Your best audit defense Tip Category: Deductions The IRS is being very public about increasing the review of tax returns. The best defense for you is to be prepared before it happens. Here are some suggestions: The one-two punch To prove your deduction, most auditors look for two key documents: receipts and proof of payment. …
Author: Velisa Bookkeeping Services LLC
Time to Reconsider Municipal Bonds
Do you know the benefits of municipal bonds? Here is what you should know. Tip Category: Your Income Everybody likes getting something for free, and taxes are no different. If you invest in securities such as municipal bonds (munis) or municipal bond funds, you can generate tax-free interest income. Here is what you need to …
Tax Efficient Retirement Requires Planning
Large retirement account balances can cause tax problems Tip Category: Planning Putting off distributions and holding assets in your retirement accounts as long as possible may seem like a good idea, but waiting too long can cause a major tax problem. When you reach age 73, the trigger requiring minimum distributions (RMDs) from qualified retirement …
Hike in Social Security Benefits Announced for 2024
How much you pay and checks received are all going up! Tip Category: Retirement The Social Security Administration announced a 3.2% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2024, a big drop from last year's increase of 8.7%. The increase is based on the rise in the Consumer Price Index …
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How to Maximize Your Social Security
What every taxpayer should know You can start receiving Social Security benefits when you turn 62, but you can give yourself a raise of 8% per year if you put it off. Tip Category: Retirement You can begin receiving your Social Security retirement benefit as early as age 62. But by putting off your benefit …
Employee Tax-Free Income
Take advantage of all tax-free ideas. Many of them come from your employer. Here are a few to consider. Tip Category: Planning While most income received from your employer quickly ends up on a W-2 tax form at the end of the year, here are some common employee benefits that often avoid the impact of …
Understanding Tax Terms: Depreciation Recapture
Here's an area of the tax code that surprises many with a larger tax bill. Tip Category: Miscellaneous One of the more unpleasant surprises that can hit a taxpayer occurs when you sell personal property, rental property or assets from your small business. This tax surprise is often associated with depreciation recapture rules. Defined Depreciation …
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Reminder: Third Quarter Estimated Taxes Due
Now is the time to make your estimated tax payment Tip Category: Planning If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The third quarter due date is now here. Due date: Friday, Sept. 15, 2023 You are …
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Understanding Tax Terms: Unearned Income
Not all income is the same in the eyes of the tax code Tip Category: Your Income The tax code uses jargon that can be confusing for the unwary. One of them that impacts most of us is the term unearned income. Unearned income is often defined as anything that is not earned income. If you …
Oops. An IRA Contribution Error
Tip Category: Retirement If you contribute too much money into your IRA during the year, how do you correct the problem without facing a tax penalty? Here are some tips. Remember the annual limits 2023 Annual IRA contribution limits $6,500 per individual $7,500 per individual if age 50 or older ($1,000 catch up provision) This …
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