Timely Tax Info and Other News for Financial Planning Hawaii Clients

John Robinson |
Categories
State Tax-Free
Dividends
Tax Planning
  • A Very Important Tax Doc – If you live in a state that levies a tax on interest income and have money in a Schwab taxable account that is invested in Schwab Treasury Money Fund (Symbol SNSXX/SUTXX), be sure your tax preparer has Schwab’s 2024 Supplement Tax Information document.  This form shows the IRS that 99.99% of the interest earned in this fund is from state-tax free interest on U.S. treasury securities.  If you live in a high-tax state such as HI, NY, NJ, CA, MD, RI, CT, and MA, this document may save you a fair amount of money.     

 

  • Schwab Tax Documents Availability Calendar – This link shows when account holders can expect to receive the docs they need to file their 2024 tax returns.  NOTE:  The fastest way to get your tax documents is by checking your accounts on the SchwabAllicance.com website and downloading.

 

  • Doh! (Equitable's Big Gaff )– Clients who purchased AXA Equitable Accumulator Elite variable annuity contracts in the early-mid-2000s have likely been receiving announcements that the contracts have been sold to Venerable Life (formerly Voya). While the name change will have no impact on the structure of the contracts, upon the closing fo the deal, Equitable sent a letter informing annuity holders that their contracts had been surrendered!  THIS LETTER WAS SENT IN ERROR.  While Venerable will now administer the contracts, the original contracts have NOT been surrendered.  SEE IMAGE BELOW

 

  • The CTA Needs to Go Away – My November 2024 article on the Corporate Transparency Act sought to raise awareness of the Act’s 12-31-2024 deadline for consumers who have established separate legal entities, such as irrevocable trusts, LLCs, LPs, and corporations, to provide detailed beneficial ownership information to FinCEN ( a division of the  U.S. Treasury) or risk substantial fines and/or jail time.  Shortly after I posted the article, a lawsuit seeking an injunction on the Act was successful in the U.S. District Court, and FinCEN agreed to pause enforcement.  Then,k on December 23, a federal appellate court judge struck down the injunction.  FinCEN responded with a less than gracious extension of the filing deadline to January 10th.  However, on December 27th, the same 5th Circuit appellate judge reversed his decision and reinstated the injunction. On January 23, 2025, the Supreme Court again lifted the original injunction but did not address a separate, more limited injunction.

At this time, CTA filing remains voluntary, with no legal resolution expected before May. There is bipartisan legislation being drafted in both houses of Congress to repeal the CTA.  Aside from the government overreach issue, there is now such much public confusion over the Act that it really needs to just go away. 

Beneficial Ownership Reporting: Litigation, Pending Legislation and Possible Future Executive Action Have Left the Fate of the Corporate Transparency Act (CTA) Up in the Air  (PillsburyLaw.com)

 

  • FEB 2025 Rising Dividends List – For clients who invest in rising dividend stocks for passive income generation (and, hopefully, price appreciation), I have updated my screened list.  Send me an email at jr@fphawaii.com if you would like to receive the spreadsheet.

 

  • Honolulu Star-Advertiser Tech View –  My review of personal finance software apps was featured in the July 22, 2025 issue.  [READ IT HERE]  It is worth mentioning that I did not include eMoney in my review because it is only available through financial advisors.  It has greater functionality than the DIY apps.