Announcer:
It’s time now on KROS for Financial Focus, brought to you by NelsonCorp Wealth Management. The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Inc, a broker dealer, member FINRA SIPC. Investment advisor representative, Cambridge Investment Research Advisors Inc, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. Now, here’s today’s Financial Focus program.
Nate Kreinbrink:
Good morning and welcome to this week’s Financial Focus, brought to you each and every Wednesday morning right here on KROS. Well, this is Nate Kreinbrink with NelsonCorp, bringing you again this week’s show. Pleased this morning to be joined by Mike VanZuiden. I was joking with Mike on the way up here this morning that I’m honored. It’s the first time that Mike is joining the the Wednesday morning show. Hope to make this a regular occurrence as we continue on. But Mike, I’m pleased to have you this morning and taking time out of your busy schedule to make the journey up the hill this morning.
Mike VanZuiden:
Nice to be here.
Nate Kreinbrink:
As I said, Mike VanZuiden has recently, think he said five months or six months, somewhere around there, as far as what you’ve been with NelsonCorp Tax Solutions, getting ready to head into his first full tax season and I know that excitement, just can’t contain himself quite frankly.
Mike VanZuiden:
Exactly.
Nate Kreinbrink:
Before we get into a lot of that, why don’t you just give everyone just a brief description of yourself and tell us a little bit about yourself?
Mike VanZuiden:
Okay. Mike VanZuiden’s my name, I’ve grown up, lived in this area basically my whole life. I live in Fulton with my wife Christie. We’ve got a daughter Taylor, who’s a junior at the University of Iowa and then my son Trey is a senior at Fulton High. I’ve worked in the tax business now for about six years and, like you said, I’m in my early stages with NelsonCorp Tax Solutions. Just this past month completed my third and final IRS enrolled agent exam, so now officially an enrolled agent with the Internal Revenue Service, and just looking forward to an exciting, busy tax season. It’s a time of year where there’ll be a lot of activity for us in the office and we’re looking forward to that and looking forward to serving our current clients and hoping to see some new faces this year as well.
Nate Kreinbrink:
Yeah, I know. Seen you studying, we’ve all been through that in the security side of it and now even in the tax side of it, as far as just all the continued testing that goes into it. I know you mentioned as far as becoming that enrolled agent officially, but that wasn’t just a test. That was three tests or whatever. That’s a progressive system as far as having to pass the three of them to get that and I know that’s a big deal and know, again, going back and having to sit down and force yourself to study isn’t always the easiest thing to do sometimes. But I know from your standpoint it’s great to have that weight off your shoulders and be able to have that accomplishment behind you now.
Mike VanZuiden:
It is. It was a huge learning process. Some of the things were real familiar to me and I learned a lot of new things as well. But yeah, it is a process. It’s three separate four hour exams to get to the finish line and lots of hours preparing ahead of time. But it’s been a good process for me. It’s been a learning process and I’m also grateful to have it behind me.
Nate Kreinbrink:
I can only imagine. So, as we mentioned, we’re getting into, again, just the start of tax season and know that the phone’s starting to pick up as far as people already getting all their documents in the mail, starting to book those appointments coming up here in the next couple of months prior to the tax deadline, but [inaudible 00:04:05] what is something that you can maybe give as a tidbit of information to people out there? Obviously they’re going to start be getting their 1099’s in the mail coming up, but maybe some tips or whatever for people as they gather that stuff prior to turning it all in and getting those taxes done.
Mike VanZuiden:
I think it’s important, you want to have everything that you need. For some people that’s easy. They have a couple of W2’s. As you get into retirement age, a lot of people have several sources, so there are several 1099-R’s that they’re waiting for. Those are supposed to be in the mail by the end of January, so I would think for a lot of people, probably by the second week of February, you should have received most if not all of those. But it’s real important to have all of those in hand. A lot of times for a current client for us, we can tell. So if you bring your information in and, well, last year you had this and this, you don’t have it this year, it’s the basis for some questions to make sure that we’re documenting all of your income on your return. So that’s a big thing this time of year.
Mike VanZuiden:
A lot of people are anxious to get their taxes filed and get that annual chore off their plate, so to speak. But it’s important to have everything that you need to do that and do that right. So I think that’s always something that’s a challenge early on in the season as people rush to get it done. Just make sure that you have all the documents that you need in hand.
Nate Kreinbrink:
Well I think too, people don’t realize too that, as you mentioned, technically they have until the end of January too as far as getting those things in the mail. So again, it’s not like they’re for getting you or whatever. They’re preparing those and they have up until a certain point to be able to send those things out. Again, because I know it makes it easier on your point as far as when you get everything in and you go to do it and then you to wait because you maybe not have a document or something and then have to contact them again and do it. So I think as you said, making sure that all those documents are turned in correctly to be able to file them accurately. You mentioned Illinois as far as hometown, kids go to school there, set up roots there, whatever. From a tax standpoint, people from Illinois getting their taxes done in Iowa, there’s no differences or anything that people really need to know about that or any hiccups or as far as from that standpoint to be able to go into that?
Mike VanZuiden:
No, there’s not. There’s different forms depending on where you live. But no, the process is the same. So, if you come across the river to get your taxes done, it makes no difference. You’re still filing an Illinois return, and the same for Iowa. We file tax returns for people from all over the place, so where you live versus where you go to file really as far as residency goes, has no impact at all.
Nate Kreinbrink:
So, you mentioned, again, six years in the tax industry as far as you mentioned. I know just even during those six years there’s been ongoing changes to the tax laws, to the tax codes, to filing, to deductions, to all that type of stuff. Obviously going into this year we had the SECURE Act. We talked a little bit about some of those changes that went into it. Going back to 2018, you had the Tax Cut and Jobs Act, which changed some of the tax brackets. As taxes and tax laws constantly evolve, I think it’s a growing importance for people to really understand, again, not that they need to know officially, but have an idea as far as how the taxes changed their individual situations. When you guys sit down, I know Andy, yourself, Deb, as far as explaining some of that, maybe talk just a little bit as far as the tax planning portion of it.
Nate Kreinbrink:
Again, we’re looking backwards now. We talked a lot about tax planning verse tax preparation. So tax planning is you look backwards, tax preparation you look forward. But again, just knowing that there are going to be changes to the tax laws, maybe some of the changes that you’ve seen in just that short time and how we can maybe see that going forward with these new tax laws and ongoing, constantly evolving tax laws.
Mike VanZuiden:
Well, I think with the change has made a couple of years ago, it’s simplified things for a lot of people. The standard deduction basically, for all intents and purposes, doubled, so I think there are a lot less people are able to itemize deductions because the standard deduction is so large. It’s still important to keep receipts for expenses, let’s say medical expenses, but those sorts of things are still deductible if you have enough enough deductions to itemize on your return, and that’s becoming less and less common. But the advice I always give clients is if you’re not sure if you have enough or not, bring it in and we’ll figure that up and if we can itemize and take all of those things, we will. If not you take the standard and move on.
Mike VanZuiden:
But I think for a lot of people, the changes in the tax law the last couple of years, it’s simplified the process because they’re nowhere near the threshold of [inaudible 00:09:28] process. So it’s, I need a few documents here and I’m ready to get my return prepared and hopefully get some good news at the end of the appointment with the tax guy.
Nate Kreinbrink:
I know. It’s always funny and I’ve had Andy on a couple shows and he talks about that very concept, as far as the refund and that’s how people view the success of their taxes for the year is if they get a refund back or not. He jokes around and said, “I can make that number be whatever you want it to be as far as what your withholdings are to be able to increase or reduce your return that you’re going to get back.”
Nate Kreinbrink:
He said, “Where you want to look at is the overall taxes that you actually pay throughout the course of the year, and that’s how people should view whether their tax season was a success or not.” I think that’s extremely important and a misconception that people have because they get a big refund back, they’re happy, but that’s really their own money being returned to them.
Mike VanZuiden:
Exactly, it is. That’s a fact. The goal should be hopefully reduce the amount of tax that you pay, and for some people, that refund at the end of the year, that process of having a larger refund, it’s a savings account for them. If you struggle with the discipline to set money aside out of each paycheck to save, some people save that way.
Mike VanZuiden:
I’ve been in that boat in the past where the government can withhold it all and I’ll take it at the end of the year and then I’ll transfer it into my savings, because if I have it every week, I was more apt to spend it. Then that savings account didn’t grow at the rate that we wanted it to. So, the refund is-
Nate Kreinbrink:
It’s different for every situation.
Mike VanZuiden:
It’s different for everybody and you need to do what what works and fits your situation. But I would agree with Andy, the goal is to pay as little income tax as possible and, however big or small that check is, hopefully it’s a check at the end of the year, it’s a return of your money that’s been withheld out of your check.
Nate Kreinbrink:
To go into it. I know, like I said, they’re starting to get busy, but again, you guys are still taking on clients and everything getting ready for this season, so people can contact you as far as drop-offs, scheduling appointments, things along those lines?
Mike VanZuiden:
Absolutely. We will schedule appointments if you want to drop things off, we’re willing to do that and yeah, if you’ve been with us for years, we look forward to seeing you. If you are looking for someone to prepare your taxes, we’d love to help you out. Come and see us. We will make time and we’ve got capacity and looking to see lots of familiar faces and hopefully lots of new faces this year as well.
Nate Kreinbrink:
So, I did want to mention real quick before we run out of-
Mike VanZuiden:
Faces this-
Nate Kreinbrink:
Every Friday NelsonCorp Wealth Management is wearing jeans for charity. Money raised in the month of January will be donated to the Clinton Fine Arts Adopt an Instrument program. Mike, appreciate you joining me this morning on the Wednesday radio show. Hopefully first of many, right?
Mike VanZuiden:
Absolutely. It’s nice to be here. Thanks for having me.
Nate Kreinbrink:
Again, this is Nate with NelsonCorp Wealth Management bringing you this week’s Financial Focus. Thanks for tuning in and have a great rest of your week.
Announcer:
Financial Focus is a production of NelsonCorp Wealth Management in Clinton and Davenport. The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Inc, a broker dealer, member FINRA SIPC. Investment advisor representative, Cambridge Investment Research Advisors Inc, a registered investment advisor. Cambridge and NelsonCorp wealth management are not affiliated. Cambridge does not offer tax advice. For more information, visit our website at www.NelsonCorp.com.