Page 14 THE SAUGUS ADVOCATE – FriDAy, AUGUST 2, 2024 Saugus Birthday Celebrations BUDGET| FROM PAGE 4 JULY 2024 BIRTHDAYS: The Senior Center celebrated the collective birthdays of 14 Saugonians for the month last Friday (July 26). Pictured from left to right: Front row: Eleanor Blaney, Mary McKenzie and Cathy Dortona; back row: Frank Roche, Anne Tucker, Danielle LeBlanc, Bill Bidmead, Annette Reed, Cathy Billings, Diane McConnell, Sandra Lerner, Joanne Torosian, Robert Torosian and Paul Watts. (Courtesy Photo to The Saugus Advocate) T he Senior Center hosted a special party on July 26 to honor 14 Saugus residents who shared July as their birthday month. Birthdays are always special occasions at the Saugus Senior Center. The last Friday of each month, the Center holds a birthday celebration for any senior who would like their birthday to be recognized. They receive a free pizza lunch, cake and ice cream and a souvenir group photo to take home. SIMPLE TRUST VS. COMPLEX TRUST A ll Trusts for tax purposes are classified into two basic types of Trusts: simple or complex. To determine which type of trust you are dealing with, you must read the terms of the Trust instrument itself. With a simple Trust, the Trustee is required to distribute the income generated by the Trust to the income beneficiary until some predetermined time period has passed. With a complex Trust, the Trustee is not required to distribute the income generated by the Trust to the income beneficiary. The Trustee has discretion to distribute income. A simple Trust cannot make distributions to charitable organizations. A complex trust can make distributions to charitable organizations. Capital gains are generally considered to be a part of the principal (or corpus) of the Trust and therefore are not distributed to the income beneficiary of a simple Trust. With a simple Trust, the income beneficiary will be taxed on trust ordinary income such as interest income and dividend income, whether or not it is actually distributed to the income beneficiary. With a complex Trust, the Trustee has discretion to distribute inal tax bracket once taxable income reaches $3,100. It reaches the highest 37% federal tax bracket once taxable income reaches $15,200. In contrast, a single individual does not hit the 37% tax bracket until his or her taxable income reaches $609,350. He or she will only be in a 12% federal tax bracket when taxable income is between $11,600 and $47,150. A Trust will lose its clascome to specific beneficiaries pursuant to the terms of the Trust itself. If the income of a complex Trust is not distributed, the Trust itself will pay the tax. If the income is distributed, then the beneficiary receiving the income will report the income on his or her tax return upon the receipt of a Schedule K-1 form from the Trustee. The beneficiary will pay the tax on his or her individual income tax return. Income tax rates for complex trusts are significantly higher than for individuals. From a tax standpoint, it often makes sense to distribute income out to the beneficiaries in order to save substantial tax dollars. For Calendar year 2024, a non-grantor Trust’s income is in the 24% federsification as a simple Trust during any year in which the Trustee distributes corpus. A simple Trust is entitled to a very low exemption of $300 to offset income generated by the Trust. A Complex Trust is entitled to an even a lower exemption of $100. A Trust can never be a simple Trust in the year of termination. You must check off one of the boxes on page one of Form 1041 before filing a Trust income tax return in order to let the IRS know what type of Trust is involved. Joseph D. Ca taldo is an esta te planning/elder law a ttorney,Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. million over last fiscal year, with minimum per pupil aid set at $104. It also provides for $1.3 billion in Unrestricted General Government Aid (UGGA) to support a wide range of municipal services, which represents a oneyear increase of more than $38 million. Representative Wong noted the new budget will provide Saugus with $14,065,891 in direct education aid and $4,517,440 in unrestricted state aid for Fiscal Year 2025 to fund police, firefighters and other critical municipal services. During the initial House budget debate in April, Representative Wong successfully advocated for the inclusion of several local initiatives for his district. Funding for those projects was retained in the final conference committee report. Representative Wong noted that the budget contains additional education-related funding assistance for cities and towns, including $198.9 million for charter school reimbursements, $99.5 million for regional school transportation, $1 million for non-resident regional transportation, and $28.7 million for homeless student transportation. The budget also provides $493.2 million in Special Education Circuit Breaker reimbursements, as well as $16 million in Rural School Assistance Grants. The FY25 budget allocates $45 million in supplemental road and bridge funding under the Chapter 90 program. The Legislature had previously allocated $200 million for this local infrastructure program as a standalone bill that was signed into law in May. Representative Wong noted that the budget legalizes online Lottery sales in Massachusetts, which is expected to generate $100 million in FY25, but includes restrictions limiting online purchases to individuals who are 21 or older and language prohibiting advertising that targets minors. A portion of the revenues generated through online Lottery sales would be allocated to the Commonwealth Cares for Children (C3) grants to support early education and care programs. In addition, the budget authorizes the use of debit cards for Lottery purchases, which is expected to bring in an additional $25 million in revenues. The budget also includes provisions for the state to offer a one-time tax amnesty program that would run for 60 days, with the timing and scope of the program to be determined by the Commissioner of Revenue. Representative Wong said the FY25 budget makes significant investments in education and transportation by providing: $170 million to fund universal free school meals in Massachusetts’ schools; $18.5 million in Head Start grants; $20 million for early literacy initiatives; $3 million in genocide education grants; $1 million in grants to prevent hate crimes in the Commonwealth’s public schools; $117.5 million to provide free community college access to students seeking their first baccalaureate degree; $80 million in financial aid support for Massachusetts residents attending state universities; $65 million to increase rates for early education and care providers; $127 million in operating support for the MBTA; $60 million for MBTA capital investments; $36 million for an MBTA workforce safety reserve; $20 million to implement a low-income fare program at the MBTA; and BUDGET | SEE PAGE 15 Local students graduate from UMass Amherst A pproximately 7,000 students received bachelor’s degrees in over 100 majors at the University of Massachusetts Amherst’s Undergraduate Commencement on May 18, 2024, at the McGuirk Alumni Stadium. Students from Revere graduating were the following: Joseph Anthony Contardo, Jennifer G. Costa, John Courtney, Ronald DiBiasio Jr., Shaylin Elisabeth Groark, Zachary Amar Kesbia, Kunal Keshar, Gianna Rose Macone, Karl Paul Moise, Nyley Kendra Moise, Gina Giovanna Pasquale, Matthew James Roscoe.
15 Publizr Home