Economics 101: From Wine Trails to Trade Balance - A Beginner's Guide to GDP
Welcome back, Wine and Dime listeners! In this episode, we're popping open a bottle of something special as we continue our journey through Economics 101. But before we dive into the intricacies of GDP and the trade balance, let's take a moment to savor the flavors of Michigan's wine industry. Yes, you heard me right - Michigan! From Cabernet Franc to Riesling, Michigan's wineries are producing over 3 million gallons of wine each year. And with over 200 commercial wineries in the state, there's plenty to explore on our tasting tour. But don't worry, we'll make sure to keep our glasses full as we also dive into the ins and outs of GDP, consumer spending, investment, government spending, and net exports. So sit back, pour yourself a glass of your favorite vintage, and join us as we explore the fascinating world of Economics 101.
What you will learn:
Recap of the importance of the Fed funds rate and understanding economic indicators
What is GDP and how it is measured
The components of GDP: consumer spending, investment spending, government spending, and the trade balance
The significance of the trade balance and the concept of a trade surplus
Overview of Michigan's wine industry and the variety of grapes grown in the region
The difference between net exports and total exports and imports
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
Outline:
Introduction: Recap of the first two episodes on the Fed funds rate and understanding economic indicators
Understanding GDP: Definition of GDP as the total value of finished goods and services produced within a country's borders
Discussion of the different ways GDP is reported (nominal, real, and PPP)
Explanation of the components of GDP: consumer spending, investment spending, government spending, and the trade balance
Components of GDP: Breakdown of the overall percentages of GDP: consumer spending (68%), investment spending (18%), government spending (18%), and net exports (-3%)
Explanation of each component: consumption, investment, government spending, and net exports
Definition of a trade surplus and how it measures a country's positive trade balance
Conclusion: Preview of the next episode on CPI and unemployment
Wine Recommendations:
The Michigan wine scene is full of surprises, and we've got the inside scoop on some of the most interesting facts:
Michigan wine refers to any wine made within the state's borders, and with over 200 commercial wineries producing 3 million US gallons of wine, there's plenty to explore.
European grape varieties such as Cabernet Franc, Chardonnay, Gewürztraminer, Dornfelder, Pinot Noir, Merlot, Syrah, Pinot Gris and Riesling are grown in the region, making for a diverse and delicious selection of wines.
The wine industry in Michigan has been growing rapidly, with 3375 acres under wine grape cultivation as of 2020, up from 112 operating wineries in 2007.
Michigan's unique climate and geography, with its proximity to the Great Lakes, provide the perfect conditions for grape growing, resulting in high-quality wines that are winning awards and gaining recognition around the world.
If you're planning a trip to Michigan to explore its wine scene, make sure to check out the wine trails, which offer a fun and educational way to experience the region's wineries and tasting rooms.
Whether you're a seasoned wine connoisseur or just starting to explore the world of wine, Michigan's wine scene is definitely worth a visit!
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Economics 101: Decoding Leading Economic Indicators and Recession Risks
Welcome to another fun episode of Wine and Dime with Amy Irvine, where we chat about money matters while enjoying some fantastic wine. In today's episode, we'll explore the world of economic indicators, making it easy to understand for everyone. And what better way to learn than with a tasty glass of Airlie Winery's Rosé of Pinot Noir by our side? So, grab your favorite wine glass and join us as we dive into the world of finance with a touch of Oregon's finest wine. Get ready to learn, laugh, and sip with us. Cheers!
What You Will Learn:
Economic terms and their impact on everyday life
Understanding leading economic indicators (LEIs) and how they signal a recession
The role of the Institute for Supply Management (ISM) in tracking economic activity
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
Understanding Economic Indicators:
The importance of LEIs and how they help predict a recession
Average weekly hours in manufacturing
Average weekly initial claims for unemployment insurance
Manufacturers' new orders for consumer goods and materials
Manufacturers' new orders for non-defense capital goods (excluding aircraft orders)
Building permits for new private housing units
S&P 500 leading credit index
Interest rate spreads
Average consumer expectations for business conditions
Institute for Supply Management (ISM) activity growth manufacturing index: composite of new orders, production, employment, supplier deliveries, and inventories
Non-manufacturing index: composite of business activity, new orders, employment, and supplier deliveries
Wine Recommendation Highlight:
Sipping on Airlie Winery's Rosé of Pinot Noir
Amy shares her love for Airlie Winery's Rosé of Pinot Noir, a refreshing and spicy wine that she enjoyed during her visit to Oregon's Willamette Valley. This delightful wine helped her get through the 2023 tax season, making it a personal favorite.
Featured Wine:
Airlie Winery's Rosé of Pinot Noir: A refreshing and spicy Rosé perfect for wine enthusiasts looking for something different.
For more information on Airlie Winery and their range of wines, visit their website or check them out when you're in the Oregon Willamette Valley area. And remember to share your favorite wine recommendations with us on Facebook and Instagram @rootedpg. Cheers!
Helpful Links:
Rooted Planning Group: Learn more about the financial planning services offered by the episode's sponsor, Rooted Planning Group - www.rootedpg.com
Airlie Winery: Discover Airlie Winery's Rosé of Pinot Noir and their other wines - www.airliewinery.com
National Bureau of Economic Research (NBER): Find information on leading economic indicators and other economic data - www.nber.org
Institute for Supply Management (ISM): Learn more about the ISM indices and economic activity - www.ismworld.org
Wine and Dime Facebook: Follow Wine and Dime on Facebook for the latest news and updates - www.facebook.com/rootedpg
Wine and Dime Instagram: Stay connected with Wine and Dime on Instagram - www.instagram.com/rootedpg
Explore these helpful links to learn more about the topics discussed in this episode and stay informed about economic indicators, financial planning, and, of course, great wine recommendations!
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Economics 101: Understanding the Importance of the Fed Funds Rate
Hi there, Wine and Dime listeners! Amy Irvine here, and I want to start a series on economics. I've realized that during some of my presentations, not everyone may be familiar with some of the terms I use. So, over the next six weeks, I'll be discussing various economic topics that may be new to you but are important to understand. This week, let's start with understanding the importance of the Fed Funds Rate.
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
Understanding the Importance of the Fed Funds Rate
The Fed Funds Rate has been making headlines over the past year and a half, with projections showing interest rate hikes to slow inflation. Here's what you need to know:
What is the Fed Funds Rate? The Fed Funds Rate is the interest rate at which banks lend to each other overnight. It's set by the Federal Reserve to influence economic activity.
Why is it important? The Fed Funds Rate affects everything from the yield on your savings account to the price of goods and services.
How does it affect you? Changes in the Fed Funds Rate can impact your borrowing costs, your investments, and even your job opportunities.
Other Key Terms to Know
Yield Curve: The yield curve is the difference between short-term and long-term interest rates. An inverted yield curve, where short-term rates are higher than long-term rates, can signal an economic slowdown.
APR vs. APY: APR (annual percentage rate) is the interest rate you pay on a loan, while APY (annual percentage yield) is the interest rate you earn on an investment. Make sure you know the difference!
Basis Points: A fancy term for percentage points. 100 basis points equal 1%.
My Exploration of Scottish Wine
As many of you know, I'm planning a trip to Scotland in 2024, and I've started to get educated about the country. Believe it or not, Scotland has some wineries! While they don't produce a lot of wine, I came across a winery called Chateau Largo during my research. I'm always up for trying new things, so I'm challenging you to find a Scottish wine that you enjoy. If you do, please report back to me!
Where to Learn More
If you want to learn more about the Fed Funds Rate and other economic terms, check out the links below:
That's all for now. Stay tuned for more economic topics in the coming weeks. Cheers!
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Wine and Dime Your Way Through Small Business Tax Planning
Welcome to Wine and Dime, the podcast that uncorks the mysteries of personal finance! Today, we're diving into the nitty-gritty of business expenses. As a solopreneur or small business owner, you want to maximize your deductions and minimize your tax bill, right? Well, buckle up, because our guest experts, Kate Welker and Amy Irvine, are ready to help you do just that. From office supplies to travel expenses, from depreciation to employee benefits, they'll guide you through the maze of IRS rules and regulations. So, grab a glass of your favorite vintage, and get ready to toast to your financial success!
Overall, this episode of the Wine and Dime podcast offers a wealth of information for anyone trying to navigate the world of business expenses. Whether you're a seasoned business owner or just starting out, you're sure to learn something new and valuable. So, pour yourself a glass of your favorite wine and tune in to this informative and engaging episode!
What you will learn:
The importance of keeping accurate records of business expenses for tax purposes
The difference between deductible and non-deductible expenses, and how to determine which category an expense falls under
How to calculate depreciation on assets and determine when to list them separately on tax returns
The nuances of travel and meal expenses, including what is deductible and what is not
The importance of paying both the employer and employee side of Medicare and Social Security taxes as a self-employed individual
The benefits of solo 401k plans and other employee benefit programs for solo entrepreneurs
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
The Wine - 2015 WALLA WALLA VALLEY SYRAH DESSERT
If you're a fan of dessert wines, you won't want to miss out on the 2015 WALLA WALLA VALLEY SYRAH DESSERT from Pudding River Winery. This rich and complex wine offers flavors of black cherry, chocolate, and spice, with a smooth finish that lingers on the palate. It's the perfect wine to enjoy after a meal or to pair with a decadent chocolate dessert. Visit Pudding River Winery's website to learn more about this delicious wine and how to get your hands on a bottle.
Useful Links
IRS Schedule C: https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
IRS Publication 535 (Business Expenses): https://www.irs.gov/forms-pubs/about-publication-535
IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses): https://www.irs.gov/forms-pubs/about-publication-463
IRS Publication 587 (Business Use of Your Home): https://www.irs.gov/forms-pubs/about-publication-587
Solo 401k: https://www.irs.gov/retirement-plans/one-participant-401k-plans
Self-employment taxes: https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
Pudding River Winery: Pudding River Wine Cellars Boutique-styled wines from Oregon
WALLA WALLA VALLEY SYRAH DESSERT: Pudding River Wine Cellars 2015 Walla Walla Valley Syrah Dessert (Port Style)
Rooted Planning Group: Rooted Planning Group (rootedpg.com)
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Bank Failures and Insurance Limits
Bank Failures and Insurance Limits
Welcome to the Wine and Dime podcast, where financial topics are uncorked and discussed like a fine bottle of wine.
In today's episode, Amy talks about the recent bank failures and the insurance limits that protect your funds. Before diving into the topic, Amy mentions her wine recommendation for the day - a 2019 Bourbon Barrel Cab from Berklee Winery in Lubbock, Texas. Moving on to the topic, Amy explains the different types of insurances available, such as FDIC and NCUA, and the limits for each. She also highlights the differences between the types of accounts that are covered and not covered. Investments made in stocks, bonds, mutual funds, crypto assets, and annuities are not covered under FDIC insurance. Amy provides a useful link to help listeners check if their funds exceed the FDIC limits.
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
What you'll learn:
Recent bank failures have caused concerns about the safety of deposited funds
Different types of insurance available: SIPC, FDIC and NCUA
FDIC insurance covers checking accounts, savings accounts, CDs, money market deposit accounts, and other official checks issued by a bank
FDIC insurance does not cover stock investments, bond investments, mutual funds, any kind of crypto assets, life insurance policies, annuities, any kind of municipal securities, safe deposit boxes or their contents, and then U.S. Treasury bills or bonds or notes
The standard insurance amount is $250,000 per depositor
Wine Recommended: 2019 Bourbon Barrel Cab from Berklee Winery
The 2019 Bourbon Barrel Cab from Berklee Winery in Lubbock, Texas is a wine that is sure to please any wine enthusiast. This wine is a Cabernet Sauvignon that has been aged in bourbon barrels, giving it a unique flavor profile that is sure to impress.
The wine is dark and rich, with aromas of blackberry, black cherry, vanilla, and oak. On the palate, the wine is full-bodied with flavors of dark fruit, vanilla, and a hint of caramel. The bourbon barrel aging adds a subtle smokiness and complexity to the wine, making it a great pairing for rich, hearty dishes like grilled steak or roasted lamb.
Berklee Winery is located in Lubbock, Texas, which is known for its hot and dry climate. Despite this challenging environment, Berklee Winery has managed to produce some exceptional wines using sustainable farming practices and a commitment to quality.
Overall, the 2019 Bourbon Barrel Cab from Berklee Winery is a fantastic choice for anyone looking to try something new and exciting in the world of wine. Whether you're a seasoned wine drinker or a beginner, this wine is sure to impress with its unique flavor profile and exceptional quality.
Helpful Links:
Rooted Planning Group: www.rootedpg.com
Berklee Hill Vineyards: www.berkleyhillvineyards.com
FDIC Insurance: www.fdic.gov/deposit/deposits
FDIC Insurance Estimator: www.fdic.gov/edie/
NCUA share insurance: https://www.ncua.gov/insured-funds
SIPC coverage: https://www.sipc.org/for-investors/what-sipc-protects
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Pairing Schedule 3 with the Perfect Wine: A Tax Season Guide
In this episode of the Wine and Dime podcast, host Amy Irvine discusses Schedule 3 of the 1040 tax form, which covers additional credits and payments. Schedule 3 of the 1040 tax form is like the third glass of wine - it's necessary to finish, but you're not sure if it's worth the headache tomorrow.
Kidding aside,
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
Here are some key points from the episode:
Schedule 3 is where you might get some additional credits and payments after your taxes have been calculated.
The first part of Schedule 3 is for non-refundable credits. If you don't pay enough in taxes, these credits will offset any amount of liability or tax computation that you might owe.
You can also get a foreign tax credit if you paid taxes on international funds held within your brokerage account.
The credit for child and dependent care expenses can provide some benefit based on your income level and the amount paid for childcare, with the maximum credit being $3,000 for one child and $6,000 for two or more qualifying children.
Education credits such as the American Opportunity Credit and the Lifetime Learning Credit are available for those who have college expenses.
If you are saving for retirement, you may be eligible for a retirement credit.
Winery Recommendation:
Pudding River Winery is a family-owned and operated vineyard located in Salem, Oregon, that has been producing award-winning wines since 2003. The winery's name is inspired by the nearby Pudding River, which flows through the beautiful Willamette Valley. The winery's mission is to create unique and high-quality wines that reflect the distinct terroir of their vineyard.
Pudding River Winery's vineyard spans over 22 acres, and it is planted with several grape varietals, including Pinot Noir, Chardonnay, Pinot Gris, Riesling, and Syrah. The winery uses sustainable farming practices, such as composting and cover cropping, to ensure that their grapes are healthy and vibrant. Their wines are handcrafted in small batches, using traditional winemaking techniques and minimal intervention, to showcase the natural flavors and aromas of the grapes.
The winery's tasting room is a charming and cozy space, decorated with warm wood accents and beautiful artwork. Visitors can taste a selection of the winery's current releases, including their Pinot Noir, Chardonnay, Pinot Gris, and Riesling. Pudding River Winery also offers guided tours of their vineyard and winery, where visitors can learn about their winemaking process and the history of the winery.
If you are interested in trying Pudding River Winery's wines, you can purchase them directly from their website or visit their tasting room in Salem. Some of their wines are also available for purchase at local wine shops and restaurants in Oregon. Here are some additional links to explore their wine selection:
Pudding River Winery's online store: https://puddingriver.orderport.net/wines/Current-Releases
Wine Enthusiast's review of Pudding River Winery's 2018 Pinot Noir: https://www.winemag.com/buying-guide/pudding-river-2018-pinot-noir-willamette-valley/
Pudding River Winery's Instagram page: https://www.instagram.com/puddingriverwine/
If you want to learn more about the topics discussed in this episode, here are some helpful resources:
The IRS website has information on Schedule 3, including the instructions for completing the form: https://www.irs.gov/forms-pubs/about-schedule-3-form-1040
The IRS also has a page dedicated to foreign tax credits: https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit
The credit for child and dependent care expenses is explained on this page of the IRS website: https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit
The American Opportunity Credit and Lifetime Learning Credit are explained on this page of the IRS website: https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc
The IRS website has information on the Retirement Savings Contributions Credit (also known as the Saver's Credit): https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Uncorking Schedule 2: Sipping on Taxes with Amy Irvine
Amy Irvine of Wine and Dime is back with another episode, and this time she's uncorking the secrets of Schedule 2 from the 1040 tax document. It may sound daunting, but Amy breaks it down like a fine wine, explaining the different types of taxes and penalties that can show up on Schedule 2.
But what's a tax episode without a wine recommendation? Amy suggests pairing your tax prep with a glass of Pudding River Winery's Willamette Valley Chardonnay. This "delightful" wine is the perfect complement to your financial musings, with its notes of apple and pear and a smooth finish that will leave you feeling refreshed and ready to tackle your taxes.
So next time you're faced with the daunting task of Schedule 2, remember to take it one sip at a time and pair it with a delicious glass of wine. Cheers to financial wellness and a well-stocked wine rack!
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
Main Discussion: Amy discusses Schedule 2 from the 1040 tax document, which includes additional taxes and penalties that a taxpayer may owe. She explains that Schedule 2 is used to report alternative minimum tax, excess advance premium tax credit repayment, additional taxes on IRA or other qualified retirement plans, and other taxes. Amy provides a helpful overview of each of these taxes and explains how they may apply to individual taxpayers.
In conclusion, Amy highlights the importance of understanding Schedule 2 and how it impacts your taxes. And of course, they recommend enjoying a glass of Pudding River Winery's Willamette Valley Chardonnay while reviewing your taxes.
Wine Recommendation: On this episode, Amy recommends a 2015 Willamette Valley Chardonnay from Pudding River Winery. She describes the wine as "delightful" with notes of apple and pear, a touch of vanilla, and a smooth finish. Pudding River Winery is a small, family-owned vineyard located in Salem, Oregon. Visit their website at puddingriver.com to learn more about their wines and vineyard.
Links that you might find helpful:
Schedule 2 of the 1040 tax document - The IRS website provides information on Schedule 2, including the different types of taxes and penalties that are reported on it: https://www.irs.gov/forms-pubs/about-schedule-2-form-1040
Alternative Minimum Tax (AMT) - The Tax Foundation has an article that provides a comprehensive overview of AMT, including how it works and who may be subject to it: https://taxfoundation.org/alternative-minimum-tax/
Excess Advance Premium Tax Credit Repayment - The healthcare.gov website provides information on this tax, including how it is calculated and who may be subject to it: https://www.healthcare.gov/glossary/excess-advance-premium-tax-credit-repayment/
Additional Taxes on IRA or other Qualified Retirement Plans - The IRS website provides information on these taxes, including the different types of retirement plans that may be subject to them: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
Pudding River Winery - The winery's website provides information on their wines, vineyard, and tasting room: https://puddingriver.com/
Rooted Planning Group - The financial planning group's website provides information on their services, team, and approach to financial planning: https://www.rootedpg.com/
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
Uncorking Your Income: Making Adjustments on Schedule 1
In this episode of Wine and Dime, Amy Irvine is back to talk about the wonderful and illustrious 1040! Amy dives into Schedule 1, which is actually an extension of the front side of the 1040. Schedule 1 is all about additional income and adjustments to income.
What you'll learn:
Different income items included in Schedule 1
Form 4797 and Form 2550
Types of income need to be reported on Schedule 1
Pudding River Pinot Noir for International Women's Day
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
I. Additional Income Items
Taxable refunds, credits, and offsets to state and local income taxes
Alimony payments received (before or after 2019)
Business income or loss (covered in more detail in part five)
Other gains or losses (reported on Form 4797)
Rental income (reported on Schedule E)
Farm income or loss (reported on Schedule F)
Unemployment compensation
Any other income received (e.g. net operating loss, gambling, foreign earned income exclusion)
Income from other resources (various forms may be required)
Alaska permanent fund dividends
Jury duty pay
Prizes or awards
II. Adjustments to Income
Educator expenses
Certain business expenses of reservists, performing artists, and fee-basis government officials.
Health savings account (HSA) contributions
Moving expenses
Deductible part of self-employment tax
Self-employed SEP, SIMPLE, and qualified plans
Self-employed health insurance deduction
Penalty on early withdrawal of savings
Alimony paid (before or after 2019)
IRA contributions
Student loan interest deduction
Tuition and fees deduction
Conclusion:
Schedule 1 is an important part of the 1040 tax form that covers additional income and adjustments to income.
By understanding what needs to be reported and deducted, taxpayers can ensure they are accurately completing their tax return.
Pudding River Winery's Pinot Noir:
From the Willamette Valley in Oregon, Pudding River Winery's Pinot Noir is a complex and elegant wine with a deep ruby color and aromas of cherry, raspberry, and vanilla.
On the palate, it has a smooth and silky texture with flavors of red fruit, spice, and a hint of earthiness.
This wine pairs well with grilled salmon, roasted duck, or mushroom risotto.
It has received high ratings from wine critics and is a great choice for those looking to explore the world of Oregon Pinot Noir.
Links discussed in this episode:
The IRS website provides detailed instructions on how to fill out Schedule 1, including a line-by-line breakdown: https://www.irs.gov/forms-pubs/about-schedule-1-form-1040
Pudding River Winery: https://www.puddingriverwinecellars.com/
Oregon Wine Board: https://industry.oregonwine.org/
Willamette Valley: https://willamettewines.com/
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help. Visit www.rootedpg.com to learn more.
Demystifying Page 1 of the 1040 Tax Form
Summary: In this episode, we break down page 1 of the 1040 tax form and explain each section in plain language. We cover everything from personal information to income sources, deductions, and tax credits, so you can better understand how to fill out this important document.
Don't dread tax season - sip on a glass of Pudding River Wine Cellars Walla Walla Valley Malbec while filling out your 1040 form. You might even find it enjoyable!
Outline:
Introduction
Personal Information: The first section of the 1040 form requires you to provide your name, address, and Social Security number. You also need to indicate your filing status, which can be single, married filing jointly, married filing separately, head of household, or qualifying widow(er).
Income Sources: The next section asks you to report your income, which can come from various sources such as wages, salaries, tips, interest, dividends, and capital gains. You also need to include any taxable refunds, unemployment compensation, and Social Security benefits you received during the year.
Adjustments to Income: This section allows you to reduce your taxable income by reporting certain deductions such as contributions to a traditional IRA or student loan interest. These deductions are sometimes called "above-the-line" deductions because you can take them even if you don't itemize your deductions.
Deductions: The next section asks you to report your itemized deductions, which can include things like mortgage interest, state and local taxes, charitable contributions, and medical expenses. You can choose to take the standard deduction instead of itemizing if it results in a lower tax liability.
Tax Credits: This section allows you to reduce your tax liability by claiming certain credits such as the Child Tax Credit, Earned Income Credit, or American Opportunity Credit.
Calculating Your Tax Liability: The final section of page 1 asks you to calculate your tax liability based on your income, deductions, and credits. You can use the tax tables provided by the IRS to determine your tax liability based on your filing status and taxable income.
Conclusion and Final Thoughts
Winery and Wine Recommendations:
If you're looking for a delicious wine to enjoy while working on your taxes, we recommend the Pudding River Wine Cellars Walla Walla Valley Malbec. This wine boasts bold and juicy flavors of dark fruit and chocolate, with a smooth finish. You can purchase this wine directly from the winery's website at https://puddingriver.com/our_wines/2014-w-v-melbec/
Links/Resources Mentioned:
1040 tax form: https://www.irs.gov/forms-pubs/about-form-1040
IRS website: https://www.irs.gov/
Pudding River Wine Cellars Walla Walla Valley Malbec: https://puddingriver.com/our_wines/2014-w-v-melbec/
Rooted Planning Group: https://www.rootedpg.com/
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help. Visit www.rootedpg.com to learn more.
What Amy Learned when she attended a two day conferenced sponsored by LLIS - Part 2
Thinking about adding disability insurance or "Risk Transfer" to your financial plan? Listen to this episode of the Wine and Dime Podcast by Amy Irvine as she shares what she learned at a recent conference sponsored by LLIS. She will also share her wine pick for this month as she starts her "around the world" with her tastebuds wine tour this year.
Prejean Winery, https://prejeanwinery.com/ - Riesling or Gold Finch Riesling - check out the story of this wine, talk about a life event!
WHAT IS LLIS YOU MAY BE ASKING?
AS AN EXTENSION OF FEE-ONLY FINANCIAL ADVISOR FIRMS, WE WORK WITH ADVISORS AND THEIR CLIENTS TO FIND THE RIGHT SOLUTIONS FOR:
Term Life Insurance
Permanent Life Insurance
Universal Life; Individual and Survivorship
Variable Universal Life (VUL)
Guaranteed Universal Life (GUL); Individual and Survivorship
Disability Insurance
Critical Care Insurance
Long Term Care Insurance
Annuities
Immediate
Fixed
Variable
Hybrid Life/LTCi
Hybrid Annuity/LTCi
Life Settlements
Thanks for listening and be sure to like, rate, subscribe and share.
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
THIS EPISODE WAS PRESENTED BY
AMY IRVINE
ROOTED PLANNING GROUP
10 EAST MARKET STREET
CORNING NY 14830
EMAIL: AMY@ROOTEDPG.COM
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