be aware of your responsibilities. 

 

Failure to pay in a timely manner could lead to a “tax penalty” for underpayment of your federal taxes.

 

You can deduct ordinary and necessary expenses from your self-employment earnings to help reduce the amount that will be taxable.  Among others, the deductions include advertising, commissions, postage, phone, utilities, supplies, medical coverage, office expenses, automobile, equipment, furniture and any other expenses related to your business that qualify according to IRS guidelines, and those expenses can be deducted from your income to help reduce the taxes that you will owe at tax time, thereby “lowering your estimated tax payments” that are due on the dates mentioned above.

 

You can also use retirement plans, including SEP-IRAs (up to 25% of earnings can be contributed) to further reduce the amount that would be subject to taxation.  Self employment earnings of $400 or more would also be subject to SE taxation and you would also be able to deduct 1/2 of your SE tax payment on your personal 1040 return.  Your earnings and deductions from self employment as a sole proprietor would go on schedule C and be carried over to schedule 1 and then 1040 page 1.

 

Your earnings that you pay taxes on through self-employment would be used in the 35-year average that is used to calculate your social security benefits when you retire (generally age 62 to age 70), so be aware of that factor.

 

Qualified Business Income may offer you the opportunity to pay less in taxes if you qualify and you timely file your tax return.

 

Gaming/gambling winnings may have tax withholdings up to 24% at the federal level.  Be sure to keep good records as winnings can be offset against losses to help reduce your taxes.  With certain gambling winnings you would receive a form W-2G during the tax season for winnings you had in the previous year.

 

Unemployment Compensation you could choose to have taxes withheld or you can choose not to.  Unemployment compensation requires the payment of taxes, so be sure to plan for the payment at the federal and possibly state level.  If you receive unemployment compensation you would receive a 1099-G during the tax season the year after you received the compensation.

 

IRAs and retirement accounts may be subject to withholding unless an exception applies.  Early withdrawals could also result in an additional penalty.  If contributions are done through payroll they could possibly avoid taxation and penalty until withdrawal at retirement time if you did not tap into the account(s) early.  Your retirement income would generally be reported to you on form 1099R which is similar in content to that of a form W-2 mentioned earlier, your withholdings would be done through a form W-4p which is similar in scope to that of a W-4 that was mentioned earlier.

 

Form 1098 although “no withholding” is done on form 1098 Mortgage Interest Statement, it is included in this post due to the importance that it plays in the building of wealth.  You would receive form 1098 at tax time and if you are a homeowner, it provides in documented form a statement that includes your outstanding mortgage loan balance (usually balance at beginning of tax year) mortgage points paid if any, principal, and interest paid for the year–along with private mortgage insurance or MIP for those who put less than 20% down at the time of their home purchase.

 

Escrow payments made for property taxes may also be included.  The mortgage interest along with property taxes paid can be deducted on schedule A for those who itemize, and mortgage interest, property taxes along with other deductions, can play an important role in reducing taxes or increasing the refund amount that you would receive.  By strategically planning in advance, you can plan from year to year and that planning can play an important role in helping you build wealth more efficiently.

 

1099-K income is income that is often earned in the new gig economy, and TheWealthIncreaser.com would be remiss not to include this income in this post, as 1099k income is subject to taxation and no withholding for tax purposes are done, therefore it is the responsibility of the recipient of 1099-K income to report the income and pay taxes on that income.  Keep in mind the IRS receives a copy of this and virtually all other forms of income that has been discussed in this blog post.  Whether you resell clothing, household items or other goods or services and an electronic record is kept–you may have to report that income depending on the amount.

 

This includes uber, lift, grubhub and a vast array of delivery services and rideshare income that are derived over electronic platforms.

 

Although there was a back and forth on reporting 1099-K income for several years, the form is now active and online marketplace or third-party apps must report when certain thresholds are met (generally when goods and/or services total over $5,000 for tax year 2024 but scheduled to begin at $600 in the future), therefore if you are part of the gig economy you want to plan now for the payment of taxes.

 

Other sources of income depending on type, may also be subject to withholding.  Also be aware of taxation at the local and state levels as it is important to look at your taxes in a comprehensive or wholesome way and analyze from ALL sources–even when what are really taxes, go by other names.

 

In addition, liens, child support and garnishment of your pay can occur (involuntary withholdings) and that is the type of withholding you want to avoid as best you can.

 

Conclusion

 

It is important that you realize that taxation of income at this time in the United States appears here to stay, and if you have income you want to come up with a way to pay your taxes “as you earn” whether by w-4 withholdings through your payroll withholdings as you earn or through the payment of estimated taxes based on what you earn throughout the year and pay at designated intervals in April, June, September and January.

 

By timely managing your finances and paying your taxes you can avoid large tax payments and penalties at tax time that could severely hamper your wealth building efforts.  Although you are the ultimate decision maker, a refund of $1,000 or owing $1,000 is a reasonable target to aim for, assuming your finances are in order from a comprehensive perspective, and you have a strong money management personality.

 

By “planning in advance” you can manage your finances and taxes in a manner where you owe a little–or get a little back, thereby minimizing the financial stress in your life, preventing large losses due to fraud, investing what you would otherwise allow the IRS to hold and otherwise manage your finances more optimally.  Also, don’t forget about the taxation of your assets upon sale, as in many cases you will be taxed at your ordinary income or the generally more favorable capital gains rate.

 

Your withholdings along with your standard deduction or itemized deduction amount, and other adjustments deductions and credits will play a large role in determining if you will owe or if you will get a refund in this and the coming tax seasons.

 

Always realize that “even if you don’t have any income tax withheld” from your wages, you may get a refund if you are eligible for tax credits such as the Earned Income Credit, the Additional Child Tax Credit, American Opportunity Credit and other potential credits that you may qualify for.  Therefore, you would want to ensure that you file your taxes in a timely manner (you have a 3-year window to file, otherwise you lose the refund) as that can put you in better position to manage your money at the various stages of your life.

 

Also, you can elect to file for an extension to pay your taxes (up to October 15th) if you find yourself in the unfortunate position of not planning or planning inappropriately due to lack of knowledge, fatigue, or not knowing about the payment of taxes to the degree that you now know!

 

You and your tax practitioner can extend the deadline for months (by filing form 4868) to give you additional time to come up with the funds needed to pay your taxes.  However, payment is required or at least suggested based on what you expect to owe in taxes–even when extending your time to file.

 

All the best to your withholding and wealth building success as you deserve nothing less…

 

Disclaimer – TheWealthIncreaser.com does not provide and does not intend to provide financial, investment, tax, or legal advice.  Information contained in this article is for informational and educational purposes only.  The inclusion of links to third-party content is not an endorsement by TheWealthIncreaser.com of such content or services but is designed to save you time.  Please do your due diligence and use your discretion and additional independent research so that you can come to your own conclusion as to the best approach to take for your particular situation.

 

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Impact & Wealth Building

Posted on by TheWealthIncreaser.com

 

 

Learn why “the steps that you take toward success” must have “real impact” in your life as you build wealth…

 

As you pursue your goals it is important that you make a real impact as you improve your management of your finances in all areas.

 

In the year 2025, many are not in position to thrive, and their only goal is to stay alive and survive until better days arrive.  Whether an optimistic or pessimistic view applies to you, you want to take steps that can have a real impact on your life and can move you forward in definite ways so that you can not only see–but also experience better days.

 

The real benefit of impactful information is in the execution or acting—not gaining the knowledge alone!

 

You must be determined to put into action what can really move you forward!  It is imperative that you have a clear understanding of what impacts you financially and you must know how you can use more effective steps to direct your actions toward your goals in a more efficient manner so that you are impacting what needs to occur to make your most pressing goals happen in real time!

 

The goal of TheWealthIncreaser.com is to get those who desire real wealth building success the knowledge that is needed in a timely manner so that they can operate daily with “more determination” and make wiser decisions as it relates to their finances throughout their lifetime!

 

In this discussion TheWealthIncreaser.com will take a deeper dive into how you can achieve more and present ways that you can make more of an impact toward achieving your wealth building goals so that you can “have a real opportunity” to achieve more in less time and live more abundantly in 2025 and beyond.

 

  • You must have a yearning to make an impact as it relates to your finances

In life we all have ambitions or goals that we want to achieve, and as far as financial planning is concerned, those ambitions or goals can be numerous.

 

You want to have an attitude of always reaching higher so that you can reach the goals that you desire.  By reaching higher you can operate at a higher level of excellence, (pun intended) and you can do so at this time if you are fully committed and you know the actions that you need to complete as you can now move to a new beat–if you are now ready to move to action appropriately so that it is the goals that you desire that you meet!

 

  • You must know the action steps that you need to take to make a real impact

The reason most people fail to achieve or reach many of their financial goals are that they often don’t know what steps they need to take to make it happen—or more importantly make it happen in as efficient a manner as possible.

 

You will soon be in position to avoid this pitfall that has hampered many over the years.  By setting meaningful goals and knowing the right steps to take to move toward achieving those goals you are properly preparing your heart and mind up for operating at a higher level of excellence and putting yourself in position to reach those significant goals!

 

Click on “the alphabets below”–to see the steps that you can take right now so that you can get started on operating daily at “peak performance” and achieve results that will show–so that you can better utilize information that will put you in the know.

 

A–Cash Flow Analysis

B—Credit  Analysis

C—Comprehensive Financial Analysis

 

  • You must put into action on a consistent basis the steps that will take you toward your goals with more impact

Your application of the steps mentioned above in a manner that is germane to your and your family’s financial future and most important goals are what will help you attain your goals in a more efficient manner.

 

By doing what needs to be done to help improve your finances you are showing discipline and a real desire to reach the goals that you are motivated to achieve.

 

By taking “impactful action steps” on a consistent basis you are showing that you truly believe, thereby setting yourself up for the success that you will soon achieve.

 

Isn’t it time you listen appropriately to your inner voice, learn more as it relates to effective money management that can lead to you reaching many, if not all your goals–so that you can show your true love to your family and others whom you associate with?

 

Isn’t it time you travel down a “road to success” that has fewer twists and turns–and know that narrow is the path that you travel, and abundance is the destination that you seek?

 

It is important that you plan on aggressively attacking your finances and you operate “impactfully” so that you won’t suffer from insecurity as you climb higher and higher towards what you truly desire.

 

When it comes to operating at a high level you want to make sure that the work that you put in proactively has a “real impact” as you must know at all times that it is you who must want to do so and it is you who MUST say GO!

 

You must be sincere in your desire to make a real impact on your finances and life in a better way, and if you are you will pursue your wealth building goals with a higher level of commitment–starting today!  In summary, to achieve at a level that will make a real impact you must have the desire to ignite your own fire inside so that when you achieve your goals, you can glide, and when you land you will know that you truly enjoyed your ride.

 

At all times you must realize that you control your destiny and the direction that you can take in your life.  Now is the time that you not only realize that, but you put action plans into effect so that you can achieve more and improve your score.

 

Did you know that you are:

 

Chosen by God to be anxious for nothing

Chosen by God to know that your daily thoughts mean something

Chosen by God to not be negatively stressed

Chosen by God to not operate with less

Chosen by God not to be a mess

Chosen by God to give it your very best

Adequately blessed by God to pass any test

 

All the best as you operate as “impactfully” as you can, and pursue unlimited wealth building and overall success…

 

Conclusion

 

In the same manner as the creator of TheWealthIncreaser.com was chosen by God to pursue and achieve goals that are not odd–so too can you use the inspiration that you receive to pursue the goals that you perceive and the goals that you were meant to receive, to make something big happen in your life–as you too are chosen by God to DO MORE and reach higher as you pursue your life purpose and other goals that you desire!

 

Isn’t it time that you become more proficient and more consistent in the management of your finances?

 

In 2025 and beyond you don’t have to live in strife if you at this time decide to take control of your financial life!

 

Although achieving your goals are not as easy as 1-2-3 or A-B-C, those goals that you really want to achieve can be conceptualized and brought into existence by you in a relatively straight-forward and timely manner if you apply the right approach.

 

However, it is your responsibility to expend the needed effort to put together a plan that can lead to lasting success for you and your family throughout your lifetime.

 

You no longer have to hesitate or wait and achieve your goals at a time that is late, if you make the decision to pursue more on this date!  Also, be sure to use humor and laughter as a major tool as you build wealth as that approach will play a major role in improving your mental health!

 

Always remember that nothing that you face in life is too hot to handle or too cold to hold!  Your goal is to get more income, cut expenses or do a combination of the two, if that is something that you need to do, and you are sincere about making your dreams come true.

 

You must do what is necessary to get moving toward what you need to make happen to create the right atmosphere to bring more into your life that is rewarding and uplifting while you are here on planet earth, and you must do so knowing your self-worth and have a sincere yearning to reach higher and definitely utilize the gifts that you were given at birth!

 

All the best as you make a major impact toward building true wealth, and put procrastination to rest as you get your life back on track, as you are now, or will soon be, in position to more aggressively attack…

 

 

Return from Impact & Wealth Building to What is the 3 Step Structured Approach 

Return from Impact & Wealth Building to Wealth Building Now Book

Return from Impact & Wealth Building to Wealth Building Axioms Book

Return from Impact & Wealth Building to The Wealth Increaser Book

Return from Impact & Wealth Building to 1-2-3 Credit & Me

Return from Impact & Wealth Building to Financial Management Skills

Return from Impact & Wealth Building to Money Management Personalities

Return from Impact & Wealth Building to Who is Thomas (TJ) Underwood

 

 

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