by Leif Jensen | Jan 25, 2023 | Money Management, Taxes |
In determining whether converting a traditional IRA to a Roth IRA benefits a particular taxpayer’s situation, many additional factors must be weighed. These include the following. The taxpayer’s present income tax rate versus the rate expected during retirement — If...
by Leif Jensen | Jan 24, 2023 | Taxes |
If a taxpayer has made nondeductible contributions to traditional IRAs in past years, the distribution of those amounts is not subject to taxation, either on the taxpayer’s return or on their heirs’ returns. If a distribution is made from an IRA that consists of...
by Leif Jensen | Jan 23, 2023 | Taxes |
Form W-4V is relatively short, with few fields to complete, apart from showing the individual’s name, address, social security number, and claim or identification number. It gives the individual the option to start or stop withholding from social security or similar...
by Leif Jensen | Jan 18, 2023 | Taxes |
Before the government enacted the Social Security Amendments of 1983, social security income was not taxable. The legislation’s enactment created the need to withhold federal income tax. Form W-4V, (Voluntary Withholding Request), allows benefit recipients to have...
by Leif Jensen | Dec 13, 2022 | Taxes |
The IRS has a Free File program which began in the mid-1980s, it lets individual taxpayers with adjusted gross incomes of $73,000 or less use free commercial tax software to prepare and e-file their returns. No state returns. Its usage is anemic. Only about 3% of...
by Leif Jensen | Dec 12, 2022 | Taxes |
Filers who report health premium credits are juicy audit targets. I have a client who graduated college and started his career, his return was audited because he got insurance coverage under his parent’s exchange policy. But he had no premium coverage listed on his...
