March Maintenance

March is synonymous with basketball brackets (join ATC’s by March 18), daylight savings time, daffodils, and Spring.  Maintenance checks-ups are often limited to dental, health, house, and vehicles.  This year, add a finance check-up to your calendar.  March is a great time to review your financial wellness and prepare for taxes.   

Budget. Regardless of your income and total net worth, a budget will help you see if your spending is parallel with your goals and values.  

  • Bank and credit card statements usually provide an annual summary by category, such as entertainment, restaurants, groceries, gas, and travel.  

  • Budgeting apps and tools are available online, such as mint.com. 

Expenses. Once you have a budget, keep track of your expenses.  Are there expenses you can consider reducing, eliminating, or consolidating?  Many expenses are on auto-renewal and never thought of twice. 

Here are a few expenses to re-evaluate:

  • Memberships – gyms, studios, wine clubs…

  • Services – entertainment, food, music streaming services, professional, storage…

  • Insurance – Request quotes to compare.

  • TV or internet bills – Review current offers. 

  • Credit Cards – Can be used to accumulate points and build credit.  Use like a debit card and spend based on your bank account balance, not your credit limit.

Anticipate receiving a tax refund?

  • Check your emergency savings fund.  Can you cover at least 3 to 6 months of expenses?

  • Do you have debt with high interest rates?  Pay-off/down credit cards or student loans. 

  • Start saving for a larger goal: vacation, a new vehicle, home improvements, or big event.

  • Donate to your favorite public charity.

Additional Tax Benefits. For non-itemizing taxpayers in 2020 and 2021:

  • In 2020, donations up to $300 are allowed above the (AGI) line per filing. 

  • In 2021, up to $300 (per filer)/ $600 (joint filers) will be allowed in addition to the standard deduction.

    • Start an investment account or 529 Plan. Time is of the essence!  Contributing $1,000 per year for 20 years accumulates to:

Screenshot 2021-03-15 160426.jpg

Anticipate owing Oregon/Federal taxes?  

  • Maximize your pre-tax retirement contributions to your employer plan or IRA. 

  • If a High Deductible Health Plan (HDHP) is an option, contribute to a triple-net tax-free Health Spending Account (HSA).

    • $3,600/individual or $7,200/family,

    • Additional $1,000 for 55-to-65 year-olds.   

  •  If you will owe Oregon State Income Tax, consider updating your 2021 withholdings form.            

Oregon Department of Revenue recommends if: 

  • You filed a federal Form W-4 with your employer after December 31, 2017 and you didn’t file Form OR-W-4 or specify a different number of allowances for Oregon.

  • You weren’t satisfied with your prior year Oregon tax-to-pay or refund amount.

  • You’ve had a recent personal or financial change that may affect your tax situation, such as a change in your income, filing status, or number of dependents.

We’re here to help.  These are just a few financial checkpoints to consider.  Contact our team at info@allentrust.com for assistance with budgeting, financial and tax planning, or investment management. 

Krystal C. Lee, MBA, CFP®