Marrying a Non-U.S. Citizen? No Tax Honeymoon for You
Tax and Financial News
June, 2024
Marriage is a major life event. One that comes with all kinds of change, including financial. After getting married, there is so much to consider, from merging bank and brokerage accounts to setting up a will; from changing your withholding to updating retirement account beneficiary forms. If this seems like a lot to consider, it’s important to keep in mind that when a U.S. citizen marries a non-U.S. citizen, the situation gets even more complex.
Among some of the more complex tax considerations of mixed citizenship marriages are gift and estate taxes, which we will dive into below.
Gift and Estate Tax Overview
Before getting into the details on non-citizen spousal situations, here is a recap of the basics on U.S. estate and gift taxes. In the United States, estate and gift taxes are essentially a type of transfer tax, with the tax paid by the giver. Tax rates range between 18 percent and 40 percent of the assets transferred, but there are exemptions (with lifetime limits) that can reduce or even cancel out these taxes. Currently, the lifetime exemption is $13.61 million per person; however, this is set to drop to about $7.5 million starting January 1, 2026.
Read The Details
How to Develop a Credit Policy
General Business News
June, 2024
A credit policy explains how a company will manage lines of credit for client accounts and what procedures to follow for severely outstanding invoices. It helps a business promote a robust foundation for its working capital level.
Defining a Credit Policy
Unlike personal credit scores, business scores range from 0 to 100; the scores from the FICO Small Business Scoring Service range from 0 to 300. According to the U.S. Small Business Administration, a first step to establishing business credit is to sign up for a Dun & Bradstreet (DUNS) number for each business location.
There are three components to a company’s credit policy. First, develop an effective system of following up on past-due invoices. Second, define when, how much, and the terms of credit extended to customers. Third, establish how the business underwrites a client’s creditworthiness and put guidelines in place to determine when to increase or decrease lines of credit for clients.
Read The Details
6 Financial Tips for New Dads
Tip of the Month
June, 2024
There are probably few things as exciting and daunting as becoming a new dad, especially when it
There are probably few things as exciting and daunting as becoming a new dad, especially when it comes to finances. But we’ve got you! Here are a few tips to help you turn those challenges into opportunities as you walk this new life path.
Create a Budget
This is probably super obvious, but here’s a way to break it down into sections so you’ll have a roadmap.
- Look at current finances. This includes income, checking, and savings.
- Plan for new expenses. Make an exhaustive list of everything you can think of that your baby might need.
- Prioritize and cut. Identify these areas, then make hard decisions about where you need to change things for your new reality.
- Launch into the changes. Keep tabs on how you’re doing as your life evolves and adjust as you deem necessary.
Read The Details
