How Federal, Legislative, and Administrative Changes Affect Your Finances

By a variety of measures, 2020 has been a tough year for many Americans. That is why it’s important to take a step back and consider what legislative changes and new administrative rules have been implemented to make this year a little easier. As you navigate this new landscape, you should utilize a personal financial strategist in West Palm Beach for guidance in your investment decisions and future retirement income strategy. 

Where can I find a Personal Financial Strategist West Palm Beach? 

The Effects of Legislative Changes  

How Does the Stimulus Relief Check Work? 

If you received a stimulus check last spring to help cope with the financial effects of the COVID-19 virus on your household, there’s something you should know. Those funds are technically an advance rebate of a special 2020 tax credit. Many taxpayers will be able to reconcile that rebate on their 2020 return to equal the tax credit allowed. However, there will be some for whom credits exceed their rebates and they can claim the balance as a refund, and others for whom their rebate exceeds their credits — although tax professionals and personal financial strategists in West Palm Beach do not believe those payments will have to be repaid.1 

Child Care  

According to a Care.com survey of parents with children younger than age 15, nearly three-quarters report that they intend to make major changes in their careers to accommodate the potential need for childcare this year. 2 Among them, 15% indicate they may leave the workforce altogether. As you plan, be aware that you may be eligible for paid leave to care for your children through a provision included in the Families First Coronavirus Response Act (FFCRA).  

Passed in March, this provision grants up two weeks (80 hours) of emergency paid sick leave at two-thirds pay (capped at $200 per day) for parents unable to work because of a need to care for a child under the age of 18 if their school or care provider is closed or unavailable due to the pandemic. If schools open with an intermittent schedule, parents may be able to take paid leave only on the days their children are at home.3 

In-Home Care and Medicaid Services 

In light of the number of people who need to need to stay home because they are either sick, quarantined for possible exposure to COVID-19, or at high risk if they do contract the virus, the Centers for Medicare and Medicaid Services has relaxed rules regarding in-home care and medical services.  

Specifically, nurse practitioners, clinical nurse specialists, and physician assistants can now provide home health services for Medicare and Medicaid beneficiaries — previously unavailable unless certified by a physician. They can now order, establish, and review a plan of care and certify eligibility for home health services.4 Be sure to ask your personal financial strategist in West Palm Beach about how this can fit in your financial pp 

Planning for Post-Retirement Care 

If you’re a business owner and planning for your own care needs in retirement, be aware that Sub-Chapter C Corporations can deduct long-term care (LTC) insurance premiums on behalf of employees, business owner spouses, or dependents. Selfemployed workers also may deduct 100% of LTC premiums up to certain age-based limits.5 Unfortunately, individual tax filers may deduct LTC premiums only if they itemize tax deductions and only to the extent those premiums exceed 7.5% of their adjusted gross income.6 Note that some states allow for limited deductions on state tax returns.7 

Changes to Immigration Rules  

Given the national controversy on immigration rules, one lesser-known change made this year is that the federal government has actually loosened restrictions for certain visas. Effective May 14, 2020, through May 15, 2023the Department of Homeland Security has removed certain limitations for employers to hire H-2B workers already residing in the U.S. to provide temporary labor or services essential to the food supply chain. This was in response to disruptions caused by the COVD-19 pandemic.8 

New Banking Regulations 

As for rule changes that affect the country’s financial health, the Federal Reserve announced in March that large banks have held up well in light of the strain caused by the recent economic decline. Moving forward, the central bank has mandated that large banks suspend share repurchases, cap dividend payments, and limit dividends to help preserve capital during the third quarter of 2020.9 

Where can I find a Personal Financial Strategist West Palm Beach?

Need Guidance on Changing Regulations from a Personal Financial Strategist in West Palm Beach?   

Rules, regulations, and federal laws are always shifting. To protect your financial future, your strategies need to be able to adapt to the constantly changing environment. At Legacy Financial Partners, we can offer sound advice and thoughtful guidance to help you navigate changes in fiscal regulation. Schedule a meeting today to learn about what we can do for you!   

 

Content prepared by Kara Stefan Communications. 

 

1 Joy Taylor and Rocky Mengle. Kiplinger. June 22, 2020. “Tax Changes and Key Amounts for the 2020 Tax Year.” https://www.kiplinger.com/slideshow/taxes/t055-s011-tax-changes-and-key-tax-amounts-for-2020/index.html. Sept. 8, 2020. 

2 Jennifer Liu. CNBCAug. 17, 2020. “Parents may qualify for paid leave, unemployment if schools are closed for the fall.” https://www.cnbc.com/2020/08/17/parents-may-qualify-for-paid-leave-unemployment-due-to-school-closure.htmlAccessed Sept. 8, 2020. 

3 Ibid. 

Center for Medicare & Medicaid ServicesApril 30, 2020. “Trump Administration Issues Second Round of Sweeping Changes to Support U.S. Healthcare System During COVID-19 Pandemic.” https://www.cms.gov/newsroom/press-releases/trump-administration-issues-second-round-sweeping-changes-support-us-healthcare-system-during-covidAccessed Sept. 8, 2020. 

5 LTC Partner2020. “2020 Long Term Care Insurance Tax Deduction.” https://www.longtermcareinsurancepartner.com/long-term-care-insurance/2020-long-term-care-insurance-tax-deductionAccessed Sept. 8, 2020.  

6 Internal Revenue Service. Sept. 20, 2020. “Topic No. 502 Medical and Dental Expenses.” https://www.irs.gov/taxtopics/tc502. Accessed Sept. 21, 2020.  

7 LTC Partner2020. “2020 Long Term Care Insurance Tax Deduction.” https://www.longtermcareinsurancepartner.com/long-term-care-insurance/2020-long-term-care-insurance-tax-deductionAccessed Sept. 8, 2020.  

8 Federal RegisterMay 14, 2020. “Temporary Changes to Requirements Affecting H-2B Nonimmigrants Due to the COVID-19 National Emergency.” https://www.federalregister.gov/documents/2020/05/14/2020-10486/temporary-changes-to-requirements-affecting-h-2b-nonimmigrants-due-to-the-covid-19-nationalAccessed Sept. 8, 2020.  

9 Federal ReserveJune 25, 2020. “Federal Reserve Board releases results of stress tests for 2020 and additional sensitivity analyses conducted in light of the coronavirus event.” https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200625c.htmAccessed Sept. 8, 2020.  

 

Our firm is not affiliated with or endorsed by the U.S. government or any governmental agency and does not provide tax or legal advice. 

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.   

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 

 

 9/20-1332723C 

Posted in

Digital Resource Blogger

Leave a Comment





Ready to Take The Next Step?

For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.

Or give us a call at 561.683.3000