The government requires distributions from certain retirement accounts to ensure taxes are eventually paid on these accounts that have enjoyed tax-deferred growth. The RMD is the minimum amount you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), and 457(b) …
To make a federal 1040 or estimated tax payment to the U.S. Treasury on-line you’ll go to irs.gov/payments. Payments made from your bank account through Direct Pay are free and secure. There is no sign-in required and you can change or cancel within 2-days of the scheduled payment. To make a payment to the California …
How do I pay my Federal and State balance due or estimated tax payments? Read More »
Tax authorities are required to notify you of the smallest adjustment to your federal or state tax liability and any subsequent payments or refunds. A notice of refund adjustment letter from fed or state is only an action item to the taxpayer if the tax authority has recognized an underpayment and is asking for more …
403(b) – Salary reduction retirement plan also known as a tax sheltered annuity for public school employees, tax exempt organizations, and religious organizations. 401(k) – A corporate retirement plan where employees can contribute a percentage of their salary annually. This plan is a “qualified plan” so the employee contribuitons are exlculded from gross income for …
What is Life Insurance? Life insurance is a contract between an insurance company and a policy owner that promises to pay a specified amount of money to one or more beneficiaries when the policyholder dies. The policyholder will typically pay the premium to the insurer during their lifetime in exchange for the beneficiary’s payout. Why …
The Oregon College Savings Plan A “Qualified Tuition Program” or “529 Plan” is a state-sponsored investment plan that allows a taxpayer to save money for a beneficiary’s education expenses. The 529 plan offers tax-free growth on savings and tax-free withdrawals for qualified expenses. Some states also offer annual tax credits or deductions related to the …
To claim a deduction for charitable donations on your taxes, you must have received nothing in return for your donation, and you must itemize deductions on your tax return by filing Schedule A form 1040. This deduction can be taken on your Federal and/or State tax return and includes the donation of cash and household …
How do I record my household goodwill or other charitable donations? Read More »
An IP PIN (Identity Protection Personal Identification Number) is a six-digit number issued by the IRS to a taxpayer that prevents someone else from fraudulently filing a tax return. The IP PIN helps the treasury verify a taxpayer’s identity when they file an electronic or paper tax return. https://youtu.be/YhfSZuwGrlY If you are a confirmed victim …
(IP PIN) Identity Protection Personal Identification Number Read More »
A QCD (Qualified Charitable Distribution) is an otherwise taxable distribution from an IRA (excluding active SEP and SIMPLE) owned by an individual who is age 70.5 or over that is paid directly from the IRA to a qualified charity. Can I make a QCD? Many IRAs are eligible for QCDs – Traditional, Rollover, Inherited, inactive …
The Treasury Department has revealed which cars will be eligible for the new electric vehicle tax credits available under the Inflation Reduction Act. Under the new rule, effective for the 2023 tax year, consumers can receive up to $7,500 back in federal tax credits on eligible vehicles depending on where the EV’s battery components and …