CCM INSIGHTS
A Newsletter by Compass Capital Management
UPCOMING CORNHOLE TOURNMENT
Compass Capital Management is thrilled to announce the 2026 Pat Layden Memorial Cornhole Tournament, scheduled for April 25, 2026. This annual event brings together clients, colleagues, and the community for a day of friendly competition, connection, and meaningful impact.
This year’s tournament holds special significance, as all proceeds will be donated to the Oklahoma Parkinson’s Alliance The event reflects Compass Capital Management’s commitment to giving back and supporting causes that matter deeply to our team and community.
Registration opens next week, and we couldn’t be more excited to welcome teams of all skill levels from seasoned competitors to first-time players Participants can expect a fun, energetic atmosphere, great prizes, and a memorable day supporting a powerful cause.
A LOOK INSIDE THIS ISSUE:
1.Upcoming Cornhole Tournament
2.UNDERSTANDING YOUR PERSONAL INCOME TAX RATE
In addition to team registration, sponsorship opportunities are available for local businesses and organizations. Sponsors will receive on-site recognition, signage at the event, and logo placement on the official tournament T-shirts distributed to every player. Sponsorship packages also include the opportunity to enter a team and waive the registration fee an easy way to combine marketing, community engagement, and team building
We look forward to seeing our community come together for a day of competition, camaraderie, and charitable giving. Mark your calendars for April 25 and get ready to toss some bags for a great cause!
UNDERSTANDING YOUR PERSONAL INCOME TAX RATE
BY: JIMMY J. WILLIAMS, CPA/PFS, CFP , CRPC ® ™
The Internal Revenue Code of the United States is one of the most complex laws written by man When passed into law in 1912, the law and the reporting form required of the taxpayers were an example of simplicity Fast forward 114 years and it has become a behemoth of administrative and criminal laws that few people understand
To make this process simpler for individuals, think about your income tax reporting as a time of reflecting on your activities of the prior year while structuring your current year to take advantage of certain benefits allowed under the law. Too often filers simply place their tax return into the arbitrary position of “Hope I get a refund!” as opposed to understanding the process, the types of income and deductions that give them the most benefit in reducing their liability
Although not applicable to every filer, the traditional process of “postpone income and accelerate deductions” is a great place to start in your tax planning. What can you control more easily – income or deductions? Of course, most individuals will say their deductions are the most opportune for them to create tax savings. Review your areas of deductions such as medical expenses, property taxes, sales taxes, state income taxes, mortgage interest, automobile interest, charitable contributions, etc and determine if you have accumulated sufficient amounts to elect to itemize on your personal return The current standard deduction for individuals is $15,750 and married filing joint is $31,500 If your total allowable personal itemized deductions do not exceed the appropriate standard deduction, then you do not need to spend additional time accumulating them
Looking at your income streams, there are many areas that will allow you to control the timing and taxability of income. For example, if you are employed and have a 401(k) plan, or something similar, consider deferring income to fund your future retirement This is called a tax deferred approach since you will eventually pay tax on the funds when withdrawn in retirement If you are self-employed, you have a greater opportunity to control your income reporting in the tax year To illustrate this approach, consider deferring your billing for December every other year to reduce income in the tax year Again, this is a tax deferral approach
Consider investing in the types of positions that provide you with a better opportunity to reduce taxable income. Municipal bonds may be an appropriate type of investment the pays you tax-exempt interest income over time Some of these types of bonds have other risk factors you may want to consider and the time horizon of the investment may be longer than you desire However, the taxability of the earnings is a good means of reducing your income tax burden
Upon calculating your taxable income, which is your gross reportable income less your standard deduction or itemized personal deductions, you will need to compare your income to the applicable schedule to determine your tax amount This is the amount of tax you utilize to determine your effective tax rate To illustrate the calculation, if your gross income is $100,000 and you are a single filer with no itemized deductions, you would have taxable income of $84,250. After reviewing the 2025 Tax Table published by the IRS for a single filer, you would owe $13,455. To find your effective tax rate divide your tax ($13,455) by your taxable income ($84,250) and the result is 15.97% effective tax rate.
Understanding your effective tax rate helps you make financial decisions about contributions to your employer-provided plan, an IRA or writing a check to a charity Each dollar you defer into retirement or donate to a qualified charity could save you approximately 16%
One of the approaches we take in educating our clients about the applicability of taxation on their family’s income is to discuss the issues during our client meetings. It is critical that you understand the impact of taxation on your family’s budget. As once stated by Benjamin Franklin, “There are only two certainties in life – death and taxes.” If you wish to learn more about taxes and how your family can save more for the future, contact a CERTIFIED FINANCIAL PLANNER® professional for a complimentary consultation See you on the jogging trail!
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