Year-end Tax Tip. Avoid taxes on an #RMD with a #charitabledonation. Seniors who have a traditional 401(k) or #IRA account must take a required minimum distribution each year once they reach age 70 1/2. Those who don’t need this money for living expenses may want to consider having it sent directly to a charity as a qualified charitable distribution. “If you take it out as a qualified charitable distribution, it doesn’t increase your adjusted gross income,” says Mike Piershale, president of Piershale Financial Group in Crystal Lake, Illinois. “It can also hold down the amount of# that is taxed.”
Tag Archives: National Taxpayer Advocate
Simple Ways to Save Money #4
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—anything from a down payment for a house to a vacation—then figure out how long it might take you to save for it.
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Year-End Tax Tip
Year-end Tax Tip. Make 401(k) and HSA contributions. People can make tax-deductible contributions to traditional IRAs up to April 15 of next year. However, the door closes on Dec. 31 for 401(k) and health savings account contributions.
I Wonder…?
You can always deduct standard business expenses, but can you deduct hidden and unusual expenses to reduce your tax burden? With imagination and proactive tax planning, the answer to that question is: “Yes you can!”
Common Sense…
IF YOU THINK YOU’RE PAYING TOO MUCH IN FEDERAL INCOME TAX, YOU PROBABLY ARE! The old paradigm was “Those who can afford the expense, hire Enrolled Agents and Tax Consultants. The new paradigm is, is that you really can’t afford not to. We seek a second opinion on legal and medical matters, but not so much in the area of income tax, the largest burden your government places upon you…Why?
Simple Ways to Save Money #3
Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals.
Tip 3: Now that you’ve made a budget, create a savings category within it. Try to put away 10–15 percent of your income as savings. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment and dining out.
Tip: Considering savings a regular expense, similar to groceries, is a great way to reinforce good savings habits.
Thomas Vincent Cuomo, EA, CTC – Hobby or Business?
Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies.
Taxpayers must report on their tax return the income earned from hobbies. The rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions taxpayers can claim for hobbies. Here are five tax tips to consider: Continue reading
Who Will Prepare Your Tax Return?
As the start of tax filing se
ason approaches, the Internal Revenue Service is reminding taxpayers to start thinking about who will prepare their 2016 federal tax return. The IRS will begin processing tax returns on Monday, January 23. Many software companies and tax professionals will accept and submit tax returns before the IRS systems open on January 23.
In 2016, more than 131 million individual and family tax returns were e-filed, the most accurate, safest and easiest way to file. The rest of the returns received by the IRS, numbering over 19 million, were either prepared on a computer and printed or prepared by hand then mailed.
Is This You?
The National Taxpayer Advocate Wants to Hear from You!
Olson to Hold Public Forum on Taxpayer Service Needs in Baltimore on May 13
WASHINGTON — National Taxpayer Advocate Nina E. Olson and Sen. Ben Cardin, a member of the Senate Committee on Finance, will hold a public forum to discuss what taxpayers want and need from the IRS to comply with their tax obligations. Sen. Cardin is also the ranking member of the Senate Committee on Foreign Relations.
The public forum will be held on Friday, May 13, at 10:30 a.m. at the University of Maryland Francis King Carey School Of Law in Baltimore.
Members of the public and the media are invited to attend.