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#FreedomDrivesProgress
Cesar Grajales was born in Colombia and moved to
Miami at the age of 17. His professional background
covers different fields, from the music business industry
and Hispanic entertainment to the stock market. His
unwavering commitment to the preservation of economic
freedom in the United States led him to join LIBRE’s
cause from its beginning; first as a volunteer, then as a
writer for Fox News Latino on political and economic
issues, later as Field Representative and as a Field
Director in LIBRE’s office in South Florida and currently
as Florida State Director. Grajales has successfully
promoted de principles of economic freedom amongst
the growing Hispanic community in Florida. In his current
role, he coordinates events at a state level, and
represents the organization at fairs, forums and
conferences promoting LIBRE’s cause among fellow
Floridians. Grajales has a vast experience in business
administration, management, political campaign
operations and grassroots operations.
CESAR GRAJALES
Florida State Director
Mr. Barrera is a recognized national leader in the
business and Hispanic community. He is an attorney
with over 30 years of business, legal, non-profit and
government experience and he serves as National
Manager of Economic Prosperity for The LIBRE
Institute. Mr. Barrera previously served as President
of the Business Information Clearinghouse (BIC) Mr.
Barrera also served as President and CEO of the
United States Hispanic Chamber of Commerce
(USHCC). Mr. Barrera received his law degree from
the University of Texas School Of Law in 1989 and a
bachelor’s degree from Kansas State University in
1982. He was also educated at Harvard Business
School and the Marshall School of Business at USC.
He has previously been named one of the Top 100
Hispanics in Business as well as one of the Top
Diversity Advocates in America. He currently lives in
Kansas City, MO.
MICHAEL BARRERA
National Manager Economic Prosperity
Hispanic Financial Planning
Michael BarreraNational Manager Economic Prosperity
The LIBRE Institutewww.thelibreinstitute.org
The LIBRE Institute is a non-profit, non-partisan C3 organization. It is committed to strengthening America and building prosperous Hispanic communities through Our Four Pillars that focus on Economic Prosperity, Education, Faith, and Family
Surveys indicate that Hispanics want more information on personal finances and entrepreneurship.
Economic Prosperity Pillar seeks to increase the level of independence within the U.S. Hispanic community by further educating the community on Financial Wellness and Entrepreneurship.
Independence and self-sufficiency create Freedom and Freedom Drives Progress
The LIBRE Institute
What is the Institute?
There are an estimated 54 million Hispanics currently residing in the US
66,000 Hispanics turn 18 every month or almost 800,000 a year
Hispanic households (49%) are more likely to have children under 18 vs. general population (34%)
The Hispanic population is expected to grow 167% from 2010 to 2050 vs. 42% growth for the total population.
By 2020 30.5 million Hispanic entrants into the labor force nearly tripling the 10.7 million reported in 1990
It is estimated Hispanics spend over 1.3 Trillion a year
Hispanics-A Growing Community
Hispanic Short and Long Term Financial Priorities-Reduce Debt 52% vs. 50% G.P. (General Population)
-Building emergency Savings Account 42% vs. 41% G.P.
-Having enough life insurance to protect loved ones 23%-21% G.P
-Saving for a Major Purchase like a car, appliance or vacation 21% vs. 20% G.P.
-Leaving Inheritance for children or other heirs 17% vs. 17% G.P.
-Saving for Retirement 53% vs 62% G.P.
-Protecting investments/Savings 25% vs. 47% G.P.
-Saving to purchase a home 23% vs. 13% G.P.
-Funding education for children/grandchildren 31% vs. 18% G.P.
-Caring for Elderly family members 15% vs. 6 % G.P.
Hispanic Financial Stats
• Total Assets for those earning under $75, 000
• $33,000 vs $97,000 for General Population (GP)
• Total Assets for those earning over 75, 000
• $104,000 vs $ 237,000 for GP
National Debt
• According to Forbes U.S. debt = 10 trillion in 2008
• 2015 =18.2 Trillion dollars and by 2019 expected to be 20.6 trillion
• 93k per person in 2008; 161k per person 2019
• Higher taxes, Lower wages
• Lower standard of living
• Student loan debt is 1.3 Trillion dollars
• Hispanics whose average age is significantly lower will bear burden of increased debt
• Big Difference between debt and deficit
• Personal and Family financial planning becomes even more important
Other Financial Considerations
• Household expenses, health care costs, children’s education, savings and debt level—all near-term concerns—are ranked as higher concerns than retirement.
• Family finances are often multigenerational and global, as evidenced by one in six supporting parents and 42% of non-U.S. born sending money to relatives in their home country.
Healthy & Wealthy Choices
• 70% of the wealthy eat less than 300 junk food calories per day
• 23% of the wealthy gamble
• 80% of the wealthy are focused on accomplishing some single goal
• 81% of the wealthy maintain a to-do list
• 76% of the wealthy exercise aerobically four days a week
• 70% of the wealthy parents require children volunteer 10 hours or more a month
• 67% of the wealthy write down their goals
• 6% of the wealthy say what’s on their mind
• 97% of the poor people eat more than 300 junk food calories per day.
• 52% of the poor people gamble.
• Only 12% of the poor do this
• 19% of the poor people maintain a to do list
• 23% of the poor exercise aerobically 4 times a week.
• 3% of the poor make their children volunteer 10 hours or more a month
• 17% of the poor write down their goals
• 69% of the poor say what’s on their mind!
Healthy & Wealthy Choices
• 67% of the wealthy watch one hour or less of TV every day
• 6% of the wealthy watch reality TV
• 84% of the wealthy believe good habits create opportunity luck
• 76% of the wealthy believe bad habits create detrimental luck
• 86% of the wealthy believe in lifelong educational self-improvement
• 88% of the wealthy read 30 minutes or more each day for education or career reasons
• 23% of the poor 1 hour or less of TV everyday
• 78% of the poor watch reality TV
• 4% of the poor believe good habit create opportunity luck
• 9% of the poor believe bad habits create detrimental luck
• 5% of the poor believe in lifelong educational self-improvement
• 2% of the poor read 30 minutes or more each day for education or career reasons
Mr. Dore-Bernhard earned his finance degree from
Florida International University. He then went on to
pursue his MBA at Nova Southeastern University. He
has held various investment, insurance and mortgage
licenses. His experience in financial planning expands
from bank telling, to having been the youngest
investment portfolio manager at one of the big four US
Banks at the early age of 24. In addition Mr. Bernhard
has been a private banker, a business owner in the
mortgage, insurance, and financial consulting areas, an
occasional writer and a contributor of financial topics
to newspapers and websites. He is committed to
excellence in his work and service, he is goal-oriented,
organized, disciplined, and he demonstrates leadership
based on principles and values. His favorite quote is:
“Change your focus, from making money to serving
more people. Serving more people makes the money
come in.” – Robert Kiyosaki..
MARIO DORE-BERNHARDFinancial Advisor
ClearPoint’s Hispanic Center for
Financial Excellence (HCFE)
ClearPointCCS.org
ClearPointSurviving on a Limited Budget
Mario Dore-Bernhard
Financial Advisor
305.592.9298 - Ext. 2135
ClearPointCCS.org
Objectives
Create a spending plan to help you get
back to basics
Identify ways to increase income and
help you survive on a limited budget
Identify ways to reduce financial stress
and handle your financial situation
ClearPointCCS.org
How Can I Succeed On a Limited Budget?
ClearPointCCS.org
Step 1: Create a Priority Spending Plan
List your current income and expenses
ClearPointCCS.org
Creating a Priority Spending Plan
A Priority Spending Plan:
Ensures you pay the most important items first
Helps you make spending choices that support your goals
Offers a way to track your income and expenses
ClearPointCCS.org
Priority Spending Plan: Step By Step
Identify goals
Step 1
Identify monthly income
Step 2
Prioritize monthly
expenses
Step 3
Subtract spending
from income
Step 4
Adjust your
priority spending
plan
Step 5
Small daily choices can have a big impact on if we reach
our goals or how fast we achieve them
ClearPointCCS.org
Cash Management Plan
ClearPointCCS.org
Cont… (Cash Management Plan)
ClearPointCCS.org
Your Spending Plan
Income January
4 weeks
February
4 weeks
March
5 weeks
April
4 weeks
Total Income $1,600 $1,600 $2,000 $1,600
Expenses:
Rent $800 $800 $800 $800
Car payment $150 $150 $150 $150
Utilities $200 $180 $240 $170
Food $250 $280 $340 $260
Debts $120 $120 $120 $120
Total Expenses $1,520 $1,530 $1,650 $1,500
Disposable income $80 $70 $350 $100
ClearPointCCS.org
Where Does Your Money Go?
Track your expenses for 30 days
Total all columns and expenses
Review your overall expenses
ClearPointCCS.org
Where Does Your Money Go?
Fixed expenses:
The same each month
Variable expenses:
Different each month
Periodic expenses:
Due once or twice a year
ClearPointCCS.org
What Are Your Spending Habits?
Observe how you feel when you need to spend
Avoid going to stores when you feel the need to spend
Substitute the need to spend with something different
Leave your credit cards at home whenever possible
ClearPointCCS.org
Ideal Cash Management Plan
ClearPointCCS.org
Step 2: Differentiate Between Wants and Needs
If expenses exceed income, adjust
your spending plan
ClearPointCCS.org
Essential Needs
• Housing
• Food
• Utilities
• Transportation
ClearPointCCS.org
Step 3: Identify ways to
increase income
• Part-time job / freelance work
• Ask family members for help (e.g. rent contribution, child care)
• Small business
• Public assistance
• Roommate
• Garage sale / online sales (e.g. eBay)
• Cut costs / reduce unnecessary expenses (e.g. gym, cel phone, cable)
ClearPointCCS.org
How Can You Save?
Take lunch to work and eat at
home more
Use coupons, buy store brands
or buy in bulk at club stores
Give handmade cards and gifts
Consolidate plans and services
Utilize free resources at the
library and online
ClearPointCCS.org
Saving to Reach Your Goals
Determine the amount
you can save each month
after expenses
Assign those savings to
each goal
Modify the term to reach
your goals accordingly
Adjust as necessary
ClearPointCCS.org
Reduce Financial Stress
Develop a priority spending plan and debt reduction plan
De-clutter your home
Communicate with your family and
set realistic expectations
Shop with a purpose
Adopt a ‘less is more’ attitude
Eliminate barriers to your success
ClearPointCCS.org
Reduce Emotional Stress
Develop a healthy living plan
Exercise regularly
Get proper nutrition
Maintain relationships with
friends and family
ClearPointCCS.org
Monitor your Progress
ClearPointCCS.org
Succeeding on a Limited Budget!
ClearPointCCS.org
ClearPoint
Thank You for Attending
For more information, visit our website
www.ClearPointCCS.org/HCFE
To set up a counseling appointment,
call us at 305.592.9298 - Ext. 2135
Mario Dore-Bernhard
Financial Advisor
ClearPointCCS.org
ClearPoint
How Do I Get Out of Debt?
Mario Dore-Bernhard
Financial Advisor
305.592.9298 - Ext. 2135ClearPointCCS.org
ClearPointCCS.org
Objectives
Understand the difference between
good debt and bad debt
Identify how small costs add up
Build a workable plan to pay down
debts
ClearPointCCS.org
What Would Your Life Be Like Without Debt?
How much money would you save each month to achieve
your dreams and goals?
ClearPointCCS.org
Good Debt vs. Bad Debt
ClearPointCCS.org
Unexpected Emergencies
ClearPointCCS.org
Understand Why You Are In Debt
Understand why you are
in debt
Observe how you feel
Give each dollar a
purpose
ClearPointCCS.org
Always Spend Less Than You Make
EXPENSES
INCOME
ClearPointCCS.org
Small Costs Add Up
Car Repair
Movies
Coffee
Prescriptions Dining
ClearPointCCS.org
Small Costs Add Up
Today’s $500 when paying
$15 minimum payments takes
6 years to repay.
This means your
total cost is $1,162!
ClearPointCCS.org
Find Additional Dollars
Take lunch to work and cook meals at home
Use grocery coupons and buy store brands
Unplug computers, TVs and other utilities
Bundle services for possible discounts
Buy in bulk at club stores
Utilize websites and online resources
Check out books from the library
Look for ways to generate income
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
ClearPointCCS.org
Maria and Juan
Wanted to save for a down
payment on a home
5 credit cards combined
$8,000 total debt
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
A. Make a list of your debts including balance and interest
rate for each, from smallest to largest balance
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
B. Write down the minimum monthly payment for each debt
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
C. Determine how much extra money you will set aside in your
spending plan to pay down your debts
$125
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
D. Add these additional dollars to the minimum payment of
the first debt on your list
$125
+ 10
$135
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
E. Continue to make the minimum monthly payment on all
other debts
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
F. Once the first debt is paid off, add the monthly payment
amount from the first debt to the minimum payment of the
second debt on your list
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
G. Continue this process until all debts are paid off
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
H. Use any additional income you receive as additional money
to pay down your debts
ClearPointCCS.org
Build a Workable Plan to Pay Down Debts
Do not put more debt on any of these credit cards while they
are being paid off
ClearPointCCS.org
Pay Off Secured Debt: Smallest Balance
DEBT BALANCEINTEREST
RATE (%)
MINIMUM
PAYMENTNEW
PAYMENT
Credit card 1 200 32% 10.00 Card 1 + (additional)
Credit card 2 300 16% 15.00 Card 1 + 2
Credit card 3 500 27% 48.00 Card 1 + 2 + 3
Credit card 4 1000 9% 65.00 Card 1 + 2 + 3 + 4
Credit card 5 2000 14% 159.00 Card 1 + 2 + 3 + 4 + 5
ClearPointCCS.org
Pay Off Secured Debt: Highest Interest Rate
DEBT BALANCEINTEREST
RATE (%)
MINIMUM
PAYMENTNEW
PAYMENT
Credit card 1 200 32% 10.00 Card 1 + (additional)
Credit card 2 500 27% 48.00 Card 1 + 2
Credit card 3 300 16% 15.00 Card 1 + 2 + 3
Credit card 4 2000 14% 159.00 Card 1 + 2 + 3 + 4
Credit card 5 1000 9% 65.00 Card 1 + 2 + 3 + 4 + 5
ClearPointCCS.org
After Unsecured Debt is Paid Off
Consider paying off
secured debt
Build up savings or
retirement accounts
Pay off new debts
ClearPointCCS.org
Pay Off Secured Debt
If you are unable to build a workable
plan to pay down your debts, contact
ClearPoint to help you by implementing
a debt management plan.
ClearPointCCS.org
Summary
Understand the difference between
good debt and bad debt
Identify how small costs add up
Build a workable plan to pay down
debts
ClearPointCCS.org
ClearPoint
Thank You for Attending
For more information, visit our website
www.ClearPointCCS.org/HCFE
To set up a counseling appointment,
call us at 305.592.9298 - Ext. 2135
Mario Dore-Bernhard
Financial Advisor
ClearPointCCS.org
ClearPoint
Financial Success Starts Here
Mario Dore-Bernhard
Financial Advisor
305.592.9298 - Ext. 2135
ClearPointCCS.org
Ten Basic Rules of Money Management
1. Plan
2. Set financial goals
3. Assess your financial
situation
4. Develop a realistic
spending plan
5. Don’t allow expenses to
exceed income
6. Save
7. Pay your bills on time
8. Differentiate between
wants and needs
9. Use credit wisely
10.Keep a record of daily
expenditures
ClearPointCCS.org
What Are Your Dreams?
Car
House
Vacation
Education
ClearPointCCS.org
Can Your Dreams Become Financial Goals?
Goals are statements about things you would like to do or
accomplish. To create goals:
Start with the end in mind
Write your goals down
Make goals specific
ClearPointCCS.org
Can Your Dreams Become Financial Goals?
Set a timeline and budget to accomplish your goals
Measure your progress from time to time
Make adjustments as necessary
ClearPointCCS.org
When Will You Reach Your Goals?
•Can be accomplished within in one year
Short-term goals
•Can be accomplished in 2 to 4 years
Mid-range goals
•Can be accomplished in 5 years or more
Long-term goals
ClearPointCCS.org
If you had $5,000 what would you do with it?
Where Do You Want To Be In 5 Years?
ClearPointCCS.org
Start with the end in mind
Write down your goals
Adjust your goals as necessary
Setting Goals In 3 Simple Steps
ClearPointCCS.org
Adjust Your Goals as Necessary
ClearPointCCS.org
Financial Stability
Reserves
Insurance
Fixed assets
Variable assets
ClearPointCCS.org
Ten Basic Rules of Money Management
1. Plan
2. Set financial goals
3. Assess your financial
situation
4. Develop a realistic
spending plan
5. Don’t allow expenses to
exceed income
6. Save
7. Pay your bills on time
8. Differentiate between
wants and needs
9. Use credit wisely
10.Keep a record of daily
expenditures
ClearPointCCS.org
ClearPoint
Thank You for Attending
For more information, visit our website
www.ClearPointCCS.org/HCFE
To set up a counseling appointment,
call us at 305.592.9298 - Ext. 2135
Mario Dore-Bernhard
Financial Advisor
Ms. Sega is a self-motivated and highly
qualified professional with experience
expanding in financial planning, tax
preparation and banking. She is currently
the President of International Marketing
Agency Inc., located in Miami, Florida. She
earned her Master’s in Business
Administration at Florida International
University. She also possesses a Bachelor
of Economy and a Computer Associate
degree. Ms. Sega has served as a loan
officer for Bank of America and JP Morgan
Chase. In addition she has and continues to
serve as the President of the Peruvian
American Chamber of Commerce.
MARICARMEN SEGAPresident, International
Marketing Agency, Inc.
Video link
MARICARMEN SEGAPresident, International
Marketing Agency, Inc.
MARICARMEN SEGA
TAX & ACCOUNTING
(786) 290-2899
INTERNATIONAL MARKETING AGENCY INC.
2015 TAX RETURN
TOPICS
• VIDEO “VALE LA PENA ESTAR AL DIA CON SUS IMPUESTOS”
• IMPORTANT 2015 TAX CHANGES
• ITEMIZED DEDUCTIONSFOR EVERY TAXPAYER
2015 marks the fourth year of tax law
uncertainty.
Many popular tax laws extended through
last year have expired once again. Outlined
here are some of the major tax provisions
that can impact the amount of income tax
you will pay. But stay alert, if the past is any
indication, Congress could change tax laws
at any time throughout the year.
Individual TaxesTax Rates.
While tax rates remain unchanged for 2015,
the income brackets that apply to these
rates has been increased approximately 1.5
to 2%.
Income Tax Rates - Year 2015
10%, 15%, 25%, 28%, 35%, 39.6%
Long-term Capital Gains Tax rate if in…
10% - 15% income tax bracket 0%
25% - 35% income tax brackets 15%
39.6% income tax bracket 23.8%*
•includes 3.8% Medicare surtax to help pay for
the Affordable Care Act
The higher 39.6 tax rate applies to anyone
who has income above 413,200 single,
439,000 head of household, and
464,850 married filing joint.
Important 2015 tax changes
2015 TAX RETURN
2015 Tax Alert
Deduction and Exemption Phase-out.
For 2015, up to 80% of your itemized
deductions and all of your personal
exemptions could be phased out. This
will impact you if your income is over
$258,250 single, $284,050 head of
household or $309,900 married filing
jointly. If you lost some of your
exemptions or itemized deductions in
2014 you may want a review of your
situation.
Earned Income Credit.
Changes in the Earned Income Credit
that expand the amount of the Credit
and the income qualifications to receive
the Credit are still in place for 2015.
Child Tax Credit.
The child tax credit stays at $1,000 in 2015
with some of the credit being refundable.
American Opportunity Tax Credit (AOTC).
The AOTC (formerly named Hope Education
Credit) is available through 2017. This
provision allows for up to $2,500 in
qualified secondary educational expense
(tuition, fees, and materials) to be deducted
for qualified students. The AOTC covers four
(formerly two) years and has income
limitations ($80,000 for single; $160,000
for married filing joint). Even better, if your
federal tax bill is zero, up to 40% of the
credit is refundable; meaning you still could
get some cash back.
Important 2015 tax changes
2015 TAX RETURN
Health Care Savings Accounts.
The Health Care Savings Account (HSA)
annual contribution limits for those in
qualified high deductible health
insurance plans is $3,350 for a single
taxpayer and $6,650 for a family. If you
are age 55 or over the amount increases
by $1,000.
Social Security Limits.
In 2015, income subject to Social
Security tax will increase from $117,000
to $118,500 with the employee portion
taxed at 6.2%.
Key Tax Laws Extended
A number of popular tax deductions have
not had their provisions made permanent
within the tax code. These on-again, off-
again tax provisions ARE NOT available in
2015. This may change so please keep
required documentation in case Congress
changes their minds once again. Key
among them are:
The $250 “above-the-line” deduction
for unreimbursed classroom expenses
for qualified elementary and secondary
school teachers.
Important 2015 tax changes
2015 TAX RETURN
The $250 “above-the-line” deduction for
unreimbursed classroom expenses for
qualified elementary and secondary
school teachers.
The option to use general sales tax as
an itemized deduction option in lieu of
taking a state income tax deduction.
The deduction for qualified tuition and
educational expenses.
Deductibility of mortgage insurance
premiums as an itemized deduction.
Tax beneficial treatment of direct
charitable contributions from a
qualifying senior’s IRA.
50% Bonus Depreciation for assets
placed in service during the tax year.
Other Key 2015 Tax LawsEstate Taxes. In 2015, the maximum estate
tax is 40%. Up to $5,430,000 in assets are
sheltered from this tax. In addition, the
ability to transfer unused portions of your
estate tax exclusion to your spouse are now
a permanent part of the tax code.
Gift Taxes. The gift tax rates are re-unified
with estate taxes. This means the gift tax
exclusion amount for 2015 is $5.43 million
with a top gift tax rate of 40%. The annual
gift exclusion amount is $14,000 ($28,000
per couple).
Health Care Provisions. In 2015 there are
two Affordable Care Act tax provisions worth
noting.
Important 2015 tax changes
2015 TAX RETURN.
1. Shared Responsibility Payment. If you
do not have qualified health insurance
for yourself and your dependents you
will need to pay a fee. In 2015 the fee
is the higher of; 2% of your yearly
household income (1% in 2014) up to
the cost of the average qualifying
insurance premium OR $325 per
person ($162.59 per child under 18)
with a family maximum of $975 ($285
maximum in 2014). There are
exceptions to this fee if you meet
certain requirements including low
income and lack of affordable
insurance options.
2. Premium Tax Credit. If you purchase your
health insurance through a Marketplace
Exchange you could be eligible to receive
a credit to help cover the cost of your
insurance premium. The credit varies
depending on your location, your income,
number of dependents, and your health
plan classification. It is important to
accurately reflect your current situation
when you apply for this coverage through
the exchange. It is also important to
review your Form 1095-A for accuracy at
the end of each year. Making errors in
this area could result in unpleasant tax
surprises at the end of the year.
Important 2015 tax changes
2015 TAX RETURN
This limit is reduced by total purchases of
qualified property in excess of $200,000
($2 million in 2014). Section 179 allows
small business owners to expense versus
depreciate qualified property up to the
published limits.
Please remember that business
depreciation related provisions only
impact the timing of when you expense
your depreciation and not the total
amount of depreciation you may expense
over the life of the assets purchased.
Important 2015 tax changes
2015 TAX RETURN
Mileage Rates. The amount available for
qualified deduction of automobile use is:
Mileage Rates (per mile)
Item 2015 2014
Business 57.5¢ 56.0¢
Medical / Moving 23.0¢ 23.5¢
Charitable 14.0¢ 14.0¢
Business TaxesSection 179 Limits. The maximum
section 179 deduction for property
placed in service in 2015 is currently
$25,000 ($500,000 in 2014).
Home Office Safe Harbor Calculation.
Remember there is a simplified way to
take a home office expense for a portion
of your home. The expense is up to
$1,500 and replaces the cumbersome
allocation of valid home expenses
allocated by a percent of the home used
for business.
Common Business Credits Expire. A
number of other business tax provisions
expired and are no longer available in
2015. Some of the more common:
15-year straight line depreciation for
qualified leasehold improvements,
restaurant and retail improvements
Important 2015 tax changes
2015 TAX RETURN.
Research and Experimentation Tax Credit
New markets tax credit
Empowerment zone incentives
Work Opportunity Tax Credit
Biodiesel and alternative fuels incentives.
Special charitable deduction rules for
food inventory.
This is a brief summary of some of the most
broadly applicable tax changes in 2015.
There are also many other pre-programmed
changes built into the tax code. Should you
have any questions regarding your situation,
please call.
Itemized Deductions
Once all your income is reported it is time to focus on capturing ALL your allowable
deductions.
And while the IRS is getting very good at automatically notifying you if you under-report
your income, taxpayers are rarely given the same courtesy should they omit a valid
deduction.
How do you make sure you gather and retain the correct information? Provided here is a
list of the most common allowable itemized deductions.
Also included are tips to ensure you are given proper credit for all your valid deductions.
Medical & Dental CostsMedical and Dental expenses are generally deductible to the extent they exceed 10% of
your income (7.5% if age 65 or older). Some of the more common expenses:
2015 TAX RETURN
Itemized
Deductions for every taxpayer
• adoption
• birth control pills (prescribed)
• doctor/dentist fees
• drug/alcohol treatment
• guide dog costs
• handicap access devices for disabled
• hospital fees
• insurance premiums
• prescriptions
• laser eye surgery
• lead based paint removal cost
• life-care fees for medical treatment
• Long term care ins. prem.
• meals/lodging related to hospital stays
• medical devices
• operations
• organ donation
• physician diet/ health programs
• psychiatric care
• school and/or home for disabled
• smoking cessation program cost
• special life items (glasses, limbs,
dentures, wheelchairs, hearing aids,
contacts, etc.)
• transportation (medical related)
• weight loss program costs.
Itemized
Deductions for every taxpayer
2015 TAX RETURN
Taxes
The following taxes are generally
100% deductible
• property taxes
• State/local taxes
• payments to mandatory state funds
• foreign income taxes
• value based auto license fee
• general state/local sales tax*
* You may deduct either general
state/local sales tax or state/local
income tax
The option of taking state income tax OR
general sales taxes as an itemized
deduction is not a permanent part of the
tax code.
Check each year to ensure this provision
is still an option for you.
2015 TAX RETURN
Itemized
Deductions for every taxpayer
Charitable ContributionsBoth cash and property are generally
deductible if donated to qualified
organizations as:
• Churches
• non-profit schools
• non-profit hospitals
• public parks
• boy & girl scouts
• war/veterans groups
• YMCA/YWCA
• environmental/conservation groups.
• agencies such as:
o Red Cross,
o Salvation Army,
o Goodwill, CARE,
o United Way, etc.
2015 TAX RETURN
TIPS: All cash donations now require a
bank record or receipt.
Make sure you keep track of your
mileage to and from the charity. It is
also deductible.
Only donate your vehicle to a
qualified charity that uses, improves
or sells the vehicle at full market
value. If the charity sells your vehicle
without using or improving the
vehicle, your deduction is limited to
the gross proceeds from the sale
and not what could be a higher “fair
market value”.
Make sure donated clothing is in
good or better condition.
Itemized
Deductions for every taxpayer
Casualty & Theft Losses
Casualty and Theft losses are generally deductible to the extent they exceed
10% of your adjusted gross income, are not reimbursable via insurance, and
each event exceeds $500.
Examples include:
• fire
• theft
• natural loss: tornado, hurricane, flood, etc.
• car accident
• vandalism
• other accidents.
Itemized
Deductions for every taxpayer
2015 TAX RETURN
Most miscellaneous deductions are
only deductible to the extent they
exceed 2% of your adjusted gross
income. Items with an “*” are usually
not subject to this income threshold.
• gambling losses to offset gains*
• handicapped job related expenses*
• work uniforms
• un-recovered annuity costs*
• job hunting expenses
• safe deposit box cost
• tax prep fees
• employee business expenses
• IRA/KEOGH administration fees
• business use depreciation
• certain legal fees
• trust administration fees
• hobby expense to offset gains
• 50% of business related meals;
entertainment
• classroom material expense for teachers
• repayments of income*
• repayments of Social Security
• investment related expenses
• in-home office expenses
• job required medical exam
• job required education expenses
2015 TAX RETURN
Miscellaneous Deductions
Itemized
Deductions for every taxpayer
The following are common non-deductible
items:
• accidental damage
• blood donation
• club dues
• commuting expenses
• cosmetic surgery
• drought losses
• estate/gift taxes
• funeral expenses
• gifts to foreign organizations
• gifts to “for profit” groups
• gifts to individuals
• home repairs
• labor union donations
• license fees
• life insurance premiums
• lost property
• non-essential education
• non-health related household help
• health club dues
• PAC donations
• political donations
• property assessments
• raffle tickets
• sales taxes (unless in lieu of state
income taxes)
• Soc. Sec./Medicare
• tax penalties
• termite/insect damage
• tickets and fines
Itemized
Deductions for every taxpayer
2015 TAX RETURN
Non-deductible Expenses
TIPS: Expense Shifting Whenever possible shift
expenses into categories of itemized
deductions to surpass the IRS thresholds
in a given year
Miles, Miles, Miles Capture all your mileage
for business travel, charitable travel and
medical travel. Keep a log book in your car
and note the miles to and from the doctor.
Track the miles to drop off charitable
donations. This area of deductible expense
is often not taken or is poorly captured.
Missing a few things What is deductible?
What is not? When in doubt save the
canceled check, the proof of payment, and
receipt. Without the proof, the expense
cannot be taken.
No cash donations How many times
have you dropped off a bag of clothes
or a lamp and not keep a record of the
gift? Keep a list of items you plan to
give away. Put the list next to or inside
the bag. The required itemization of
items donated can be prepared when
the bag is ready to be dropped off at
your favorite charity.
Donation Traps You must now have a
bank statement, canceled check, or
receipt for all cash donations. So, write
checks to your church versus cash.
Send in a check to the Salvation Army
or favor charity instead of putting cash
in the kettle.
Itemized
Deductions for every taxpayer
2015 TAX RETURN
#FreedomDrivesProgress
