INDIVIDUAL SERVICES

Tax Advisory & Preparation for Individuals

Whether you have straightforward finances or complex situations involving investments, self-employment, or other factors, Evans Sternau CPA offers Tax Advisory & Preparation services with personalized guidance to make tax season stress-free and efficient.

Key Reasons Tax Advisory & Preparation are Important

Your taxes are based on the things you do throughout the year, so why think about taxes only as the filing deadline approaches? Our Tax Advisory services allow us to support you throughout the year as you make critical financial decisions that will impact the taxes you owe. We are also able to prepare tax returns for individuals, estate and trust clients.

Personal Tax Advisory & Preparation

On-Call Tax Consulting

We are committed to being available to our clients – in fact, we’ll answer your call, return it within an hour, or schedule time to talk ASAP.

Annual Tax Planning

We meet with you during the year to make adjustments before year-end – including implementing tax strategies and future-planning.

Tax
Projections

We prepare an estimate of your obligation in order to minimize penalties and give you a better handle on cash flow.

Tax Advisory Service Packages

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

Estimated Tax Payments
Estimated tax payments for individuals are regular payments made directly to the tax authorities to fulfill tax obligations on income not subject to withholding, such as self-employment income, rental income, or investment gains. These payments ensure that taxes are paid throughout the year to avoid penalties for underpayment. Individuals who expect to owe a significant amount in taxes calculate their estimated tax liability and make payments quarterly. Properly estimating and making these payments help individuals meet their tax obligations and manage their financial responsibilities while avoiding potential penalties for insufficient prepayment of taxes.

Itemized Deductions
Itemized deductions are specific expenses that taxpayers can deduct from their taxable income to reduce their overall tax liability. These deductions include expenses like mortgage interest, medical expenses, state and local taxes, charitable contributions, and certain job-related expenses. Taxpayers can choose to itemize their deductions instead of taking the standard deduction if their total itemized deductions exceed the standard deduction amount, which can potentially lower their taxable income and result in a smaller tax bill.

Grouping Election
A grouping election, in the context of U.S. tax regulations, is the process by which taxpayers with multiple business activities can choose to treat them as a single entity for tax reporting purposes. This allows related activities to be combined, potentially simplifying tax reporting and optimizing deductions. The election is made under specific guidelines provided by the IRS, such as the "passive activity grouping rules." By grouping activities, taxpayers can meet certain material participation thresholds, affecting how losses are used, rental income is treated, and other tax implications. This strategy can lead to more efficient tax management and financial planning.

Net Investment Income Tax
The Net Investment Income Tax (NIIT) is a U.S. tax provision introduced under the Affordable Care Act. It imposes an additional 3.8% tax on certain net investment income for higher-income individuals, estates, and trusts. Net investment income includes interest, dividends, capital gains, rental and royalty income, and passive income from businesses. The tax applies to individuals with modified adjusted gross income (MAGI) over specific thresholds. It aims to fund Medicare expansion and healthcare initiatives. Properly understanding and planning for the NIIT is essential for high earners, as it can affect overall tax liability and investment strategies.

Investment Allocation
Investment allocation, particularly in the case of qualified dividends, can have a significant impact on taxes. Qualified dividends are typically taxed at a lower capital gains tax rate, which can lead to reduced tax liability for investors. Properly allocating investments to take advantage of this lower tax rate can help investors optimize their tax strategy and potentially increase after-tax returns on their investments.

Passive & Non-Passive Income
Passive income and nonpassive income differ in their level of involvement and taxation. Passive income, like rental income or earnings from limited partnerships, involves minimal active participation and is generally subject to passive activity loss rules. These rules limit the offsetting of passive losses against nonpassive income. Nonpassive income, on the other hand, results from active involvement, such as salary or business earnings. It's typically fully taxable and not constrained by passive loss limitations. Distinguishing between passive and nonpassive income is crucial for tax purposes, as it affects the treatment of losses and deductions in different contexts.

Investment Interest Expense
Tax planning for investment interest expense involves strategic management of interest payments incurred on loans used to finance investments. Investors can potentially deduct investment interest expenses, subject to certain limitations. By optimizing the timing and structure of investment-related borrowing, individuals can maximize deductible interest, potentially offsetting taxable investment income. Taxpayers need to navigate rules that differentiate between qualified and non-qualified interest expenses and consider how the deduction interacts with other tax considerations. Careful planning ensures investors leverage interest expenses to minimize their overall tax liability while effectively managing their investment portfolio.

Review of RMD Requirements
Required Minimum Distributions (RMDs) impact taxes as they represent the minimum amount individuals with tax-deferred retirement accounts, like traditional IRAs and 401(k)s, must withdraw each year after reaching a certain age (usually 72, as of my knowledge cutoff date). These withdrawals are subject to income tax and can potentially increase a retiree's overall taxable income, which may push them into a higher tax bracket and result in a larger tax bill. Failing to take RMDs or taking less than the required amount can lead to substantial IRS penalties, so it's essential for retirees to plan for these distributions and their associated tax implications.

Solo 401(k)
A Solo 401(k), also known as an Individual 401(k) or a one-participant 401(k), is a retirement savings plan designed for self-employed individuals and business owners with no full-time employees, except possibly a spouse. It allows these individuals to make both employee and employer contributions, potentially enabling them to save more for retirement. This plan offers the flexibility to contribute a percentage of their income as an employee and contribute additional amounts as an employer, making it a valuable retirement savings option for sole proprietors and small businesses.

Traditional IRA Contributions
Traditional IRA contributions are funds that individuals deposit into an Individual Retirement Account (IRA) that is not subject to taxation in the year of contribution. These contributions are often made with pre-tax dollars, which means they can lower an individual's taxable income for the year in which they are made. The growth and earnings within a traditional IRA are tax-deferred until the individual withdraws the funds during retirement, at which point they are typically subject to income tax.

Review of Taxability of Social Security
Social Security benefits can be subject to federal income tax depending on the recipient's total income. If your combined income (which includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits) exceeds certain thresholds, a portion of your Social Security benefits may become taxable. The taxable amount can vary, with a maximum of 85% of your benefits subject to income tax, and the specific calculations depend on your income level and filing status.

Gift Stock to Children for Tuition
Gifting stock to children involves transferring ownership of shares or securities from a parent or guardian to their children. This can have tax implications, as any capital gains on the stock may be subject to capital gains tax when the children eventually sell the stock. However, gifting stock can be a tax-efficient way to transfer wealth, especially if the children are in a lower tax bracket, as they may pay a lower capital gains tax rate compared to the parent.

More About Evans Sternau CPA

Our core values are proactiveness, responsiveness, and support – they help us ensure that we continue to serve each and every one of our clients to the highest level possible

Proactiveness: Tax, accounting, and advisory isn’t just about solving problems when they arise – Evans Sternau CPA implements better solutions and performs routine checks year-round.
Responsiveness: Keeping all parties informed, always, means everyone is operating with full awareness and to the fullest extent.
Support: Whatever your tax, advisory, and accounting needs are, Evans Sternau CPA guarantees that we make each and every one of our clients feel supported when they work with us.

INSIGHTS FOR YOU

Ready to Work With a Proactive CPA?

Click Get a Quote to fill out our questionnaire – once completed, you will be able to schedule a meeting to talk with one of our CPAs directly. We look forward to hearing from you.

INDIVIDUAL SERVICES

Tax Advisory & Preparation for Individuals

Whether you have straightforward finances or complex situations involving investments, self-employment, or other factors, Evans Sternau CPA offers Tax Advisory & Preparation services with personalized guidance to make tax season stress-free and efficient.

Key Reasons Tax Advisory & Preparation are Important

Personal Tax Advisory & Preparation

On-Call Tax Consulting

Annual Tax Planning

Tax
Projections

Tax Advisory Service Packages

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

More About Evans Sternau CPA

INSIGHTS FOR YOU

What Is Cost Segregation Study Process and Benefits

How to Calculate QBI: Eligibility, Rules, and Examples

Tax Preparer Responsibilities: A Guide to Key Duties

Ready to Work With a Proactive CPA?

Contact Us

Locations

Business Services

Individual Services

Get our newsletter!

INDIVIDUAL SERVICES

Tax Advisory & Preparation for Individuals

Whether you have straightforward finances or complex situations involving investments, self-employment, or other factors, Evans Sternau CPA offers Tax Advisory & Preparation services with personalized guidance to make tax season stress-free and efficient.

Key Reasons Tax Advisory & Preparation are Important

Personal Tax Advisory & Preparation

On-Call Tax Consulting

Annual Tax Planning

Tax Projections

Tax Advisory Service Packages

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

More About Evans Sternau CPA

INSIGHTS FOR YOU

What Is Cost Segregation Study Process and Benefits

How to Calculate QBI: Eligibility, Rules, and Examples

Tax Preparer Responsibilities: A Guide to Key Duties

Ready to Work With a Proactive CPA?

Contact Us

Locations

Business Services

Individual Services

Get our newsletter!

Tax
Projections