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 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 […]