December 14, 2016
If you are over age 70 and a half, the IRS requires that you take an RMD (Required Minimum Distribution) from your traditional IRA accounts. You must take the distribution by December 31st or you risk the assessment of a 50% penalty on the distribution!
If you turned 70 and a half in 2016, you have until April 1, 2017 to take your first distribution.
What happens if you have missed the deadline in the past? The IRS has a forgiveness program for those individuals who did not take the distribution. In this case, it is much better to tell the IRS you made a mistake than it is for them to find out about it later. Give us a call at 540-373-6589 and we'll help you out!
Do I still have enough to itemize?
Since before I can remember, taxpayers have had the option of reducing their income (to arrive at taxable income) by using either the standard deduction or itemized deductions. It was the one place on the tax return where most folks felt like the IRS granted them a little bit of favor…because you got to deduct whichever...
What’s going on with my exemptions under the Tax Cuts and Jobs Act (TCJA)?
Under the former law, which of course applies to the tax returns being filed for 2017, taxpayers can claim a personal exemption for themselves, their spouse (if filing jointly) and each qualifying child or relative. Each of these exemptions allowed taxpayers to reduce their taxable income by...
As we all know (if you don’t, I’m not sure what rock you’ve been sleeping under), Congress presented and the President signed in to law the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. This law amends the Internal Revenue Code of 1986.
This new law affects us all. No taxpaying person in the United States will escape these changes. For some of...