Davette Lynne Hrabak, CPA discusses rates, exemptions, and limits; education grants; standard deductions; and Health Savings Accounts. Each section is in bold for ease of finding the information you may need.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
2024 TAX YEAR QUICK TAX FACTS - RATES, EXEMPTIONS, AND LIMITS
By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA
“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.” https://www.DavetteLynneHrabak.com
Each year the IRS releases and revises various rates, exemptions, and limits, some of which are listed below:
Standard mileage rates are available to taxpayers in certain situations. The current rates for the filing of your 2024 income tax return are as follows:
Business Standard Mileage Rate: 67 cents per mile
Medical and Moving Standard Mileage Rate: 21 cents per mile
Charitable Standard Mileage Rate: 14 cents per mile
Gift Tax Annual Exclusion: $18,000
Each person’s tax situation is unique. Sometimes the only deduction available is a standard deduction and other times the taxpayer has an option to choose to use standard deductions or actual amounts. The circumstances of which is most appropriate to use must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayers’ situations identical.
2024 STUDENT EDUCATIONAL GRANTS CAN BE TAXABLE
Many taxpayers are surprised to learn that some of the money that their children receive from scholarships and grants may be taxable.
It is true that there is a Scholarship and Fellowship Exclusion; however, this is only a partial exclusion based on how the funds are used, and, in order to qualify for that exclusion, the person must be a degree candidate. The degree candidate must also be a primary or secondary school student, a college undergraduate or graduate student, or a part-time or full-time student at an accredited educational institution that provides a program that is acceptable for full credit towards a bachelor’s or higher degree. The program that the school offers must be a program of training to prepare students for gainful employment in a recognized occupation.
If the person is not a degree candidate, all amounts received are generally taxable.
If the person is a degree candidate, then only amounts used on tuition fees, books, supplies, and equipment are tax-free. Any amounts spent on room & board and travel are taxable. This, at times, causes some confusion among many taxpayers and can result in some students inadvertently doing their tax returns incorrectly.
Scholarships and fellowships include items such as Pell Grants and other Title IV Grants that are need-based education grants.
There are, however, additional exceptions to this, including if the scholarship or grant was provided by a tribe subject to the Tribal General Welfare Act.
STANDARD DEDUCTIONS
Almost every year there are changes to the amounts for the standard deduction. As you probably know, if you do not itemize a tax return, you are entitled to take a standard deduction. If you are able to itemize, and if your itemized deduction is higher than your standard deduction, then you take your itemized deduction.
The standard deductions for this year are:
Married Filing Joint or Qualified Widow or Widower Filing Status: $29,200
Single Filing Status: $14,600
Head of Household Filing Status: $21,900
Married Filing Separately Filing Status: $14,600
Dependent Filing Status: $1,300
HEALTH SAVINGS ACCOUNTS (HSAs)
You may have heard about Health Savings Accounts. They are a savings account that is set up and used exclusively for paying for qualified medical expenses for the account beneficiary and/or dependents and/or spouse of the beneficiary.
They are a valuable tool to help assist in the costs of individual and family health care.
If you qualify for a Health Savings Account, there are differences in limitations based on self-only or family coverage.
For 2024, some of the limitation cut-offs are as follows:
For Self-only Coverage:
Contribution (deduction) limit: $4,150
Plan minimum deductible: $1,600
Plan out-of-pocket limit: $8,050
For Family Coverage:
Contribution (deduction) limit: $8,300
Plan minimum deductible: $3,200
Plan out-of-pocket limit: $16,100
There is an annual contribution amount increase of $1,000 for anyone who is age 55 or older.
Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.
When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.
Davette Lynne Hrabak, CPA, located at 164 South Lake Avenue in Phillips, specializes in tax return preparation, business start-up services, consulting, bookkeeping, payroll, and all your accounting needs. Call 715-339-6638 or visit Davette's website. Follow her Facebook page.
The Town of Worcester has received an Agricultural Road Improvement Program (ARIP) Grant for two roads totaling 3.5 miles.
ARIP Grants cover the improvement of roads, culverts, and bridges that are used to transport agricultural and forest products that are currently subject to load limits. Once the roads are improved, they will not have load limits and will be upgraded to last a longer time.
Little Chicago Road, from Highway 13 to the railroad tracks, and Cranberry Lake Lane, from Little Chicago Road to the culvert, will be reconstructed and upgraded, according to Chairman Jim Michler.
The project will cost $2,087,555.40. The State of Wisconsin will reimburse the Town of Worcester 87.7% of the actual cost not to exceed $1,830,786.09. According to the Town of Worcester, the town's portion of the total cost will be $256,769.31.
Deer Creek Angus, LLC has a large selection of Black Angus burgers, steaks, roasts, and other beef products sold by individual packages and in quarters, halves, and whole. Contact Deer Creek Angus, LLC at 715-550-6156, find products & pricing on their website, and follow their Facebook page.
By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA, https://www.DavetteLynneHrabak.com “When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”
Whether you are saving for retirement or retired, there is important information you need to know for the preparation of your taxes.
2024 TAX YEAR RETIREMENT SAVER’S CREDIT
The Retirement Saver’s Credit is available in 2024 to various taxpayers who fit into the proper criteria and who make eligible contributions. It is a non-refundable credit which allows for a taxpayer to receive a non-refundable credit of up to $2,000 for a Married Filing Jointly Tax Status and up to $1,000 for a Single or other filing Tax Filing Status.
Many taxpayers are surprised to learn that they have contributions that count for this credit.
Qualifying taxpayers must be at least 18 years old by the end of the year, not be claimed as a dependent on another taxpayer’s tax return, and cannot be a full-time student.
The Retirement Saver’s Credit is also subject to phase-outs, which vary depending on a taxpayer’s filing status and Adjusted Gross Income amounts. If a taxpayer lands in the proper range, then the taxpayer would be eligible to receive from 10 to 50 percent of their contributions back up to a maximum allowed by their filing status.
There are also rules on eligible contributions and some reductions of some eligible contributions, but, overall, many taxpayers are able to use this credit.
Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.
When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
2024 TAX YEAR TIP: QUICK RETIREMENT TAX FACTS
Each year the IRS releases and revises various limits for various retirement type accounts, some of which are listed below:
IRA Contribution Limits:
Under Age 50: $7,000
Age 50 or Older: $8,000
Elective Deferral Limits On:
Simple IRA Plan:
Under Age 50: $16,000
Age 50 or Older: $19,500
401(K), 403(B), and 457 Plans:
Under Age 50: $23,000
Age 50 or Older: $30,500
Each person’s tax situation is unique. There are a variety of plans out there; the above list is not all inclusive but provides some information on some of the most common ones. Each person’s tax situation must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayers’ situations identical.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
At the end of the academic year 2024-2025, Northland College will close in Ashland.
The college has been in financial jeopardy since March 2024. According to the college, "More than one thousand donors responded to a spring 2024 fundraising appeal and the college reduced costs by streamlining its academic offerings and cutting staff." Northland College began the 2024-2025 academic year with nine majors and a smaller number of students.
However, the college was not able to sustain itself. Therefore, the Northland College Board of Trustees voted unanimously on Wednesday, February 19, 2025 for the closure.
According to Ted Bristol, Chair of the Northland College Board of Trustees, “Despite the collaborative efforts of the entire Northland family, we no longer have the resources needed to navigate the economic and demographic storms endangering small, liberal arts institutions today....With declining enrollment and soaring costs, it takes more to operate the College than we raise in tuition. Even after enacting aggressive measures to cut costs and raise revenues, Northland College has no sustainable path forward.”
Interim President Barb Lundberg assured the students that this year's coursework will continue and commencement will take place as scheduled. Students who are not graduating will be advised on options, such as teach-out agreements with cooperating institutions and transfer to other colleges.
The college was founded in 1892 and was the first US college to fully integrate an environmental focus with its liberal arts curriculum.
Phillips High School has announced the honor graduates for the Class of 2025.
Lily Miller is the valedictorian, Maya Nieto is the salutatorian, and there are 23 additional honor students, including Lane Abraham, Amanda Angelo, Christian Benson, Shay Denzine, Mataya Eckert, Nickolas Edgerton, Kylie Edinger, Ty Henderson, Ariel Henney, Sarah Knaack, Andrew Krueger, Kaitlyn Matthewson, Meredith Merlak, Caitlin Pesko, Jaycee Pomeroy, Kacie Quinnell, Brayden Revak, Jade Revak, Rylie Sidenbender, Ayden Tobias, James Vollendorf, Karol Wright, and Kiana Zierer.
IAP Inc. is a manufacturer of industrial fans and blowers. Impeccable service, high quality standards, continued growth & prosperity. Visit IAP's website. and follow their Facebook page.
Jill Underly, Brittany Kinser, and Jeff Wright were on the ballot for the Wisconsin Superintendent of Public Instruction during the primary on Tuesday, February 18, 2025.
Statewide, as of the time of publication, Jill Underly had 38% of the vote (about 177,205 votes), Brittany Kinser had 35% of the vote (about 161,385 votes), and Jeff Wright had 27% of the vote (about 128,336 votes). 466,926 votes were cast in those totals.
In Price County, 1,074 people voted. Brittany Kinser received 458 votes, Jill Underly received 349 votes, and Jeff Wright received 264 votes.
The two women will face off in the general election on Tuesday, April 1, 2025 to decide which of them will hold the upcoming four-year term.
Pine Village in Prentice offers affordable, active living in a wooded setting for those 50+ and disabled persons. Rent is based on 30% Adjusted Gross Income. Small pets under 30 pounds are welcome. Contact Pine Village at 715-428-2300.
On April 2, 2024, Town of Worcester residents voted to change the town clerk position from being elected to appointed. The change will take effect on April 1, 2025.
When a clerk is elected, the clerk must reside in the township. When a clerk is appointed, the clerk does not need to reside in the township. Therefore, the Town of Worcester has appointed a deputy clerk/treasurer from another township. This appointment was needed due to the resignation of Alli Mathys, the current clerk/treasurer. She resigned, "effective immediately," on January 6, 2025. However, Alli has agreed to remain as the clerk/treasurer until April 1, 2025.
At that time, Regina Damjanovic will become the deputy clerk/treasurer. Regina is also the clerk for the Town of Elk.
According to Chairman Jim Michler, "The board will revisit filling the clerk/treasurer position after April 1, 2025."
By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA, https://www.DavetteLynneHrabak.com “When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”
Social Security and Medicare are not just about retirement; they also have tax issues for individuals and businesses.
Each year, the maximum amount of earnings that is subject to Social Security Tax and Medicare Tax changes.
For 2024, the maximum amount of earnings subject to Social Security Tax was $168,400 and for 2025 it will be $176,100.
For 2024 and 2025, the maximum earnings subject to Medicare Tax is unlimited.
A very common question that many people have as they are nearing retirement, and when they are in the first year of their retirement, is, “What is the maximum amount of earnings that I can make and still receive my full Social Security benefits?”
For 2024, you could have made $22,320 if you were under the full retirement age at December 31, 2024. For 2025, if you are under the full retirement age at year’s end, you can make $23,400. However, if it is the year in which you reach full retirement age, for the months leading up to full retirement age only, you could have made $59,520 for 2024 and you can make $62,160 for 2025. Further, in the month that full retirement age is reached and later, there is no limit to the amount you can earn and still receive full benefits.
Just because you can earn as much as you like and still get your full benefits once you hit full retirement age, you still have to pay taxes on any portion of your Social Security that is taxable, just like you did in years before you hit your full retirement age. The rules are for a calculation of reduction of benefits, not a reduction of taxes.
Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, call Davette at 715-339-6638 for a free, no obligation quote. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.
Price County United Limited (PCUL) purchased the former Lionite property on April 1, 2024. While the majority of the parking lot is owned by PCUL, the City of Phillips maintains the entire parking lot for use by the public to access the park and lake.
On April 26, 2024, the attorney for the City of Phillips, Bryce Schoenborn, sent an e-mail to PCUL expressing an interest in obtaining the parking lot by Elk Lake Park.
The body of the e-mail reads:
"Now that the transfer of the Lionite property to Price County United Limited appears to be complete, the City would like to initiate discussions regarding the parking lot for the Elk Lake Park. I am enclosing a printout from the Price County Beacon website, which shows that a good portion of that parking lot is owned by PCUL.
Image by: Beacon
"As you know, the City has traditionally maintained the entire parking lot, including graveling, grading, and plowing. The parking lot is used by the park visitors and other guests to the area. Obviously, the City would prefer to have legal title to the parking lot, in the event that a potential future owner of the Lionite property should attempt to restrict public access in any way. That would also reduce any liability exposure to PCUL for the parking lot or the general public’s use of the parking lot.
"Please give this matter some thought and contact me at your convenience. Thank you!"
Later that day, Lynda "Lyn" Ludwig replied stating, "PCUL is not interested in selling at this time."
At a meeting in June 2024, the topic was discussed in closed session. Bryce explained, "After that meeting, a letter was sent by e-mail to PCUL requesting that the City and PCUL engage in a constructive dialogue about coming to an agreement rather than pursuing eminent domain. PCUL was given a couple of weeks to reply."
The body of the June 12, 2024 e-mail reads:
"I had reached out to you on behalf of the City of Phillips regarding a potential land swap with the City for the Elk Lake Park parking lot about a week ago. I have not yet heard back from you.
"The City Council met again last night, on June 11, 2024. The City believes that it is critical to the public interest that the parking lot be owned by the municipality. However, the City would much rather prefer engaging in a constructive dialogue and attempting to come to an agreement, rather than pursuing eminent domain. That being said, the City Council has decided that if no response is received by June 25, 2024, it will have no other option but to proceed accordingly.
"Please let me know if this proposal is of interest to you. Thank you for your time and attention."
On June 19, 2024, PCUL's attorney, Jonathan Sopha, sent a reply to the city, as follows:
"I am writing to you on behalf of my client, Price County United Limited (“PCUL”). As you likely know, PCUL is a non-profit entity focused on community issues that impact the City of Phillips (“City”) and Price County. PCUL recently acquired the former Lionite Wood Products plant in the City, along with associated real property (“Lionite Property”). I am responding to your recent communications on behalf of the City regarding its interest in acquiring a portion of the Lionite Property.
"I want to be clear that PCUL is not in a legal position to entertain any sale, exchange, or partition affecting the Lionite Property due to agreements and property restrictions that prohibit such transactions. Additionally, the Lionite Property is part of a remediation and redevelopment plan with the EPA and is included in various PCUL grant applications relating to community development in the City. Based on your prior correspondence to Lyn Ludwig, it appears that the City is keenly interested in owning the portion of the Lionite Property located adjacent to Elk Lake Park. I think it would be beneficial for the City to consider how PCUL’s grant applications and redevelopment efforts could provide much more value to the City than it would gain through acquiring a portion of a gravel parking lot.
"I understand that the portion of the Lionite Property you are inquiring about has been made available for use by the City and the public for vehicle and boat trailer parking for multiple years. PCUL currently allows public parking on this portion of the Lionite Property, and is agreeable to entering into a written agreement with the City as needed to memorialize the public use. Since the public need for parking seems to be addressed, I am curious to know what critical public interest is served through the City’s ownership of this portion of the Lionite Property, rather than simply continuing public use of it. An attempt by the City to take any of PCUL’s property through eminent domain would result in a protracted and expensive legal process. The Lionite Property is part of multiple multi-million-dollar grant awards and applications, and an attempted taking could result in significant financial harm to PCUL and the public if these grants are put at risk."
As of the time of publication, no agreement has been made by PCUL and the City of Phillips regarding this piece of land.
According to City of Phillips Clerk Shelby Kosmer, "There was no set price offered for the land. The chunk of land that was discussed as a land swap with was a portion of Tax ID 25373, the blue section; this is off County Road H, where there was the bridge to the fairgrounds."
Image by: Beacon
My Price County asked what might happen to the Elk Lake Park parking lot if the proposed 132 housing units or commercial development was placed in that area. Perhaps the park's parking lot would get used for parking at the residential units or business properties. Shelby said, "This property is currently zoned as industrial so there would be some zoning changes that would need to be applied for and occur prior to any housing units being put on the property or commercial development. I would believe a parking solution would be addressed prior to that."
When asked why the city added PCUL's plans to their 2024 comprehensive plan if PCUL is not willing to swap or sell the parking lot, Shelby replied, "The city wants to work with all parties interested in positively impacting our city and are dedicated to fostering an environment that encourages innovative ideas and initiatives no matter who is submitting the plans, collaborating is an important part in this process; however, I do not have a direct response as it relates to them not working with the city regarding the parking lot acquisition."
PCUL stated in their September 2024 meeting that only an approximately 9-acre portion is in their EPA grant application and that they portion off acreage for each application which lends to the question of which, if any, grant application is the parking lot included. According to the city clerk, "The city has not been supplied the grant application, so at this point in time I am unsure of what portions of the acreage is included as the city was advised the full acreage of the entire Lionite property, parking lot included, was part of the grant application."
According to Bryce and Shelby, this is a developing situation, and there may be more information later this month after city meetings.
PCUL's board members, Lyn Ludwig, Blake Pluemer, and Cheryl Moore, did not respond to My Price County / My Northern Wisconsin's request for comments. They were asked if they had plans to do a land swap or sell the parking lot to the city; if the parking lot was covered in any grant(s), and, if so, which grant(s); and to give us any updates on the properties owned by PCUL and Lyn Ludwig in the City of Phillips. If a response is received, My Price County / My Northern Wisconsin will update this article.
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On the evening of January 26, 2025, a snowmobile accident was reported in northern Price County.
A husband and wife heard loud noises outside their home. The woman said she saw a piece of wood from their deck fly up, and her husband ran outside to see what had happened. The female caller reported that a man, driving a snowmobile, had crashed into their house. She said they did not believe the driver was going to survive.
A member of Park Falls EMS arrived at the accident site, and radioed out to the responding Park Falls EMS stating that the man was showing aspirations and was breathing but had severe trauma to his head. Officer Fohr arrived on scene at the same time as a man with EMS.
The officer went to the location. He observed that on the south side of the residence, there was a deck raised by support beams so the deck could be walked under. A support beam was broken on the deck, and some siding was broken on the house. The basement wall was visible underneath the deck, and the snowmobile was partially underneath the deck, approximately four to five feet from the south basement wall. According to Officer Fohr, "The snowmobile was mangled from front end damage."
The snowmobile driver, named Joseph, was lying on his stomach over the seat. The male owner of the home was holding Joseph's head, which he had wrapped in a towel to help stop the bleeding. Since the homeowner was holding the man's head properly and said he was okay with doing so, he continued to assist. Joseph was struggling to breathe and was slightly groaning. Blood was observed in the entire bottom of the engine block and in the snow. There was also vomit and saliva present.
EMS members and the officer put Joseph on a gurney, and he left in the ambulance at 7:28 p.m. He was then taken from Park Falls Airport, via helicopter, to a hospital.
The officer surveyed the scene and discovered that before hitting the support beam of the deck on the house, the tracks showed the snowmobile initially had been driving north/northeast on Wintergreen Lake. The snowmobile then drove through a wooden swing set before hitting the residence. There were no marks on the lake to indicate the snowmobile tried to slow down.
The investigation discovered the man was staying at an area resort for a bachelor party. Deputy Lex and Officer Fohr found six members of the bachelor party outside of a cabin at the resort. One of the men was the owner of the snowmobile that was involved in the crash. The men stated they did not know that Joseph had left the bar and taken the snowmobile. They stated they were unsure where he was for about fifteen minutes. They thought the snowmobile had been stolen. They advised the man had been drinking alcohol all day.
No further information was given on the man's condition. However, he is not listed as a crash fatality on the Wisconsin DNR's 2025 Snowmobile Fatal Crash Summary as of February 3, 2025.
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