Teh Financial Coaching
  • Home
  • About Me
  • Work With Me
    • Financial Coaching
    • Budgeting Workshop
    • Tax Services
    • Business Coaching
    • Get Unstuck Adhoc Session
  • ONLINE COURSES
    • Budgeting Course
    • Tax Planning 2024 Course
    • Heal Your Relationship with Money Course
    • LinkedIn Course
  • Blog / Vlog
  • My Podcast
  • Free Resources
  • Testimonials
  • Contact

My Musings

Lessons Learned from 2021 Tax Season

5/10/2022

0 Comments

 
Picture
I've been meaning to write this since I saw many returns that shared these common themes, and I continue to see them when I review my coaching clients' returns.

The below is more or less a summary of common themes that popped up with the tax returns I have prepared or reviewed for my clients. 

  • You will almost always owe taxes if you have RSU vested. 22% is the regular Federal withholding for any RSU vesting. If you have RSUs, you are most likely already at the 32%, 35%, or 37% Federal tax bracket. That alone is already an under-withholding of 10% to 15%. For a $100K of RSU, that's already an additional tax liability of $10K. With a tax liability in the five digits, working with a tax professional is worth investing money in.
  • You have to pay ordinary income tax on the discount you get from ESPP. Usually, it's a 15% discount. Nothing is free. You pay this when you sell. No taxable event when you buy ESPP. Most people fail to report this part in the year they sell.
  • If you have any stock options, this is the part when I actually will tell you that unless you are adept with the intricacies of how these work, you are better off hiring a tax professional. Don't play smart with this. It can become a VERY costly mistake. I've had a few clients owe taxes the size of a mortgage. Have you noticed the market recently? You risk selling investments low due to your optimism in exercising all those stock options the previous year with no proper tax planning. Now talk about tax liabilities you will have to deal with next year when you do your 2022 tax return.
  • Sometimes self-preparation is not worth it. I reviewed a couple of my coaching clients' tax returns. Some have made costly mistakes where we have to amend their return. Amending takes longer to process so you will get your money back much later. Most don't understand how to report the supplemental that goes with their 1099B, so they pay more taxes than they should be.
  • Depreciation on a rental is not a "free expense." You'll end up paying that back when you sell.
  • You need to have a tracking system like cointracker.io if you'll continue doing crypto. I don't prepare my clients' tax returns if they don't have a tracking system since it's a pain in the butt trying to figure out the gains and losses and just trying to identify from the time you buy to sell. Have you looked at the transaction history and tried dissecting it? Do yourself a favor and sign up for the app. I am not a crypto fan, so I don't invest in it.
  • Stay on top of anything you do throughout the year that'll trigger a taxable event, as you will be surprised by your tax bill when tax time comes. Some of the everyday taxable events are RSU vesting, ISO exercise (vest doesn't count), selling stocks/index funds/ETFs (buying doesn't count), selling ESPP (buying doesn't count), 
I will include a section in the Financial Literacy Course (now available for pre-order) deep-diving into some of the above. Understanding your taxes is essential. You can now pre-order and take advantage of the 15% discount (code MomsAreAwesome) till Sunday, May 15th.

The course, however, won't help you figure out proper tax planning. I emphasize tax planning is MORE critical than tax preparation. By the time you file your taxes, it's too late to do anything. So invest in tax planning, especially if you have company equities. Please don't make the costly mistakes of some of my clients trying to save money by not hiring a tax professional. I offer tax planning sessions throughout the year as part of my financial coaching sessions. Schedule a complimentary chat now.
0 Comments

Happy Mother's Day and Anniversary reflections

5/8/2022

0 Comments

 
Picture
Happy Mother's Day to all the human moms and pet moms!

I don't have human kids, but I have two beautiful dogs that I love very much (some pictures below). 
Can you also believe it's been three years since I quit my corporate job at Visa? You can read more about the first month after becoming a full-time entrepreneur in this blog. I started my business at the end of 2016, so it's almost six years since I became a financial coach. 

It's been quite a ride and blessings since, from quitting my job to moving here to a new city in Las Vegas where I didn't know anyone to buying a brand new house to business growth on both the tax and coaching front. It's been a great ride. I am truly blessed. 

I am offering a 15% discount on everything in honor of all the wonderful moms and my Anniversary. Use discount code MomsAreAwesome for the online courses. The sale ends next Sunday, May 15th.

I currently have two courses available. 
The Budgeting course - teaches you the method I use for my budgeting and all my private coaching clients. All you need is Excel or Google Sheet. This course is at the regular price of $59.
LinkedIn course - even though I haven't been on LinkedIn for a while, the philosophy to grow is still the same. So I am selling it now for only $97. Discount is also applicable to this.

And I am super excited to announce that I am currently working on the Financial Literacy course. So I am shooting to have that released in the next week or two. This course comes with a complimentary half an hour of coaching as well.
You can see the full agenda of the course on this site. You can now do a pre-order to take advantage of the discount. 
​
I am also honoring the 15% discount on any of my coaching packages, just as long as you set up the complimentary chat for anytime this month and mention this discount*.

*Discount is not applicable on installment plans.


0 Comments

    Categories

    All
    Budgeting
    Dog
    Entrepreneurship
    Finance Coach
    Grateful
    Retirement
    Savings
    Student Loans
    Tax
    Travel

    Archives

    November 2022
    May 2022
    June 2021
    November 2020
    August 2020
    June 2020
    May 2020
    April 2020
    March 2020
    October 2019
    September 2019
    August 2019
    June 2019
    May 2019
    April 2019
    March 2019
    April 2018
    June 2017
    April 2017
    March 2017
    October 2016
    August 2016

    Categories

    All
    Budgeting
    Dog
    Entrepreneurship
    Finance Coach
    Grateful
    Retirement
    Savings
    Student Loans
    Tax
    Travel

    Subscribe Now
    Follow me

    RSS Feed

  • Home
  • About Me
  • Work With Me
    • Financial Coaching
    • Budgeting Workshop
    • Tax Services
    • Business Coaching
    • Get Unstuck Adhoc Session
  • ONLINE COURSES
    • Budgeting Course
    • Tax Planning 2024 Course
    • Heal Your Relationship with Money Course
    • LinkedIn Course
  • Blog / Vlog
  • My Podcast
  • Free Resources
  • Testimonials
  • Contact