Municipal Bonds- Tax Free

Municipal Bond Interest

Most of the time, when you invest in bonds, you have to pay federal and state taxes on the income you receive from them. One exception is municipal bonds, issued by states and other government entities. Their income is generally tax-free on the federal level and also at the state and local level if you live in the state where the bonds were issued.14

This tax exemption applies whether you invest in individual municipal bonds or buy them through a municipal bond fund or ETF. Interest income from U.S. Treasury bills, notes, and bonds is subject to federal income tax but exempt from state and local income taxes.14

Internal Revenue Service. "Publication 4079, Tax-Exempt Governmental Bonds," Page 2.


Municipal bonds often pay less than other types of bonds. But, depending on your tax bracket, they may offer a better after-tax return than their taxable counterparts.

2024- 401k and IRA Limits

2024 Limits for 401K is $23,000

2024 Limits for IRA and Roth IRA contributions

$7,000 for those under 50 and $8,000 for those over 50 years of age

Income limitations for Roth have expanded to 146,000-161,000 for single, or head of household or 230,000-240,000 married filing joint

Max Out Retirement Accounts and Employee Benefits

Taxable income can be reduced for contributions to a 401(k)  or 403(b) plan. Those who are 50 can contribute a catchup provision.

Those who don’t have a retirement plan at work can get a tax break by contributing to IRA’s Taxpayers who do have workplace retirement plans (or whose spouses do) may be able to deduct some or all of their traditional IRA contribution from taxable income, depending on their income.10

The deduction for IRA contributions is phased out for adjusted gross incomes at different levels depending on whether they're claimed on a single taxpayer’s return, a joint return, or by a married individual filing separately. It takes into account any participation by a taxpayer in another plan. The IRS has detailed rules about whether and how much you can deduct.11


1099K Rules for 2023 and beyond


TAX TIP Regarding 1099-K Changes (Venmo, Paypal, Square, Zelle and any other cash app)

A lot more people will have to file a 1099-K in 2024, especially those who own a small business or have a side hustle.

Here’s how it’ll break down: You’ll receive a 1099-K form during tax season 2024 if you accept payments for goods or services over a third-party network (think Venmo, PayPal, Stripe, Square, Zelle and Cash App) that are more than $600, even if it’s just one transaction over $600

And be careful—with every new change, there’s bound to be hiccups. Remember, the IRS doesn’t tax personal gifts from friends or family or reimbursements for personal expenses. So, if you receive a 1099-K by mistake, you might want to cover your bases by contacting whichever third-party network sent it to you.

Education Credits

Lifetime learning credit (LLC)

You can claim the lifetime learning credit for tuition and similar expenses from undergraduate courses, in addition to graduate courses and professional degree courses. Unlike other education credits, the LLC also covers the cost of classes that help you learn or improve job skills. There’s no limit to how many years you can claim it. The LLC is only worth up to $2,000 per tax return and you must have at least $10,000 of expenses to receive the full credit. Your gross income must also be less than $80,000 if you’re a single filer, or $180,000 if you’re a joint filer to get the maximum credit.

10/6/2023 Tax Tip

Energy efficient home improvement credit

This credit is available for certain home improvements you made to your home in order to increase energy efficiency. If you’ve made home improvements like installing insulation to reduce heat loss, got a new furnace or heater, added an electric heat pump to heat water, upgraded a stove to burn biomass fuel to heat your home or water, or even redid your exterior windows or doors.

Appointments during COVID

The early bird gets the worm - and the best appointment times too!  The sooner you start, the sooner you can relax.

Virtual Appointments - 15 ZOOM Minutes

Relax and just drop off your tax documents and then Schedule an appointment.

Tracy will email you a ZOOM meeting link for your scheduled time. Tracy will start your taxes before the meeting so you can both focus on questions during the 15 minute virtual meeting. Your returns will be submitted after payment and signatures.

Appointments - In Person

COVID GUIDELINES: All are welcome to schedule in-person appointments while wearing masks. Areas will be sanitized between appointments. Prompt arrival is key for everyone’s safety.