1. Week In Review: Improved Inflation Numbers Warm Consumer Sentiment 2. Poll: When Do You Do Your Midyear Tax Planning? 3. Client Exclusive: If You’re Looking To Find A More Tax-Friendly State, Look At These Key Factors​ 4. Did You Know? Info On The TD Ameritrade – Schwab Merger Is Now On Annex’s Client Center  5. Ask Annex: When Is Roth A Bad Idea? | 6. “Life is like riding a bicycle…” | What’s Playing: Don’t Confuse ‘Less Bad’ For ‘Better’

1 | Week In Review

Improved Inflation Numbers Warm Consumer Sentiment

CPI and PPI showed that inflation is headed towards Fed goals. What do consumers think? Annex Wealth Management’s Dave Spano and Brian Jacobsen discuss.

2 | Poll

When Do You Do Your Midyear Tax Planning?

LISTEN TO

The Difference Maker Of The Game

Brewers vs. Pirates | July 2, 2023

Check out the full archive HERE.

3 | Client Exclusive

If You’re Looking To Find A More Tax-Friendly State, Look At These Key Factors

With the 2017 Tax Cuts and Jobs Act in effect, there’s been a lot of talk about the change in the SALT (State and Local Tax) deduction. This is a deduction we may receive for real estate taxes and either state income taxes or sales tax paid.  

SALT deductions continue to be limited to $10,000 per tax return in 2023 and are slated to remain capped through 2025. This means many people may not be getting a federal income tax benefit for all state income taxes paid. Moving to a no- or low- income tax state during retirement may be more appealing.

Nine states do not have an income tax:  

• Alaska  
• Florida  
• Nevada  
• New Hampshire (does not tax earned income, but does impose tax on interest and dividends) 
• South Dakota  
• Tennessee  
• Texas 
• Washington  
• Wyoming 

This week: Review the following factors when looking at moving to a tax-friendly state. 

Consider What It Takes To Leave  

Before you make the switch to leave your home state, be aware of what the state uses to determine your legal residence for income tax purposes. The Wisconsin Legal Residence Questionnaire asks if you changed your driver’s license, where you vote, where your car is insured, and what your future intents are. Wisconsin typically requests the form with your tax return in the year you change your residency.  

Consider What It Takes To Establish Residency 

Depending on what state you move to, they may have their own requirement on what you need to do to establish residency. For instance, in Florida you’re able to file a Declaration of Domicile, affirmatively establishing your intent to be a Florida domiciliary going forward. Unfortunately, establishing domicile isn’t as easy as completing a form. Please see your advisor for a comprehensive list of action items for establishing domicile in your target state.  

Consider If You’ll Be Paying Partial-Year State Taxes  

If you earned income in two different states during the year, unless you’re moving to or from a state that does not collect individual income taxes, you’ll need to file a return in each state to cover the time you lived there.  

Consider Changes To Insurance  

If you’re changing jobs, consider your individual or new employer-sponsored insurance options, like life, health and disability insurance. Ask your private insurance provider about coverage for your cars, any items you have in storage, and your residence to make sure you’re covered during your move.  

Talk with your financial advisor about any insurance policies you have to see if they still apply to your change in circumstances. Sometimes, a change in insurance coverage is necessary when you move someplace new. 

Info On The TD Ameritrade – Schwab Merger Is Now On Annex’s Client Center

If you have accounts open through TD Ameritrade and would like to reference the communications you’ve received from Annex without having to dig through your email, you can visit the Client Center on our website where all correspondence is now housed.

You can get to this information via the home page of the Client Center, or by clicking here!

If you still find you have questions, please reach out to your Wealth Manager or Client Service Manager. 

5 | Ask Annex

Annex Wealth Management’s Sarah Kyle and Matthew Morzy, CFP® answer several Ask Annex questions.

Do you have a question for Annex Wealth Management? Drop it here.

6 | Quote of the Week

Annex Wealth Management provides free workshops, open to the public, on key wealth management topics.

Start the week off with insight and perspective from members of the Annex Wealth Management Investment Committee.