Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Official CPA ofkaab's Morning News Bob Berger, Robert, good morning.
Speaker 2 (00:05):
Well, Merry Christmas, Garry, Jim, and Lucy Holy cow. Do
we have some work to do before the end of
the year so the Grinch doesn't take some of our money?
Speaker 1 (00:13):
Well, yeah, I wanted to talk to you about that
while there's still time before we turn the calendar page over,
what we can do to maybe save ourselves some money
before tax filing time. And now we're in a year
where they passed what the President called the Big Beautiful
Bill all about taxes. So what's new here, Bob. Let's
start with federal Bob.
Speaker 2 (00:34):
Yeah, so this has this big beautiful bill really has
some sweeping changes for individuals. The biggest one is this
what they call a salt limit salt standing for state
and local taxes. Is the limit historically has been just
ten thousand dollars, and most people, accordingly have used the
standard deduction rather than itemize. That limit goes now from
(00:55):
ten thousand to forty thousand dollars for people who make
less than five hundred thousand a year, so it's almost
all of us. And so it really is important, especially
for single individuals now to take a look at the
timing of their year end tax payments. That includes property taxes,
payments of state income tax estimates, and additional licensing that
(01:17):
you might have on your vehicle. So make sure to
get that before December thirty first, because for a single individual,
the itemized deduction is only fifteen thousand dollars and are
the standarduction is only fifteen thousand dollars. So if you
have more than that, you're going to be able to itemize,
and so we haven't been able to do that for
probably four or five years here. So all of your
donations are important, and all of those year end things
(01:38):
that you want to do to take the deduction, you
want to get that done before December thirty first. That's
probably the biggest one we have now, Bob.
Speaker 3 (01:44):
That's a tax deduction or a tax credit.
Speaker 2 (01:48):
That's the tax deduction, so that's not a credit, so
it's just a deduction, and but it goes up from
ten thousand to forty thousand dollars. So but you know,
we lost it before and now it's coming back, so
it's really important that you you take the time to
push those numbers before the end of the year.
Speaker 1 (02:03):
I say the term Bob harvest tax losses. What does
that mean?
Speaker 2 (02:08):
So harvesting losses. You know, the market has just gone
crazy this year, and and so there's some gains that
you may have taken throughout the year. Capital gains will
there's also some capital losses out there that you may
have invested. So a lot of people forget that, Hey,
if I can take these losses before the end of
the year, I can also offset those capital gains. So
it's really important you take a look at your portfolio
(02:29):
and say, hey, you know, yeah, I had I you know,
I sold some Berkshire, I sold something that generated a gain.
Is there anything out there that didn't perform so well
this year that I can take a loss on and
do that before the end of the year so you
don't end up paying taxes on basically phantom income. So
it's real important you take a look at your capital
gains now and I think.
Speaker 3 (02:47):
Go ahead, go ahead, Bob, go ahead please.
Speaker 2 (02:48):
So the other the other one that that really stands
out for me here and people forget about this is
this the new one on the tax exempt tips and
overtime day. Now, this is going to be difficult because
there's no form change. The W two is not going
to have a special box on it. There's nobody's going
to really report that. So you need to get that
from your employer to make sure that the tips that
(03:10):
you receive and then the income to overtime income you
get time and a half. It's only the half. It's
not the time, but the time and a half that
you get for overtime. You don't have to pay tax
on that, but your employer doesn't have to report that
to you, and they accumulate that, and so you need
to make sure you ask your employer for that information
and you can include that on your tax return.
Speaker 3 (03:31):
Okay, let's ask about Social Security, because Trump says no
more tax on Social Security? Now, what does that mean exactly?
It's not exactly that's not exactly true.
Speaker 2 (03:41):
Go ahead, you're correct, is not exactly true. So you know,
as we've talked about historically, it's very difficult to not
tax Social Security benefits because it's such a large revenue
generator for the FED. What they did instead of was
they allowed you to if you're a senior, you can
take a six thousand dollars deduction, not a credit deduction
(04:04):
against your taxable income. And again there's some income limitations
that are associated with that. But the the senior deduction
is six thousand dollars per person and it's important that
that if you're if that sixty five age or older
than that, you're eligible for that deduction.
Speaker 3 (04:21):
All right, what about in Nebraska, they've talked about taxing
social not taxing Social Security in Nebraska.
Speaker 1 (04:27):
How does that work?
Speaker 2 (04:28):
That is correct? So so nebras state and Nebraska does
not tax social Security benefits, so you basically reduce reduce
your taxable income by that amount and it's not taxed.
So that that was in place last year, so that
Nebraska is like most states. Iowa does it as well,
doesn't tax your Social Security benefits. So those are those
are really really good.
Speaker 1 (04:47):
And if you have a flexible spending account, you want
to use that up too, right before the end of
the year.
Speaker 2 (04:51):
Yeah, all of the all of the retirement benefits you
have through your employer, make sure you maximize your furrow
one k. This year is is sort of a weird
year for the people ages sixty to sixty three. There's
a slight increase in benefits catch up benefits if you
want to do that of it, like three seven hundred
and fifty bucks, so you can contribute more to your
(05:11):
four oh one k if you're in that age group
this year and it's you know, it's an unusual provision
and it's just for this year, okay, so it'll be
really interesting to do that.
Speaker 1 (05:20):
Well.
Speaker 3 (05:20):
And there's one other thing for those who've saved well
on their four oh one ks and iras. Once you
reach a certain age, you have a required distribution every year. Well,
you have such vast wealth, it probably didn't matter to you,
but that means you have to take it. And if
you don't want to be taxed on it, maybe set
up a donor advice fund or some sort of charitable
(05:41):
operation if you.
Speaker 1 (05:42):
Want to give it away.
Speaker 2 (05:44):
Correct, So if you're required to take a distribution, you know,
and they push those those numbers back a little bit
depending on your age, and sometimes it's seventy two, sometimes
it's seventy four. That you have a time at which
you have to start taking those required minimum distributions. That
qualified charitable distribution is one of the best things you
can do. If you have a charitable intent, you know,
(06:06):
be sure to contribute to the charity directly from your
retirement account. It can't go to you first and then
to the charity. It has to go directly from the
retirement account to the charity, and then you don't pay
taxes on those funds that you contribute directly to the charity,
and you've avoid the itemized deduction limits too. So that's
a great, a great thing to do if you're charitably inclined.
Make sure you do that before the end of the year,
(06:26):
and make sure that payment goes directly to the charity
that you want to do.
Speaker 1 (06:30):
All I contribute to excellent info. Robert. Thanks continue to
be interesting. We appreciate the time.
Speaker 2 (06:35):
Thanks very much you guys and Gary, congratulations on your
remarkable career and stay profitable in retirements.
Speaker 1 (06:40):
Yes, sir, thanks man, I appreciate it very much. Bob Burger,
CPA Burger, Elliott and Pritchard here
Official CPA ofkaab's Morning News Bob Berger, Robert, good morning.
Speaker 2 (00:05):
Well, Merry Christmas, Garry, Jim, and Lucy Holy cow. Do
we have some work to do before the end of
the year so the Grinch doesn't take some of our money?
Speaker 1 (00:13):
Well, yeah, I wanted to talk to you about that
while there's still time before we turn the calendar page over,
what we can do to maybe save ourselves some money
before tax filing time. And now we're in a year
where they passed what the President called the Big Beautiful
Bill all about taxes. So what's new here, Bob. Let's
start with federal Bob.
Speaker 2 (00:34):
Yeah, so this has this big beautiful bill really has
some sweeping changes for individuals. The biggest one is this
what they call a salt limit salt standing for state
and local taxes. Is the limit historically has been just
ten thousand dollars, and most people, accordingly have used the
standard deduction rather than itemize. That limit goes now from
(00:55):
ten thousand to forty thousand dollars for people who make
less than five hundred thousand a year, so it's almost
all of us. And so it really is important, especially
for single individuals now to take a look at the
timing of their year end tax payments. That includes property taxes,
payments of state income tax estimates, and additional licensing that
(01:17):
you might have on your vehicle. So make sure to
get that before December thirty first, because for a single individual,
the itemized deduction is only fifteen thousand dollars and are
the standarduction is only fifteen thousand dollars. So if you
have more than that, you're going to be able to itemize,
and so we haven't been able to do that for
probably four or five years here. So all of your
donations are important, and all of those year end things
(01:38):
that you want to do to take the deduction, you
want to get that done before December thirty first. That's
probably the biggest one we have now, Bob.
Speaker 3 (01:44):
That's a tax deduction or a tax credit.
Speaker 2 (01:48):
That's the tax deduction, so that's not a credit, so
it's just a deduction, and but it goes up from
ten thousand to forty thousand dollars. So but you know,
we lost it before and now it's coming back, so
it's really important that you you take the time to
push those numbers before the end of the year.
Speaker 1 (02:03):
I say the term Bob harvest tax losses. What does
that mean?
Speaker 2 (02:08):
So harvesting losses. You know, the market has just gone
crazy this year, and and so there's some gains that
you may have taken throughout the year. Capital gains will
there's also some capital losses out there that you may
have invested. So a lot of people forget that, Hey,
if I can take these losses before the end of
the year, I can also offset those capital gains. So
it's really important you take a look at your portfolio
(02:29):
and say, hey, you know, yeah, I had I you know,
I sold some Berkshire, I sold something that generated a gain.
Is there anything out there that didn't perform so well
this year that I can take a loss on and
do that before the end of the year so you
don't end up paying taxes on basically phantom income. So
it's real important you take a look at your capital
gains now and I think.
Speaker 3 (02:47):
Go ahead, go ahead, Bob, go ahead please.
Speaker 2 (02:48):
So the other the other one that that really stands
out for me here and people forget about this is
this the new one on the tax exempt tips and
overtime day. Now, this is going to be difficult because
there's no form change. The W two is not going
to have a special box on it. There's nobody's going
to really report that. So you need to get that
from your employer to make sure that the tips that
(03:10):
you receive and then the income to overtime income you
get time and a half. It's only the half. It's
not the time, but the time and a half that
you get for overtime. You don't have to pay tax
on that, but your employer doesn't have to report that
to you, and they accumulate that, and so you need
to make sure you ask your employer for that information
and you can include that on your tax return.
Speaker 3 (03:31):
Okay, let's ask about Social Security, because Trump says no
more tax on Social Security? Now, what does that mean exactly?
It's not exactly that's not exactly true.
Speaker 2 (03:41):
Go ahead, you're correct, is not exactly true. So you know,
as we've talked about historically, it's very difficult to not
tax Social Security benefits because it's such a large revenue
generator for the FED. What they did instead of was
they allowed you to if you're a senior, you can
take a six thousand dollars deduction, not a credit deduction
(04:04):
against your taxable income. And again there's some income limitations
that are associated with that. But the the senior deduction
is six thousand dollars per person and it's important that
that if you're if that sixty five age or older
than that, you're eligible for that deduction.
Speaker 3 (04:21):
All right, what about in Nebraska, they've talked about taxing
social not taxing Social Security in Nebraska.
Speaker 1 (04:27):
How does that work?
Speaker 2 (04:28):
That is correct? So so nebras state and Nebraska does
not tax social Security benefits, so you basically reduce reduce
your taxable income by that amount and it's not taxed.
So that that was in place last year, so that
Nebraska is like most states. Iowa does it as well,
doesn't tax your Social Security benefits. So those are those
are really really good.
Speaker 1 (04:47):
And if you have a flexible spending account, you want
to use that up too, right before the end of
the year.
Speaker 2 (04:51):
Yeah, all of the all of the retirement benefits you
have through your employer, make sure you maximize your furrow
one k. This year is is sort of a weird
year for the people ages sixty to sixty three. There's
a slight increase in benefits catch up benefits if you
want to do that of it, like three seven hundred
and fifty bucks, so you can contribute more to your
(05:11):
four oh one k if you're in that age group
this year and it's you know, it's an unusual provision
and it's just for this year, okay, so it'll be
really interesting to do that.
Speaker 1 (05:20):
Well.
Speaker 3 (05:20):
And there's one other thing for those who've saved well
on their four oh one ks and iras. Once you
reach a certain age, you have a required distribution every year. Well,
you have such vast wealth, it probably didn't matter to you,
but that means you have to take it. And if
you don't want to be taxed on it, maybe set
up a donor advice fund or some sort of charitable
(05:41):
operation if you.
Speaker 1 (05:42):
Want to give it away.
Speaker 2 (05:44):
Correct, So if you're required to take a distribution, you know,
and they push those those numbers back a little bit
depending on your age, and sometimes it's seventy two, sometimes
it's seventy four. That you have a time at which
you have to start taking those required minimum distributions. That
qualified charitable distribution is one of the best things you
can do. If you have a charitable intent, you know,
(06:06):
be sure to contribute to the charity directly from your
retirement account. It can't go to you first and then
to the charity. It has to go directly from the
retirement account to the charity, and then you don't pay
taxes on those funds that you contribute directly to the charity,
and you've avoid the itemized deduction limits too. So that's
a great, a great thing to do if you're charitably inclined.
Make sure you do that before the end of the year,
(06:26):
and make sure that payment goes directly to the charity
that you want to do.
Speaker 1 (06:30):
All I contribute to excellent info. Robert. Thanks continue to
be interesting. We appreciate the time.
Speaker 2 (06:35):
Thanks very much you guys and Gary, congratulations on your
remarkable career and stay profitable in retirements.
Speaker 1 (06:40):
Yes, sir, thanks man, I appreciate it very much. Bob Burger,
CPA Burger, Elliott and Pritchard here
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