Abrams Financial Group

12/30/2024

Have a blessed and holiday.

11/27/2024

Perhaps this year, more than ever, Thanksgiving gives us a chance to appreciate what we have – friendships, relationships, and a sense of connection. These gifts are priceless.

I also want to thank you for choosing me as your trusted financial professional and for allowing me to help you pursue your goals. That’s a trust I never take for granted.

Although this holiday may be a unique one, I hope it brings you some beautiful memories. I wish you a great Thanksgiving and a wonderful holiday season.

12/08/2020

Some food for thought!
As a business owner in these trying times your positive mental attitude will help you whether this storm. Never give up, know that you will be successful and act as if it were impossible to fail!

08/06/2020

FYI, Here is some food for thought!
Due to Covid-19, a number of people have been layed off and are receiving federal or state unemployment insurance. Some individuals may receive as much as $20,000 over a 39 week period.

The receipt of these funds have helped a number of families to get by during this time in our history. One thing you must remember is that according to IRS guidelines these funds are considered to be taxable income to the recipient and will be added to any other 2020 earned income received during the year.

Hopefully, you are currently withholding federal taxes with each unemployment payment received. If not and in order to avoid a substanial tax bill in 2020 consider making some estimated tax payments ASAP. This will help to offset a some of the possible tax liability incurred for the year.

I hope this information has been helpful.

All the Best and stay safe!

06/16/2020

Don’t wait or it might be too late!
2019 IRA Tax Year deadlines and contribution limits.

To receive a 2019 contribution, IRAs must be established by the tax filing deadline (without extensions) for the tax year in which personal contribution(s) will apply. Any applications must be issued by July 15, 2020 for contributions to a new IRA to be reported as 2019 contributions. Contributions into existing IRA contracts must be postmarked by July 15, 2020 and the contract must allow for additional premium. Below are some tips that will help you meet all requirements.

New Applications:
The Abrams Financial Group will accept and report 2019 personal contributions to Traditional, SEP and/or Roth IRAs* for new applications issued on or before Wednesday, July 15, 2020. There must be a written indication on or accompanying the premium that clearly indicates the premium is intended as a 2019 contribution.

Annual IRA contributions help lower your taxes and continue to build solid financial foundation.

Let us help you in obtain your financial freedom.

05/19/2020

Can you refinance your mortgage during forbearance?

The chances of refinancing during a forbearance are slim. Lenders will likely not be able to scrutinize your loan during forbearance.

Borrowers typically won’t have to pay additional interest on their mortgage in forbearance. The amount of interest and interest rate stays the same according to the borrower’s contract.

“During a forbearance plan, interest is not paid but still accrues in accordance with the terms of the note,”

Forbearance becomes a ‘Scarlet Letter’ on credit reports

Mortgages in forbearance as a result of COVID-19 have to be reported as “current” on credit reports.

That is the law, as laid out in Section 4021 of the CARES Act passed by Congress at the end of March. It says servicers “shall report the credit obligation or account as current.”

But, it turns out there’s a workaround that can make it difficult for people with mortgages in forbearance to get another home loan after the COVID-19 crisis is over OR refinance – for as long as a year after the forbearance period ends. That can impact their ability to refinance or buy a home when times are better.

The CARES Act does not mention the comments section of credit reports, and that’s where forbearance notations are going.

Any reference to forbearance on a credit report, including in the comments section, can be a “scarlet letter” for an applicant hoping to get a home loan. Said David Stevens, the former head of the Mortgage Bankers Association.

“I think the intent of lawmakers is that forbearance would not harm your credit, when in fact that label may do just that,” Stevens said. “I don’t believe consumers are aware they have this scarlet letter being reported on their mortgage.”

The way credit bureaus such as Experian, Transunion, Equifax are reporting forbearance does show the mortgages as current, according to documents reviewed by HousingWire. In the section that lists how many times a mortgage had late payments, broken out by 30 days to 59 days, 60 days to 89 days, and “90+” days, the documents show all zeros.

That means: No late payments. The loan is, technically, current. The credit bureaus are following the letter of the law.

What some lawmakers may have overlooked, when passing the CARES Act, is that pesky comments section.

12/23/2019

Greetings,

The Tax Cuts and Jobs Act of 2017 increased the benefits of 529 savings plans. Previously, the plans could be used to pay only for post-secondary school expenses.

Did you know that under the new law, 529 plans also can be used to pay for up to $10,000 of tuition annually for Kindergarten through Grade 12? The $10,000 is per student, not per account.

As your outsourced accounting partner, Abrams Financial wants to make your life painless and financially safe. We reduce risk in your personal life and your business so that you can rest easy.

Contact us today at 301-965-0990 to maximize your child's educational future.

Have a blessed holiday!

12/10/2019

As the year winds to a close, you have the opportunity to look at your tax situation to identify tax savings or deferral options that may you help decrease your tax liability. Here is a summary of various tax law provisions and related, year-end tax planning tips.

Itemized deductions. Under the Tax Cuts and Jobs Act (TCJA), the standard deduction doubled beginning in 2018 ($24,400 for joint filers in 2019), which drastically reduces the number of taxpayers who itemize deductions on Schedule A. With this newer, elevated threshold, taxpayers may consider bunching their deductions every other year to produce a higher deduction over a two-year period. In other words, taxpayers could prepay some deductible expenses, such as state estimates, before year-end, or defer and pay after year-end.

Property taxes. Under the TJCA, the deduction for state and local taxes is now capped at $10,000. This is something to take this into account as you help clients plan on paying expenses and deductions. When prepaying property taxes, remember that they are only deductible in the current year if the tax is assessed by the governing body in the same year; otherwise they are deductible in the following year.

Charitable contributions. If you’re age 70½ or older and hold an IRA account, clients may be able to benefit by making a qualified charitable distribution to possibly reduce their above-the-line income. In addition, with a donor-advised fund, the taxpayer receives an immediate tax deduction and recommends grants from the fund over time.

Retirement contributions. Planning for retirement typically makes financial sense – and there are a variety of plans available to individuals that allow a tax-favored way to save for retirement. It’s smart to consult with a financial planner before deciding on a plan that best suits the individual. Lower income taxpayers may be eligible for the Retirement Savings Contribution Credit, or saver’s credit.

Two types of plans for individuals include:

Elective deferrals [401(k) type plans]: Contributions can be deducted and the earnings on the contributions grow tax free until the money is distributed from the plan. Sometimes, the employer may provide matching funds. A designated Roth option allows the taxpayer to pay tax on contributions, but distributions are fully tax-free. Help your clients boost pre-tax contributions prior to year-end to reduce their income.
IRA plans: Contributions to traditional IRAs are deductible, and the earnings grow tax free until the money is distributed. Contributions to Roth IRAs are not deductible, but the earnings and distributions are excluded from income tax. Contributions to these retirement plans can be made up until the due date of the tax return.

09/11/2019

Friends,

September is Life Insurance Month. Here are some Common Misconceptions About Insurance.

I’m young and healthy. I don’t need life insurance.

Fact:
Adverse changes in health can happen in aninstant. Buying life insurance while you are young and healthy generally ensures premium rates are at their cheapest and locks those
rates in for decades.

I have life insurance through my place of employment. I don’t need an individual policy.

Fact:
Group insurance through an employer may not be enough to adequately cover everything you want to have taken care of. And, what happens when you leave, or lose your job? Does your coverage follow you?

A stay-at-home parent doesn’t need to have an individual life
insurance policy.

Fact:
A stay-at-home parent makes a substantial contribution to the household, even if no paycheck is coming in, due to the savings your family may experience for out-of-pocket costs
like childcare outside the home or housekeeping services. Life insurance can help cover these, and more, in the event of an unexpected loss.

Your home is your biggest asset.

Fact:
You likely have homeowners insurance, but
YOU are the biggest asset to those you love.
Insure yourself!

Take advantage of our free insurance review. Just give us a call to set up an appointment.

All the Best

08/22/2019

Want to Live Interest Free?

Let me ask you a few questions,

Are you 100% sure your're going to have a great retirement or do you have some doubt??

Do you have the monthly cash flow to reduce or eliminate your current and long term debts such as:

Credit cards
Auto loans
Student loans
Medical bills
IRS tax liabilities
1st and 2nd mortgages

Not sure?

If we could show you how to get out of debt in 9 years or less, including you mortgage, without spending any addtional money than you are spending right now would that change
your financial picture?

If so, please view the attached 2 miniute video "Your Family Bank". https://vimeo.com/353593632

After viewing the please contact us for more detail and or a free analysis.

This is "Meet Mark" by Your Family Bank on Vimeo, the home for high quality videos and the people who love them.

03/15/2019

The popular “Where’s My Refund” feature on the IRS website allows you to see the status of your refund after filing your income tax return.

What you should know
Refunds of e-filed returns usually take 10 to 21 days to process. Paper returns take longer than e-filed returns. The IRS states that 90 percent of refunds are processed within this 21-day time period.
Original refund processing projections can change. This can be due to processing backlogs, or errors in your tax return.
Sometimes a delay is a good thing. The IRS acknowledges there is a huge increase in identity fraud as thieves try to steal tax withholdings. The IRS is using their data match programs to catch as much of this illegal activity as possible. Because of this, if the IRS is suspicious there is fraudulent activity, they will hold up processing your refund.
No shutdown delay. The recent government shutdown did delay many IRS activities, but refunds are expected to be issued within the normal timeframe.

Checking your refund status
In the meantime, if you wish to check on the status of your refund this is what you should know.

Go to: www.irs.gov/refunds and click on "Check My Refund Status

Information about refunds associated with filing taxes. Status of a return is usually available within 24 hours after the IRS has received an e-filed return or 4 weeks after a paper return received by mail.