Doing your own tax return can save you the preparation fee of a few hundred dollars for an individual tax return. However, if you do them incorrectly, you could cost yourself thousands of dollars. If you file an incorrect tax return, you can be in for some major trouble and expense, you can pay more […]
What to Know Before Taking a Distribution From Your Retirement Account
A couple that makes $75,000 a year took $50,000 out of their retirement plan to cover some expenses they had that year. When the couple took the money out of their retirement plan, the insurance company told them to withhold 15% for taxes and said that amount would cover the taxes and early withdrawal fees […]
Should you Incorporate?
“To incorporate or not to incorporate: that is the question.” Running a business can be overwhelming, especially when it comes to matters such as incorporation. Because Shakespeare is no longer available, and not a tax professional, we would be happy to discuss these issues with you. With the new tax bill in effect now, we’d […]
Should you contribute to a Roth IRA or a Traditional IRA?
Should you contribute to a Roth IRA or a Traditional IRA? Like many questions having to do with taxes, the answer is, “it depends.” We know, it’s frustrating to hear “it depends” when you simply want a black and white answer. Unfortunately, the world is more gray than black and white. The good news is […]
Selling your Rental Property? Consider These Factors First
Selling your Rental Property? Consider These Factors First A client comes in and hands us a settlement statement from a Sale of Rental on a house. They had to take $5,000 to closing and were upset because of the money they lost on the rental. To make matters worse, we had to deliver the unfortunate […]
The New (2018) Tax Brackets
In 2017, Congress passed the most significant tax reform since 1986. A specific change to the law is in the Marginal Tax Brackets, or what most people call “Tax Brackets.” Tax brackets are ranges of incomes taxed at a given rate. The new tax bracket rates came into effect on January 1, 2018 and guess […]
Income Tax Projections
Income Tax Projections His pulse raced, his hands and brow dampened, and he squirmed in his chair as he sat across from his accountant. How could I owe $30,000 to the IRS? There had to have been some mistake. He couldn’t possibly owe the IRS $30,000. Unfortunately, this happens more often than you might think […]
The New Tax Bill: When it Comes into Effect
With all the new tax changes coming, you might be wondering when they will come into effect. The new tax bill came into effect on January 1st, 2018. Therefore, any income you earn starting on January 1st, 2018 will be under the new bill and taxed at the new rates. The changes, however, do not […]
What’s new in 2013?
The American Taxpayer Relief Act of 2012, which was signed on January 2, 2013, did not make major changes in the tax rules governing most Americans. But it did create significant tax increases for high-earners. The thresholds identifying “high-earners” differ from one tax provision to the next, leaving many who don’t consider themselves wealthy exposed […]
Take another look at HSAs (health savings accounts)
Year after year, health care and medical insurance costs outpace inflation. One survey, for example, found that health insurance premium costs are growing at five times the rate of wages. It’s little wonder, therefore, that business owners and employees are scrambling for ways to curtail health care expenses. In an effort to address this dilemma, […]