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GJM is pleased to have Taylor Timmons join our team (and family) as a tax associate. As she settles into her new role, here’s a chance to get to know her in this Q&A. 

Describe your role at GJM. I will be preparing both business and individual tax returns, as well as helping with financial planning.

When did you start employment with GJM? September 7, 2021

Why did you choose the accounting industry? I have always enjoyed math throughout school, so I decided to give accounting a try in college, and now I am making a career out of it! I am doing what I enjoy and getting to help people in a sense with their accounting needs.

Are you from the Toledo area originally? If not, where are you from? I grew up in Lindsey, OH but now live in Helena, OH with my husband Colin

What do you like about living in Northwest Ohio? I think Northwest Ohio is a pretty quiet and calm place to live. However, there are also so many things to do around us that are never too far away!

Where did you go to school? Bowling Green State University, graduated in May of 2021

Anything you’d like to share about past work/school history, etc.? I have interned with GJM twice for the tax busy season

Do you have any pets, hobbies, family? We have an Australian Shepherd dog named Jack! He is 10 months old.

How do you like to spend your free time? I like to play volleyball, spend my weekends with family and friends, go to Cleveland Browns games, hang out at home with my dog, and Colin and I have cattle, so we spend a lot of time at the barn

What is something people may be surprised to find out about you? I am the oldest of 4 girls in my family!

And now you’re part of the GJM family. Welcome, Taylor!

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Question: As I’m approaching retirement age, I am considering moving my savings from a traditional IRA to a Roth so the money is taxed now rather than when I start receiving payments. Is this something you would recommend?

Tax Partner Dave Baymiller’s answer:  These Roth IRA conversions need to be evaluated on a case-by-case basis.  You need to consider your current and projected future tax brackets, your cash on hand to pay the tax on the conversion, your estate plan, your time horizon, the expectation of growth in the fund, and your expectations on needing to tap the funds during your retirement. One nice thing about the Roth IRA is that you do not need to start taking mandatory distributions after you reach age 70 ½.  There are also some nice estate planning benefits associated with the Roth. Because you do not need to take the distributions at age 70 ½ , the IRA can grow to a larger amount than what you might experience under the traditional IRA rules which would leave more tax free money later on for your heirs.  Also, by paying the income tax now, you will be reducing the size of your estate and effectively prepaying the heirs’ future income tax without it being recognized as a taxable gift.

Dave Baymiller is a partner in the tax services area with over thirty years of public accounting experience. He practices exclusively in the area of federal, state and local taxation with an emphasis on tax planning and consulting. Learn more about Dave Baymiller’s expertise and how to contact him.

If you’ve got kids in college, we’ve got some information on a way to save some money. It has to do with something called the “American Opportunity Tax Credit.” But, there are some things about this credit than can get a little tricky…

Gilmore Jasion Mahler CPA Amy Merkel appeared on WTOL this week with some good information for students and parents.

What is the American Opportunity Tax Credit?

The American Opportunity Tax credit can reduce your tax liability up to $2,500 per year, it is even partially refundable if you do not have any federal tax liability. This AOC is available if you or one of your dependents is a college student and meets the qualifications.  100% of the first $2,000 paid + 25% of the next $2,000 paid

Who qualifies?

• Tuition was paid for yourself or one of your dependents
• Student is at least a half-time student for one academic period in the tax year or the first 3 months of the following year
• First four years of college
• Cannot have claimed the Hope or American Opportunity Credit for more than 4 years
• Modified AGI (basically AGI, line 22 from your tax return) must be less than $80,000 single/$160,000 for MFJ to get full credit

What expenses does it cover?

• Tuition – generally the amount reported on form 1098-T by the educational institution
• Books – do not have to be purchased from the institution
• Supplies and equipment, though NOT a computer unless it is required for attendance
• NOT room and board costs

What’s “tricky” about the tax credit?

Be careful with 529/qualified tuition program or education savings plan funds – no double benefit allowed; you can use the 529 funds to pay tuition and take advantage of the AOC at the same time, however some of the earnings of the 529 account may end up being taxable.

How do student loans factor in?   

Loans = tuition paid. If using the credit with a loan – remember, it is when the expenses are paid/NOT when you get the loan money or when you pay the loan back.

Who actually gets the credit?

You need to remember that the AOC follows the students’ exemption. It doesn’t matter who pays the tuition. What matters is who claims the student as a dependent. This credit follows the exemption…no matter who actually pays the tuition costs. (example: using grandparents and student payments) The student (if not yourself) must be claimed as a dependent on your tax return for you to claim the credit.

Need more information?

Look for IRS form 8863. You’ll need to file it with your tax return to claim the credit. Also IRS Publication 970 has some good info on the American Opportunity Tax Credit.. in easy to understand language.

Amy Merkel is a Tax Senior Manager at Gilmore Jasion Mahler. She works with clients across many industries.

They said "I do" and danced the night away, but as the new day dawns on their wedded bliss, the happy couple should consider a few tax consequences:

New names: if either spouse is changing names, he or she will need to report it to the Social Security Administration on Form SS-5, Application for a Social Security Card.

New tax bracket: Combined lives may mean a new tax bracket. Each spouse that works for wages should report their newly wedded status to his or her employer on a new Form W-4, Employee's Withholding Allowance Certificate.

New address: If either of the newlyweds is moving, they'll want to let the IRS know with Form 8822, Chage of Address

New tax status: If the couple is married as of December 31, that's their marital status for the whole year for tax purposes - and that means they need to decide whether to file jointly or separately.

Just a few things to keep in mind to ensure that the newlyweds live happily ever after.

Guest blogger Amy Sigurdson contributed this article. Amy is a Tax Associate at Gilmore Jasion Mahler, LTD. Learn more about GJM's expertise in Tax, or sign up for our tax newsletter Focus which offers articles geared toward tax savings for both individuals and businesses.

GJM’s Mary Jo Pitzen and Marie Saner presented a tax planning session November 15^th at Gilmore Jasion Mahler’s Maumee office for members of the local chapter of the National Association of Women in Construction (NAWIC), an organization that provides members with opportunities for professional development. Topics tackled at the session included construction industry year-end planning, depreciation and tax credits and incentives.  They also reviewed President Elect Trump’s proposed tax reform plan. Mary Jo Pitzen and Marie Saner are members of GJM's Construction Specialist Team and have expertise in the industry, working with clients across the region. Mary Jo is also an active member of NAWIC.