Documents about Individual retirement account IRA.getty Effective January 1, 2023 if you are age 70-1/2 or older, you can distribute up to $50,000 from your traditional IRA directly into a charitable remainder trust or gift annuity. The distribution will be excluded from your income, but if you are age 73 or older it will nonetheless More
Close up of man with calculator getty For many Americans, tax season is as exciting as watching paint dry and as tedious as picking weeds in the garden. The best or worst moment is finalizing the calculations that determine whether you get a refund or a tax bill. Here are some tips on how you More
A businessman is trapped in his glass office by a surplus of discarded ideas on papergetty If you’re a regular reader, you were likely expecting a reminder about filing for an extension during tax season. If I had to guess, you thought it might pop up in April—not at the beginning of March. I’m doing More
MANHATTAN, NEW YORK, UNITED STATES – 2019/11/14: Immigration Court building entrance at 26 Federal … [+] Plaza in New York. (Photo by Erik McGregor/LightRocket via Getty Images)LightRocket via Getty Images An appeal of a Tax Court decision by a taxpayer who was found by the Tax Court to owe $90.86 should have an interesting story… More
A stock photo of a Red Audit stamp on a 1040 US individual income tax return. Photographed at 50mp … [+] with the Canon EOS 5DSR and the 100mm 2.8 L lens. getty The rules for substantiation of charitable deductions are very strict with extra layers when a donor advised fund or property donations are… More
Topline Home prices, which have been shooting up since last year, grew at a slower pace in April, showing signs of a potential cool down in the red-hot housing market, according to new data from S&P Case-Shiller on Tuesday. Home prices are up significantly from last year but could cool by later in 2022 thanks… More
Closeup of Form 1099-NEC, Nonemployee Compensation. The IRS has reintroduced Form 1099-NEC as the … [+] new way to report self-employment income instead of Form 1099-MISC as traditionally had been used. getty Stop the presses. Reports are in that tax compliance is more challenging for “independent workers” than for W-2 employees. The Independent Economy Council… More
If you own any Treasuries, take a grim look at what’s left after inflation and taxes. Inflation has already crossed the 6% mark. Are we going to see 7%? What does that do to savers? My answers are “Yes, soon” and “They get slaughtered.” The inflation rate, as measured by the one-year gain in the… More
Is it better to make pre-tax or Roth contributions to a 401(k)? getty Should you make after-tax Roth or pre-tax contributions to your 401(k)? Roth accounts can be powerful wealth-building tools. But paying tax early doesn’t always make sense, especially for taxpayers with significant income. Here’s when to consider pre-tax vs Roth 401(k) contributions. Quick… More
Year-end financial and tax planning is especially important for the millions of employees in the … [+] United States who have stock compensation getty When the Santa hats, holiday lights, and Christmas movies come on, it’s time for year-end financial and tax planning. This is especially crucial for the millions of employees in the United… More
Ecuador’s newly sworn-in President Guillermo Lasso. He allegedly transferred assets to trusts in … [+] South Dakota in 2017 amid reports that questioned his interests in a bank in Panama. (Photo by Cristina Vega RHOR / AFP) (Photo by CRISTINA VEGA RHOR/AFP via Getty Images) AFP via Getty Images In recent decades, South Dakota has… More
Ask Larry Economic Security Planning, Inc. Today’s column addresses questions about how even with the deeming rules, it can still be possible to receive only retirement benefits before later spousal benefits, survivor’s benefit rates is the record holder dies before claiming and how the WEP and the GPO work. Larry Kotlikoff is a Professor of… More
Ask Larry Economic Security Planning, Inc. Today’s column addresses questions about the rate of reduction for filing less than 12 months before full retirement age (FRA), eligibility for benefits based on an ex’s record and how and when delayed retirement credits (DRCs) are applied when filing after FRA. Larry Kotlikoff is a Professor of Economics… More
Most families with children are eligible for advance payments of the 2021 Child Tax Credit. getty Some 36 million families are eligible for advance payments of enhanced child tax credits for 2021, and the Internal Revenue Service has launched two new online tools to help taxpayers navigate this tax law change. There’s a Child Tax… More
If your uncle, best friend or bank loans you money, is it taxable? Nope, not if it’s a real loan. But the loan or income distinction lands many people in trouble with the IRS. Besides, interest rates on risky loans like litigation funding and pre-IPO stock are high, and you might not be able to… More
