At Monotelo Advisors our accountants work hard to free up cash flow by helping you minimize your federal tax liability, giving you more money to reinvest into your future. Simplify Your Taxes with Trusted Experts Accurate, stress-free tax preparation for individuals and businesses. Learn More Schedule Meeting Start your 2024 Tax Return Tax Season Resources Gratitude, Generosity, and the Power to Change Lives 24 hours ago 4 min read The Multiplying Power of Generosity: Feed a Child This Thanksgiving Nov 13 3 min read 7 Money-Smart Principles Every Parent Should Teach Aug 12 4 min read Gratitude, Generosity, and the Power to Change Lives The Multiplying Power of Generosity: Feed a Child This Thanksgiving 7 Money-Smart Principles Every Parent Should Teach Looking for Financial Planning Help? Our values-based retirement planning will give you the quiet confidence that everything is on track for you to achieve your life goals. Get Started Learn More Run your business, we'll handle your finances. Small business owner? Yes, we can help you with your tax, bookkeeping and payroll needs. But there is so much more to having the right financial partner. Get Started Learn More

Monotelo Advisors Privacy Policy Introduction At Monotelo Advisors, we respect your privacy and are committed to protecting your personal information. This Privacy Policy outlines our practices regarding the collection and use of your data. Information Collection We may collect personal information from you in various ways, including when you visit our website, subscribe to our newsletter, fill out a form, or interact with our services. The types of personal information we collect may include: - Contact information (name, email address, phone number) - Demographic information (age, gender, location) Use of Information We use the information we collect for various purposes, including: - To provide and improve our services - To communicate with you, including sending newsletters and updates - To personalize your experience on our website - To analyze and understand how our services are used No Sale of Personal Data At Monotelo Advisors, we prioritize the confidentiality and security of your personal information. We want to assure you that we do not sell or share your personal data to any third parties. Your trust is of utmost importance to us, and we are committed to protecting your privacy. Data Security We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, or access your personal information. We do not share personal data (phone numbers) with third parties, affiliates or partners Your Rights Depending on your location, you may have certain rights regarding your personal information, including: - The right to access your personal data - The right to correct any inaccuracies - The right to request deletion of your data - The right to restrict processing of your data - The right to data portability - The right to object to the processing of your data If you wish to exercise any of these rights, please contact us using the information provided below. Changes to This Policy We may update our Privacy Policy from time to time. We will notify you of any changes by posting the new policy on our website. You are advised to review this policy periodically for any changes. No mobile information will be shared with third parties/affiliates for marketing/promotional purposes. All other categories exclude text messaging originator opt-in data and consent; this information will not be shared with any third parties

Welcome to the Big Beautiful Bill Resource Center The Big Beautiful Bill is transforming the landscape of financial legislation and we're here to help you stay informed every step of the way. This page is your central hub for everything related to the bill: expert articles, insightful videos, and in-depth webinars designed to unpack what it means, why it matters, and how it could impact your financial future. Check out our latest webinar. Click here to find a segment that interest you. New provisions for individuals under the Big Beautiful Bill New provisions for business under the Big Beautiful Bill Check out our articles on the Big Beautiful Bill Understanding the New Tax Relief for Seniors and Hourly Workers: Tips, Overtime, and Social Security Explained Jim Richter 25 Takeaways From the Big Beautiful Bill Michael Baumeister Three Sweeping Tax Reforms That Could Impact Your Paycheck Jim Richter

Big Beautiful Bill Webinar Segments Click on the topic you want to learn more about based on our webinar. How the OBBBA has changed exit strategies for business owners Overtime Pay Child Tax Credit SALT Cap No Tax on Tips Senior Deduction Check out our articles on the Big Beautiful Bill Understanding the New Tax Relief for Seniors and Hourly Workers: Tips, Overtime, and Social Security Explained Jim Richter 25 Takeaways From the Big Beautiful Bill Michael Baumeister Three Sweeping Tax Reforms That Could Impact Your Paycheck Jim Richter

Mahlon Mitchell shares his experience working with Monotelo Advisors

Small Business Retirement Planning Schedule Your Retirement Planning Call

About Us Who We Are Meet The Team Jim Richter, CFP®, CAIA®, EA President 800-961-0298 jim@monotelo.com Jim Richter is the President of Monotelo Advisors. Jim sets the strategic direction for the firm, including oversight of all tax and financial planning services at Monotelo Advisors. He brings 20+ years of experience in the financial services industry, including 10 years of hedge-fund specific work across diverse investment products. Prior to founding Monotelo Advisors, Jim spent 7 years as a Managing Director and Partner at a Chicago-based asset management firm. Prior to his time in the asset management industry, Jim spent 9 years as a fixed-income specialist in the banking industry. Jim is a CERTIFIED FINANCIAL PLANNER™ and Chartered Alternative Investment Analyst with a degree in Finance from the University of Illinois - Chicago. Jim is an Enrolled Agent, a federally authorized tax practitioner empowered by the US Department of the Treasury to represent taxpayers before the Internal Revenue Service. Gina Gucciardo, CPA Certified Public Accountant 217-839-4226 gina@monotelo.com Gina is a Certified Public Accountant with over 35 years in public accounting. Gina and her team provide tax and accounting services to small businesses throughout Macoupin County and the surrounding area. She spends a good portion of her time volunteering and serving on non-profit boards. She enjoys exercise and runs nearly five miles a day five days a week. She likes to travel and spend time with her family, friends, and pets. Gina has the distinct honor of being the very first graduate of of Blackburn College's Accounting program. Gina and her husband have two adult children, one grandchild and two dogs! Steve Watts, CPA Certified Public Accountant 630-377-1040 steve@monotelo.com Steve is a Certified Public Accountant with an MBA and the CIRA certification. He has extensive banking and accounting experience with direct knowledge of the challenges faced by small business owners. He has developed and implemented various automated programs for management and financial reporting. During his 13 years on the banking side, Steve has prepared financial statements as well as examined and analyzed the financial statements and cash flow for thousands of companies. He is a member of the American Institute of Certified Public Accountants, Illinois CPA® Society, National Association of Tax Professionals, Association of Insolvency and Restructuring Advisors and Turnaround Management Association. Steve and his wife have two adult children. Gavin Tabb, CPA Certified Public Accountant 847-923-9015 gavin@monotelo.com Gavin is a Certified Public Accountant and small business specialist for Monotelo Advisors. He is responsible for overseeing the staff that delivers a premium level of service to more than one thousand clients throughout the year. Gavin has a Bachelor’s degree in accounting from Northern Illinois University. He is an Intuit QuickBooks Certified User and he supports our small business clients throughout the United States with seamless payroll, bookkeeping and monthly accounting services. Gavin and his wife, Elise have a five-year old daughter and one-year old son. Michael Baumeister, CFP®, EA Addy Genetti Financial Planner 847-923-9015 michael@monotelo.com Accountant 217-839-4226 addy@monotelo.com Michael is a CERTIFIED FINANCIAL PLANNER™ for Monotelo Advisors. Michael provides solutions to client’s complex financial planning in a thorough, cost-effective manner. He is the point of contact for all financial planning clients to ensure a constant channel of communication and oversight. His personal experience brings an expertise in the fields of asset allocation, estate planning, insurance review, tax planning and comprehensive financial planning. Michael has a Bachelor’s degree in accounting from Judson University. Michael is an Enrolled Agent, a federally authorized tax practitioner empowered by the US Department of the Treasury to represent taxpayers before the Internal Revenue Service. Michael lives with his wife, Sarah, and their two-year-old son. Addy is an accountant for Monotelo Advisors. Addy graduated from Southern Illinois University in Edwardsville with a Bachelor’s degree in Accounting. She has 18 years of public accounting experience including preparation of individual, partnership, corporate and estate/trust tax returns. Addy serves Monotelo's small business clients with preparation of payroll, sales tax, bookkeeping and monthly accounting services. When she is not busy exceeding our clients' expectations, she is running around with her three boys to all of their sporting events. She loves to travel, especially anywhere there is a beach! Addy and her husband live on their family farm with their three boys. Lisa Rondi Accountant 217-839-4226 lisa@monotelo.com Lisa is a small business specialist for Monotelo Advisors. Lisa has 24+ years of experience in tax return, payroll, sales tax and bookkeeping preparation and review in the Gillespie and Carlinville offices. She strives to help clients with their financial needs in the ever-changing tax system. She enjoys spending time with her family, her church family and doing anything outdoors. She also enjoys spending time on her craft projects and she plays several musical instruments. Lisa lives in Mt. Clare, IL with her pets. Marianne Richter Engagement Manager 847-923-9015 marianne@monotelo.com Marianne Richter is responsible for ensuring that Monotelo is delivering a high level of customer service and meeting the expectations of Monotelo’s small business relationships. Marianne brings 13+ years of diversified training and marketing experience in the consumer goods industry to Monotelo. Working in senior management roles at Kraft Foods for more than a decade, she had national profit and loss responsibility for consumer brands. In addition to her brand management responsibilities, she also played the role of national trainer, traveling around the country training Kraft's emerging managers. Marianne and her husband, Jim live with their two sons who are both in college. Roger Medallo Relationship Specialist 800-961-0298 Roger@monotelo.com Roger plays a key role in developing relationships with small business owners for Monotelo Advisors. He sets appointments for our CEO and helps promote our Second-Act Planning® program to colleges and universities across the country. Roger has a degree in computer science and plays multiple musical instruments. Roger and his wife, Diane have been married for 6 years.

Going to an office is no longer a requirement of conducting business in the age of the internet, cell phones, Skype and GoTo meetings. OCTOBER 2017 MONOTELO QUARTERLY Quarterly: Oct 17 UNLOCKING the Missed Deductions of a Home Office Small-business owners should not miss the benefit of a home office deduction out of fear of a tax audit. Going to an office is no longer a requirement of conducting business in the age of the internet, cell phones, Skype and GoTo meetings. This means an increasing number of small-business owners are working from home, and eligible to claim a home office deduction. When Properly implemented, this deduction can make a significant difference in your tax liability. WHAT CONSTITUTES A HOME OFFICE? In order to claim a deduction for a home office the IRS requires that a designated space be used exclusively and regularly for business. Going to an office is no longer a requirement of conducting business in the age of the internet, cell phones, Skype and GoTo meetings. Exclusively used for business means it cannot ever be used for personal reasons during the tax year, this includes any type of storage for personal items. Although the office is to be used only for business, the tax code does not mandate that it be a separate room, it can be part of a room - walls are not a requirement. The office must also be used on a regular basis for business. HOW TO DEDUCT EXPENSES FOR THE HOME OFFICE There are two different methods you can use to claim a home office deduction, the actual expense method and the simplified method. ACTUAL EXPENSE METHOD The actual expense method allows you to deduct all direct expenses and a portion of any indirect expenses. Direct expenses are any expenses incurred specifically for the home office, such as painting the office or putting in new carpet. Indirect expenses include any expenses incurred for the home such as mortgage interest, property taxes and utilities. To claim these indirect expenses you need to determine the portion of the expenses that relate to the home office. This can be calculated by dividing the square footage of the office by the square footage of the house. You can also claim depreciation or a rent deduction for the part of the home used for business purposes. On the downside, when you sell the home any depreciation taken needs to be recaptured. This can be an unpleasant surprise come tax time. When using the actual expense method, detailed records and supporting documentation must be kept for all expenses. SIMPLIFIED METHOD If you prefer not to maintain records of these expenses, you can still take a home office deduction using the simplified method. The simplified method is calculated by simply multiplying the square footage of the office by $5 per square foot (up to 300 sq. ft.). The advantage to this method is the IRS does not require you to keep any records that are required by the actual expense method. The main drawback of the simplified method is that you will not be able to deduct your actual expenses if they exceed the allowance of the simplified method. The best solution is to keep track of all of your expenses and then determine at the end of the year which method will provide the greater deduction. MILEAGE Regular commuting to and from work is not a deductible expense, however travel between your primary office located in your home to your second office is classified as business miles that are deductible. This does not mean that you can set up a "home office" to deduct your regular commuting miles. It means that if your home office is where you conduct the majority of your business, you can deduct any mileage to a secondary location. Setting up a home office can potentially create several thousands of dollars in deductible mileage each year. TAKE AWAY Even the smallest home office can unlock significant deductions if the expenses are properly accounted for using either the actual or simplified method. It is very important that the space be used exclusively for business purposes. July 2017 Save as PDF May 2018

Why 401k Plans Are Sub-Optimal

By failing to plan ahead, you will find that most of your medical expenses are worthless on your tax return. With a little planning, you can prevent this. If you fail to plan ahead, you will struggle to claim your medical expenses as an itemized deduction when April 15th arrives. You will lose the ability to deduct the bulk of these expenses because they need to surpass 10% of your Adjusted Gross Income (AGI) to be usable as an itemized deduction . This means that taxpayers who make $100,000 during the year will not be able to deduct the first $10,000 in medical expenses. That handicap essentially means you will not be able to deduct any medical expenses, unless you incur heavy medical bills in a single year. And if you are paying AMT (the Alternative Minimum Tax) - don't even think about it. When it comes time to pay your income tax bill, most Americans want to pay the lowest amount possible. One of the ways taxpayers seek to do this is by increasing the number of deductions they take on their tax return each year. So it's not surprising that one of the common questions we receive from our clients is whether or not they can deduct their medical expenses. While the simple answer is "yes," the reality for most taxpayers is "no." However, with a little planning, that answer can be "yes." If you fail to plan ahead, you will struggle to claim your medical expenses as an itemized deduction when April 15th arrives. You will lose the ability to deduct the bulk of these expenses because they need to surpass 10% of your Adjusted Gross Income (AGI) to be usable as an itemized deduction . This means that taxpayers who make $100,000 during the year will not be able to deduct the first $10,000 in medical expenses. That handicap essentially means you will not be able to deduct any medical expenses, unless you incur heavy medical bills in a single year. And if you are paying AMT (the Alternative Minimum Tax) - don't even think about it. The best way to counteract this nasty little piece of the tax code is to set up an HSA (Health Savings Account) and contribute to it each year. When you contribute to an HSA you get the privilege of deducting the amount of your contributions from your income and you bypass the 10% threshold. You can do this even if you don't choose to itemize your deductions! And as an added bonus (do we sound like an infomercial?) - the money you put into your HSA, as well as the earnings of the account, can be taken out tax free as long as they are used for qualified medical expenses. While you cannot pay your health insurance premiums with funds from an HSA, you can pay most other medical expenses. Additionally, once you turn 65 you can use the HSA to pay your Medicare or other healthcare premiums. Requirements for an HSA In order to qualify for an HSA you must have a high-deductible health plan - defined as a healthcare plan with: 1 An annual deductible of at least $1,350 for individual coverage or at least $2,700 for family coverage. 2 Maximum annual out-of-pocket expenses of $6,750 for individual coverage and $13,500 for family coverage. Once you have your HSA set up you can contribute up to $3,500 per year for individual coverage and $7,000 for family coverage. If you are over the age of 55 you can contribute an additional $1,000 annually. Save as PDF Read More Articles Share Failing to order your affairs to minimize your tax burden could cost you significant money - so don't wait to take action. If you have additional questions or need some planning help, please reach out to us. Avoiding the 10% Threshold for Medical Expenses How do you setup an HSA? If your employer offers a high-deductible health plan, they should also give you the ability to contribute to an HSA. You can also open an account on your own through a qualified HSA provider, such as a bank or insurance company (go to www.hsasearch.com for a list of qualified HSA providers). What happens if you don't plan ahead? So what is the solution? Key Takeaways If you don't plan ahead and contribute to a Health Savings Account then you will find that most, if not all, of your medical expenses will be ineligible for a deduction due to the 10% threshold that must be met before deducting medical expenses. By setting up and contributing to a Health Savings Account you can deduct your full contribution to the account and have the flexibility to pay your medical bills with tax-free withdrawals from the account.

SMALL BUSINESS TIPS Quarterly: Oct 17 Putting Your Self-Employment Income Away for Retirement If you are self-employed or own a small business you have the potential to put up to $61,000 per year towards your retirement by setting up a solo 401(k) ($67,500 per year if you are over 50). Of that $61,000 you can put $20,500 into a Roth 401(k) where all of your distributions will be tax-free at retirement. The Tax Cuts and Jobs Act has created a unique opportunity to maximize your retirement cash-flow by utilizing our current low tax rates to save in an individual Roth 401(k) account where your funds will never be taxed again. Before we get into the gritty details of the solo 401(k), be aware that the rules governing these accounts are a bit complex. If you are interested in setting up a solo 401(k) please reach out to us and we will help you determine if you qualify for one and how much you can contribute on an annual basis. Qualifications To qualify for a solo 401(k) you need to operate either a sole-proprietorship or an incorporated business and have no full-time employees other than your spouse. A full-time employee refers to any employee over 21 years of age who works 1,000 hours or more annually. You can utilize the solo 401(k) if you have part-time employees or independent contractors. One advantage of the solo 401(k) over a traditional 401(k) is that as the business owner you are considered both the employer and the employee. This allows you to make employer contributions to your account on top of your traditional deferrals or Roth contributions. The employer contributions cannot be made to a Roth account. They must be made to the traditional 401(k), so they will be tax-deferred when they are made and taxable when you withdraw them in retirement. Contribution Limits Employee Contribution Limits: As the employee of your business you can contribute up to $20,500 ($27,000 if you are over 50) or 100% of your “earned income,” whichever is less. If you are a sole-proprietorship or a single-member LLC your “earned income” is the net profit of your business after deducting your business expenses. If your business is a C-Corp or S-Corp your “earned income” would be the amount of your W2 wages. Employer Contribution Limits: As the employer you can also contribute an additional 25% of your adjusted earned income. If you are a sole-proprietorship or a single-member LLC the formula to calculate your allowed employer contributions is a bit more complicated but works out to roughly 18.5% of your net profits. If your business is a C-Corp or S-Corp your allowed employer contributions are 25% of your W2 wages. Combined Annual Limits: For 2022 the combined limit on employee and employer contributions is $61,000 ($67,500 if you are over age 50). This means if you contribute the full $20,500 as an employee the most you can contribute as the employer for 2022 is $40,500 regardless of how much earned income you have. Summary With the potential to put away up to $67,500 per year towards your retirement, the solo 401(k) is a powerful tool to help you prepare for your future. While 401(k) plans have historically been very costly to set up and maintain, increased popularity has significantly reduced the administration costs in recent years. If you are interested in setting up a solo 401(k) for your business, we would be happy to direct you on how to get started. Previous Article Next Article

Our observations on how the Tax Cuts and Jobs Act actually impacted our clients in 2018. 1 2 The Tax Cuts and Jobs Act that was enacted by congress last year was the biggest change to the tax code our country has seen in 30 years. We have talked about how the changes would impact you, our clients in past correspondence; so we thought it might be helpful to share our perspective now that the first tax season under the new laws is behind us. Comparing our client’s 2017 and 2018 tax returns, here are our main observations on how Monotelo clients’ returns changed from 2017 to 2018: Average income increased 4% from 2017 to 2018 Total taxes paid decreased by an average $564 per return filed The average effective tax rate decreased from 11.09% to 10.42% Federal refunds on average decreased $1,729 What’s most notable about the data we just shared is the fact that the lion’s share of our clients paid less income tax in 2018 than they paid in 2017 (and that includes the fact that you made more money in 2018), yet you received a smaller refund around tax time. People often assume that a smaller refund means the government is keeping more of your money, but that assumption would be wrong. Your tax refund is simply the difference between what you paid to the government throughout the year and what you should have paid. A tax refund is a good metric for how accurate your tax payments were, but not a good metric for how much you actually paid in taxes. Despite lower refunds, our clients actually paid $564 less in taxes than they did in 2017, while they made more money. With the average effective tax rate (actual taxes paid as a percentage of total income received) dropping from 11.09% to 10.42%, the biggest factor was the new tax brackets. Many taxpayers who were previously in the 15% or 25% brackets moved into the 12% or 22% brackets after the tax reform. If our clients payed a lower percentage of their income in taxes, and payed a lower dollar amount in taxes, then why was there such a significant drop in the average refund amount from the prior year? The primary factor that contributed to the lower refunds is the changes that were made to the withholding tables that calculate the federal tax to withhold from your paychecks. The main reason people were receiving larger tax refunds in prior years was due to the fact that the withholding tables were skewed to put more money in the hands of the government over the course of the year. The prior withholding tables did not properly account for the various deductions that taxpayers could take on their returns, and simply assumed that the taxpayer would be taking the standard deduction. With the standard deduction increasing significantly in 2018, a larger percentage of taxpayers utilized the standard deduction, and did not itemize. This single change caused the withholding tables to more accurately calculate the correct amount of federal withholding, and put more money into the pockets of taxpayers throughout the year. Lower withholding means more money in each paycheck. On average our clients had $2,300 fewer dollars taken out of their checks in 2018 than they did in 2017. The bad news is that some people were relying on the larger refunds, and didn’t realize that their raise came in each check they collected throughout the year. Takeaways Overall, our clients faired pretty well under the Tax Cuts and Jobs Act. The majority of our clients paid a lower percentage of their income in taxes. For those who paid significantly more tax in 2018 than they paid in 2017, it was usually due to a large increase in income. While most taxpayers received lower refunds than prior years, this was largely due to decreases in their federal withholdings, not because they had a larger tax bill to pay. As we approach the midpoint of 2019, now is a great time to review the tax withholdings from your paycheck to ensure you do not owe at the end of the year. If you are concerned about owing on your 2019 tax return or would like an idea of what refund you can expect next year, give us a call and we can provide you with some guidance. THE IMPACT of the Tax Cuts and Jobs Act Read more articles Failing to order your affairs to minimize your tax burden could cost you significant money - so don't wait to take action. If you have additional questions or need some planning help, please reach out to us.