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Is It Really Allowed – Making a Non-Deductible IRA Contribution Followed By a Roth Conversion?

Understanding the Roth Conversion of previous non-deductible IRA contributions. Also known as the Back Door Roth contribution.

Withholding Tax Without Income?

Did you know you can have tax withheld from a distribution from an IRA without having to recognize income from the IRA?

Do You Need a Friend at the IRS?

If you need help dealing with the IRS, the Taxpayer Advocacy Service may be just the ticket. They’re really your only friend at the IRS.

IRS Penalties – 8 Facts You Need to Know

Just a few facts you should know about the IRS penalties that may apply to you if you do not file or do not pay your taxes.

How to Get Your Prior Year Tax Return Information From the IRS

If you need your information from a prior year’s tax return, here’s how the IRS suggests that you can get this information.

Avoid Errors In Your Tax Filing

Common errors in tax filing that you can avoid easily by paying attention to detail and using available software tools.

Property Flipping Gains Deemed Ordinary Income, Not Capital Gains

Property flipping activities, while they may prove lucrative to some practitioners, may result in higher taxes than anticipated.

Your Appeal Rights at the IRS

If you’re in disagreement with a result that the IRS has given you, you need to know what rights you have for an appeal.

When a 60-day Rollover is Not a 60-day Rollover

Review of a PLR that provides relief for a taxpayer who did not complete a rollover within the required 60 days.

Avoiding the Underpayment Penalty with Form 2210 – Annualized Income

If you have sporadic income throughout the year, using Form 2210 to explain your annualized income may help avoid penalties.

What to do When You Receive a Notice From the IRS

What should you do when you receive a notice from the IRS? It’s important to pay attention to what they’re asking for, and take action.

16 Ways to Withdraw Money From Your 401k Without Penalty

There are several ways you can withdraw money from your 401k without penalty.

IRS warns of gift card scam

A new scam is making the rounds – a caller impersonates an IRS agent and demands payment in the form of a gift card. Here’s what to look out for.

Should I Itemize or Use The Standard Deduction?

Taxes (Photo credit: Tax Credits) As you prepare your tax return, you have a decision to make about your tax deductions – you can choose between itemizing and using the standard deduction.  But how do you choose? The Standard Deduction is just what it sounds like – a standardized deduction that you can choose to utilize by default, and you don’t have to do a lot of recordkeeping through the year in order to use the the standard deduction.  In order to itemize deductions, you need to save receipts from various deductible expenses through the year, and use those to prepare your itemized return. Oftentimes it is a foregone conclusion, once you understand the differences between itemizing and the standard deduction. Standard Deduction vs. Itemizing: Facts to Help You Choose Each year, millions of taxpayers choose whether to take the standard deduction or to itemize their deductions.  The following seven […]

How a 401k Contribution Affects Your Paycheck

Do you know how a 401k contribution affects your paycheck? Your take-home won’t go down by the same amount that you defer into the 401k.

Don’t Forget the Saver’s Credit on Your Tax Return

The IRS provides a way to make your saving activities pay off more for you, by way of the Saver’s Credit. If you are eligible, it’s a great benefit.

Time for your paycheck checkup!

This time of year is a perfect time for a paycheck checkup to make sure that you are having enough tax withheld from your pay. Do it soon!

Your 401k and IRA in 2018

Recently, the IRS just announced the contribution limits for 401k plans (including 403b and 457 plans) as well as IRAs. Additionally, the IRS also announced changes to the income phase-outs for traditional IRA deductibility and Roth IRA eligibility. Let’s start with the 401k plans. For 2018, the IRS increased the contribution limits to $18,500, up $500 from $18,000 last year. The catch-up contribution for those age 50 or over remains unchanged at $6,000. $500 may not seem like much, but think of it this way – you get to give yourself a $500 raise! For those interested in maxing out their 401k plans in 2018, here’s the breakdown depending on whether you’re paid monthly, 24 weeks per year or 26 weeks per year. If you’re paid monthly, the contribution is $1,541.66. This brings you just eight cents under the $18,500 max annually. If you’re paid 24 weeks per year, then […]

Taxpayer Bill of Rights – Do You Know Your Rights?

Do you know your rights as a taxpayer? There’s a Taxpayer Bill of Rights, and you should become familiar with it. Know your rights!