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Dec 24, 2017
Acorn All-American
Public Service Announcement: How to determine if you should double tithing.
What I mean by double is paying tithing, missionary or fast offerings that you would have paid in 2018 before the end of the year...

I feel a sense of urgency to help people understand. There is a unique opportunity that exists the next few days...Go grab your 2016 Federal Tax Return Schedule A for the exercise below. Note that I am using a married filing jointly example, but there is also an opportunity for singles here potentially - the numbers are just smaller.

1. If you don't have a schedule A and don't itemize, you are most likely done, but there still might be an opportunity. Also, if you can't afford to pay double on your tithing this year (e.g., pay 2018 before year end) or any part of 2018, you can probably stop reading.

2. If you have any meaningful amounts on lines 20, 27 or 28 of schedule A, you need to talk this over with your tax specialist. This simple example isn't going to work for you. I might mention that if you feel confused anything below, you might want to discuss with your tax guy to make sure you understand what you are doing.

2. Take a look at line 9, "Taxes you Paid" If it is more than $10,000, you will only use $10,000 for this example. If you don't have a schedule A, you would add your income taxes paid (from your w-2 or your last paycheck stub) and your property taxes paid to get your number.

3. Add line 15 to line 9 (line 9 can't be more than $10K). If you don't itemize, you would use your mortgage interest paid from the 1099-I your mortgage company sent you last year. If the sum of the two numbers (taxes paid and mortgage interest paid) is significantly below $24,000, but near or above $12,700, you have an opportunity and should give this some careful consideration.

Here is what you need to consider:

1. Everything you pay this year over $12,700 will be deductible. Next year, only amounts over $24,000 will reduce your taxable income. So for example, if you have $30K in deductions because you paid extra this year, and next year you only have $14,000, you benefit this year by the extra you pay (most likely against higher tax rates) and next year you get a "free" bonus for the difference of the standard deduction of $24,000 versus the $14,000 you actually have (and you don't have to fill out a schedule A - you won't itemize next year) a $10K reduction in taxable income over two years (the $10K is a guess without specifics). If your marginal tax rate is 28% and your state rate is 5%, you just saved $3,300 in taxes over two years.

2. As an alternative, you might pay double tithing in 2018 (for 2018 and 2019) for the same benefit. You need to figure out the math.

As always, happy to help. It is a GREAT time to take some profits and make some donations in kind while you are at it. I have some very large gains as do many of you. The last few years have been a great time to be an investor and now you can harvest those gains tax free!!!

I wish we could sticky this for the next several days so people have the opportunity to take advantage of this. If not I will probably repost this over the next couple of days - too much opportunity to not jump on my soap box to help people save some money.

Help spread the word to our tithe paying cougar brothers...



"We will fight, day or night. Rain or snow. There is no mention of fair weather." By a CB Poster but I can't remember who...

The Mighty Acorns was my high school mascot?!

Let's get to a 16 team football playoff. Bigger than March Madness.

Originally posted on Dec 24, 2017 at 11:10:27am
Message modified by Acorn on Dec 24, 2017 at 11:11:14am
Message modified by Acorn on Dec 24, 2017 at 11:13:04am
Message modified by Acorn on Dec 24, 2017 at 11:13:26am
Message modified by Acorn on Dec 24, 2017 at 11:15:09am
Message modified by Acorn on Dec 24, 2017 at 11:16:49am
Message modified by Acorn on Dec 24, 2017 at 11:18:23am
Message modified by Acorn on Dec 24, 2017 at 11:19:32am
Message modified by Acorn on Dec 24, 2017 at 11:19:57am
Message modified by Acorn on Dec 24, 2017 at 11:51:56am
Message modified by Acorn on Dec 24, 2017 at 2:08:58pm
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