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Contact us Phone: 800-961-0298 Fax: 847-929-9134 Email: Info@monotelo.com Give us a call Schedule an appointment Schedule an Appointment Client Portal resources Need help with the portal? Click below to get help. View Resources Tax tools & tax tips Refund Tracker W-4 Withholding Calculator Documents checklist Tax Bracket Calculator File Upload Our Team Recent posts & news Social Security Changes for 2026: A Complete Guide for Retirees and Working Beneficiaries Social Security plays a crucial role in the financial security of more than 70 million Americans. For 2026, the Social Security Administration has announced several important updates affecting retirees, workers claiming early benefits, SSI recipients, and individuals with disabilities. Below is a comprehensive overview to help you stay informed and plan financially for the year ahead. 1. A 2.8% Cost‑of‑Living Adjustment (COLA) The biggest change for 2026 is the 2.8% COLA appl Key Tax Season Deadlines for Monotelo Small Business Clients in 2026 As the 2026 tax season gets underway, our goal is to ensure that all of our small business clients experience an easy and stress-free filing. The following dates highlight essential deadlines for S-Corps, partnerships, and C-Corporations—these are intended to keep you organized, help you avoid penalties, and clarify what you can expect from us. Feel free to bookmark this page or revisit it during the season; it's your key resource for the most important tax milestones. Key Important Tax Dates for Small Businesses in 2026 As a small business owner, staying on top of tax deadlines is essential to avoid penalties and keep your operations running smoothly. Below is a clear timeline of key dates for the 2026 tax season, along with an important update on 1099 reporting requirements. January January 15, 2026 – Fourth-quarter 2025 estimated tax payment due (Form 1040-ES). January 31, 2026 – Deadline to issue W-2 and 1099 forms to employees and contractors. Since January 31 falls on a Saturday Important Tax Updates for 2026 As the 2025 tax season approaches, taxpayers and businesses must stay informed about critical updates and deadlines to ensure a smooth filing process. Here’s a comprehensive guide to help you navigate this year’s tax requirements. Key Dates Individual Tax Filers: Jan. 31, 2026:  Deadline for employers to furnish Form W-2 to employees and for businesses to provide certain Form 1099s to contractors and recipients. Late Jan. 2026 (TBD):  The IRS is expected to begin accept A Journey Toward the King Merry Christmas! As we gather with family, reflect on the year behind us, and look forward with hope, we want to welcome you to this year’s Christmas message. At Monotelo Advisors, it is a joy and a privilege to walk alongside you—through every season and every milestone. This Christmas, we invite you to pause with us and revisit one of the most awe‑inspiring moments in history. The night a star lit the sky and hope entered the world: The Star That Changed Everything I s Gratitude, Generosity, and the Power to Change Lives As Thanksgiving approaches, many of us pause to reflect on what we’ve been given: family, health, opportunities, and the simple blessing of food on our Thanksgiving table. Gratitude is more than a seasonal sentiment; it’s a transformative force that shapes our mental health, relationships, and even our financial decisions. Why Gratitude Matters Research consistently shows that people who intentionally count their blessings live happier lives and experience less depression View More Stay up to date with the latest tax and market analysis. Subscribe to receive our weekly market and tax analysis. Site Title

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 2025 Tax Return Tax Season Resources Social Security Changes for 2026: A Complete Guide for Retirees and Working Beneficiaries Jan 15 4 min read Key Tax Season Deadlines for Monotelo Small Business Clients in 2026 Jan 13 2 min read Important Tax Dates for Small Businesses in 2026 Jan 8 3 min read Social Security Changes for 2026: A Complete Guide for Retirees and Working Beneficiaries Key Tax Season Deadlines for Monotelo Small Business Clients in 2026 Important Tax Dates for Small Businesses in 2026 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

Mahlon Mitchell shares his experience working with Monotelo Advisors

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.

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TAX IMPLICATIONS of the AMERICAN JOBS PLAN President Biden recently unveiled his new infrastructure plan which includes significant tax hikes for corporations and higher-net-worth families. While the plan has not been passed through congress, we thought we would share a quick overview of what is likely to come if there is a shift in tax policy. The plan includes over $2 trillion in proposed infrastructure spending over the next 15 years. To offset this additional spending the plan imposes significant tax hikes on corporations and higher-net-worth families. The plan also includes a number of changes to corporate tax law while modifying the Tax Cuts and Jobs Act that was passed in 2017. Increased Corporate income tax rate from 21% to 28%... While the 7% corporate tax hike may translate into lower stock prices, reduced 401(k) matching, fewer bonuses, fewer raises and fewer stock grants for employees, another impact is likely to come from the income phaseouts on Roth and traditional IRAs. In addition to these proposed changes is a significant tax increase on those making over $400,000 a year. Higher income, capital gains and estate taxes… President Biden campaigned on taxing the wealthy and he’s now beginning to deliver on that promise. White House press secretary Jen Psaki said that the $400,000 threshold for higher taxes would be for families. That implies that individuals surpassing the $200,000 threshold are also likely to face higher taxes. The changes that U.S. taxpayers are facing provide Monotelo with a significant opportunity to demonstrate our value. By getting creative and thinking outside the box, we can equip you to take proactive steps to reduce your short-term and lifetime tax burden. If you would like to learn more about the specific changes that are being proposed, please see below. Warning! There is a fair amount of tax speak here! The proposed tax plan includes the following changes: Imposes a 12.4 percent Old-Age, Survivors, and Disability Insurance (Social Security) payroll tax on income earned above $400,000, evenly split between employers and employees. This would create a “donut hole” in the current Social Security payroll tax, where wages between $137,700, the current wage cap, and $400,000 are not taxed. Reverts the top individual income tax rate for taxable incomes above $400,000 from 37 percent under current law to the pre-Tax Cuts and Jobs Act level of 39.6 percent. Taxes long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6 percent on income above $1 million and eliminates step-up in basis for capital gains taxation. Caps the tax benefit of itemized deductions to 28 percent of value for those earning more than $400,000, which means that taxpayers earning above that income threshold with tax rates higher than 28 percent would face limited itemized deductions. Restores the Pease limitation on itemized deductions for taxable incomes above $400,000. Phases out the qualified business income deduction (Section 199A) for filers with taxable income above $400,000. Provides renewable-energy-related tax credits to individuals. Expands the estate and gift tax by restoring the rate and exemption to 2009 levels. Expands the Child and Dependent Care Tax Credit (CDCTC) from a maximum of $3,000 in qualified expenses to $8,000 ($16,000 for multiple dependents) and increases the maximum reimbursement rate from 35 percent to 50 percent. For 2021 and as long as economic conditions require, increases the Child Tax Credit (CTC) from a maximum value of $2,000 to $3,000 for children 17 or younger, while providing a $600 bonus credit for children under 6. Reestablishes the First-Time Homebuyers’ Tax Credit, which was originally created during the Great Recession to help the housing market. Biden’s homebuyers’ credit would provide up to $15,000 for first-time homebuyers. Source: www.taxfoundation.org If you would like to learn more about how these changes will directly impact you or how to proactively address these changes so your financial security is not put at risk, please reach out to us at info@monotelo.com or 800-961-0298. 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.

Social unrest, unemployment, COVID 19, the election… there are a multitude of items we could address in our October update. While there are a multitude of things we could address, I want to focus today’s discussion on the bond market. The reason why I want to focus on bonds is because bonds play a critical role in running a balanced portfolio. The inverse relationship that stocks and bonds have experienced in the past has allowed investors to structure portfolios with higher levels of stability. That’s because bonds have historically acted as a shock absorber. When stocks were down, bonds were usually up and when stocks were up, bonds were oftentimes down. However, the “shock absorber” role that bonds have played to offset stock market risk can no longer be relied upon, so this requires a major shift in our thinking. Executive Summary With stock market valuations near all-time highs, the risk of a stock market correction is heightened. The fixed income side of a balanced portfolio (the bonds) will no longer provide protection against a correction in the equity markets. Declining rates have removed most of the income from bond portfolios and have added significant risks if rates were to rise. Bonds (and “balanced portfolios” that hold bonds) may face significant headwinds in the future. Finding solutions to this real problem is key to achieving your long-term goals. What’s Changed? As global interest rates have declined over the past 12 months, the search for income has become incredibly challenging. We believe that one of the biggest sources of protection to the traditional 60/40 portfolio (60% stocks, 40% bonds), has now become a risk. A 40% allocation to a mixture of Treasury bonds and high-quality corporate bonds has historically served investors well. That’s because bonds were effective at creating income, providing a diversified source of return and providing capital preservation in times of uncertainty. But we believe core fixed income is not equipped to meet these goals going forward. After four decades of declining interest rates and the massive fiscal and monetary response to the health crisis, rates are hovering near zero throughout the world. Not only do low rates rob investors of needed income, the historic assumption that bonds will provide a form of protection is no longer valid. Income If you search for income in today’s bond market, prepare for a long, unfruitful journey. Domestic and global bond indices yield between .6% and 1.2% across the globe. Where exactly is the income in core fixed income? Rates have steadily declined for the past few decades, but have significantly declined over the past 12 months — and there is little room left for rates to fall much further Rates have been falling for nearly four decades, but the collapse in interest rates over the last 12 months have left little room for rates to fall much further. The end result is that bond prices have a limited capacity to rise. Not only is there little room for bond prices to rise, there is tremendous room for bond prices to fall, especially if interest rates rise in the future. In the interest of full disclosure, rising interest rates in the near term is not a major concern of ours. We are simply stating that there is significant downside risk with little upside reward. This can be observed by the chart below. If rates rise, all the return that was recently captured by the bond market from price appreciation (the black area), is likely to be given back by price depreciation. Interest rates can do three things in the future. They can go up. They can go down. Or they can stay the same. If rates stay the same, we collect a paltry 1% yield on our bond portfolio and our bond prices remain stable. If interest rates go down, we collect the 1% yield with a small amount of price appreciation (because rates cannot fall very far from 1% unless they go negative). And if they go up, we collect our 1% yield, but we are subject to significant risk of price declines. Not a whole lot of upside, but quite a bit of downside risk! Unlike stocks, which theoretically have unlimited upside potential, bond returns are capped by the amount of interest income they produce over the life of the investment. For example: If you bought a 10-year treasury with a 5% yield back in 2000, your bond would produce 50% income over the 10-year life of the bond (10 years of coupon payments * 5% yield = 50%). If rates were to go to zero, your bond would go from a price of par (100) to 150. It could not go above the 150 unless rates went below zero. If you bought a 10-year treasury bond in today’s world at a 1% yield, and interest rates dropped to zero tomorrow, your 10-year treasury would now be worth 110 (1% yield for 10 years in a 0% interest rate environment = 10 points of price appreciation). Your bond could not go above 110 unless interest rates dropped below zero. If instead of rates falling, rates began rising, that price change we just described would turn into price depreciation. And bond prices have way more room to move down rather than up when you are beginning at a 1% yield. That is why bonds have higher levels of risk today than ever before. But it’s not just bonds that have increased sensitivity to interest rates. The performance of the tech and consumer discretionary sectors have also benefitted from our low-rate environment. These sectors now make up a much larger portion of the overall market, and that means that equity portfolios may also be sensitive to rising interest rates. Diversification Bonds have been a pretty effective hedging tool against past stock market corrections. When equity markets experienced signs of turmoil, central banks generally stepped in to lower rates, and bond prices responded positively to the new, lower interest rates. We believe that this relationship can no longer be relied upon, because there’s very little room to lower rates further. That means one of the most-valuable diversification benefits of holding bonds is severely diminished. Inflation It’s very difficult to accurately predict future inflation, but we can say this: if inflation were to resurface, bonds will not do well. The paltry income will not offset the purchasing power risk, and bond prices will decline when interest rates rise. In Summary With interest rates near zero, the upside of holding bonds is low, and the downside of holding bonds is high. The one reason to hold high-quality bonds in today’s environment is that they will be one of the few assets to hold their value if we see another significant equity market correction. In times of uncertainty, high-quality bonds will always be the preferred asset. While that is a very good reason to hold bonds, the other risks of holding a traditional bond portfolio have become too great to ignore. Not only has income diminished significantly from a traditional bond portfolio, bonds may no longer provide the needed buffer during times of economic turmoil and they face greater downside risk in scenarios when interest rates rise. If core fixed income is no longer able to serve the role it has played in the past, investors will need to use different approaches to accomplish their goals. If you would like to explore options that can help reduce the risks we mentioned here, register for our November webinar or schedule a no-obligation 20-minute strategy call and we can provide more insight into potential solutions. Read more articles THE HIGH RISK OF OWNING BONDS TODAY 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.

When planning your vacation be sure to familiarize yourself with the business travel rules to see if you can qualify some of your costs as business expenses. October 2018 MONOTELO QUARTERLY Quarterly: Oct 17 HOW TO DEDUCT YOUR VACATION TRAVEL AS A BUSINESS EXPENSE Taking a vacation can be expensive, so naturally the idea of deducting your vacation expenses on your tax return is an appealing idea. However, before you get carried away planning a lavish vacation with the hopes of writing off the entire cost, make sure to familiarize yourself with the requirements to qualify your expenses as business travel. To qualify for a tax deduction the trip needs to serve a legitimate business purpose. Handing out business cards on the beach does not count. There are 5 criteria your trip must meet to be a qualified business expense: Profit motive. The trip must serve a legitimate profit motive. This means that you can reasonably expect the trip to create profit either now or at some point in the future. Stay overnight . You can only deduct meal and lodging expenses when you are away from home overnight. “Rational Businessperson” test. Your trip will only qualify as a business expense if the business motive is strong enough that a rational businessperson would make the trip if business was the only motive. Primary purpose test. You can only deduct your travel expenses when your trip is primarily for business. This is determined by calculating the number of business days vs personal days of the trip. This may sound like a deal breaker, but it is easier to meet this requirement than you think. Maintain good records. If you do not properly document the business purpose of your trip, your travel expenses, or your actual business activities on the trip you will risk losing your entire deduction. Your trip expenses can be broken down into two general categories with different requirements to be deductible: Transportation Expenses Transportation costs include airfare, train tickets, or the cost of a rental car to get to your destination. These expenses are all-or-nothing, if the majority of your trip days are business days you can deduct all of your transportation costs. If the majority of your trip days are personal you cannot deduct any of these costs. Life Expenses Life expenses include your daily meals and lodging. Unlike transportation expenses you do not need to meet the majority of business days threshold to take life expenses. Instead you simply take the life expenses for each business day of the trip. What Counts as a Business Day? It may be easier than you think to qualify most of your trip as business days. Each day of the trip only needs to meet one of these criteria to qualify as a business day: Work more than four hours. You have a workday when you spend more than half of normal work hours pursuing business. Since a normal workday is eight hours you only need to work for more than four. Presence-required day. If you are required to be at a destination on a specific day for a legitimate business purpose. For example, if you have a meeting with a client in another city on Tuesday, then Tuesday qualifies as a business day even if that is your only business activity for that day. Travel day. Days you spend traveling to or from your business destination count as business days as long as you are traveling in a reasonably direct route. Weekends and holidays. If a weekend or holiday falls in between two business days you can count those days as business days as long as it would not be practical to return home in between the two business days. If you live in California and have meetings in New York on Friday and Monday, it would not be practical to return to California for the weekend. Therefore, all four days count as business days. Saved-money-on-travel days. If you arrive at a destination a day early or leave a day late in order to save on your travel expenses you can count the extra day as a business expense as it served a legitimate business purpose of reducing your travel costs. Summary The rules governing business travel allow for some freedom to deduct vacation time as business expenses, but do not provide a blank check to write off an entire vacation simply because you spent a few minutes discussing business. You need to find the right balance between work and relaxation, properly document your work activities, and maintain records of all your expenses. Previous Article

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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

Whether you are just starting out, or are a seasoned veteran, you need someone who will work with you to ensure that you are set up for success. Real Estate Agents At Monotelo we start every relationship with a tax conversation. We work hard to free up cash flow by helping you minimize your federal tax liability. That's because every dollar you pay the federal government is one less dollar available for you to reinvest back into your business, or one less dollar available for you to reinvest into your future. Learn More This video provides a brief summary on how we reduce the tax liability for our real estate agents. Why Monotelo? Tax Tips and Strategies Strategies that you can implement in your business to simplify the filing process while reducing your tax burden. How We Work With Clients The biggest enemy to the accumulation of wealth is the 23-43% cut the government is going to take on your income. That is why we start every relationship with a tax conversation. Monotelo White Papers Read about some of our previous cases, the challenges we faced, and the solutions we developed to help our clients make better financial decisions.