A Hidden Tax That You Can Avoid Paying with Proper Planning

People who earn more than $91,000 a year ($182,000 for joint filers) and who are in Medicare Part B or Medicare Part D, or both, will face additional premiums, called income-related monthly adjusted amount (IRMAA). IRMAA “surcharges,” which is a replacement word for a tax, are based on income earned two years prior to the coverage year. A Read more about A Hidden Tax That You Can Avoid Paying with Proper Planning[…]

Tax Planning Surprise. Use a CRAT or CRUT to “Put Back” Your Stretch IRA Options for Non-spouse Beneficiaries!

As of Jan. 1, 2020, the SECURE Act requires the entire balance of a non-spousal participant’s inherited IRA account to be distributed or withdrawn within 10 years of the death of the original owner. The 10-year rule applies regardless of whether the participant dies before, on, or after the RMD (required minimum distribution) age at which Read more about Tax Planning Surprise. Use a CRAT or CRUT to “Put Back” Your Stretch IRA Options for Non-spouse Beneficiaries![…]

Know the Tax Consequences of Your Stock Trading

Don’t let your stockbroker off the hook when it comes to tax planning.  Many people work with brokers when they buy and sell stocks.  Many people now, because of the internet, also have become their own stockbrokers, doing their own research and trading on various platforms.  Whether you use a professional or do your trades yourself, you still Read more about Know the Tax Consequences of Your Stock Trading[…]

Did Your Withholdings and Estimated Tax Payments Equal Your Tax Due? Should It?

For people with just one or two W2s and perhaps a daycare deduction, getting the amount of tax paid into the IRS to come out correctly is easy enough and can be done within a 95% accuracy rate. The IRS gives the follow instruction: All taxpayers should review their federal withholding each year to make Read more about Did Your Withholdings and Estimated Tax Payments Equal Your Tax Due? Should It?[…]

IRS Has Backlog of 24 Million Tax Returns, with Some Refunds Held up for 10 Months or More

The Washington Post reports the following and its breathtaking (not in a good way). The Internal Revenue Service on Thursday scrapped plans to close one of its three remaining tax processing centers amid a backlash over an unprecedented accumulation of unprocessed tax returns that threatens to derail the 2022 tax filing season. IRS leaders announced Read more about IRS Has Backlog of 24 Million Tax Returns, with Some Refunds Held up for 10 Months or More[…]

Tax Planning and Estate Planning Are a Lot Alike, and Ignored By Most!

People try, but “adulting” is hard!  Kids, pets, job, relatives, friends, bills, medical problems, car problems, work problems all in the last day, so when I have time I will start tax planning.  Same as….so when I have time I will start estate planning, it’s just so too far down on most peoples’ day to Read more about Tax Planning and Estate Planning Are a Lot Alike, and Ignored By Most![…]