Tax season has come and gone, but that does not mean the planning stops! While much of your focus prior to April 18th may have been on making sure you get your tax return submitted properly, the focus can now shift towards some other items that can improve your financial well-being over the course of the rest of the year.
Believe it or not, we are only one month away from the tax filing deadline! With that in mind, we figured it would be beneficial to discuss some last minute 2021 tax planning ideas as well as one that could help you out when it comes time to file 2022 taxes.
Are you tired of hearing about taxes? You're not alone! Over the past year with all of the new government spending, talk of increasing taxes has been consistently present in the news-stream.
But regardless of how we feel about taxes, there are a lot of new and changing developments in this national conversation. So, let's dive in.
Required Minimum Distributions are on for 2021, but some of the rules have changed. Here's what you need to know now.
Financial planning is a huge part of what we do here at Creekmur Wealth Advisors, so it's no surprise that tax planning is one area we spend a lot of time working in. When I talk about tax planning I am not talking about filling out and submitting your tax return every April 15th. Filing your taxes is necessary, but it's reactive or backward-looking. Tax planning, on the other hand, is a forward-looking, comprehensive approach to reducing lifetime taxes and increasing overall after-tax wealth.
Ready or not - here it comes! Tax filing can be confusing and stressful. Here's a few things you can do to make this process a little smoother.
As tax time rolls around each year we all start getting the necessary documents for proper filing of our taxes. You're not alone if you find all of these important forms a little confusing! Besides the W-2 which is used to report wages, form 1099 is widely used for a variety of purposes. Here are the basics you need to know about this multi-functional form.
What you need to know.
When you reach age 70½, the Internal Revenue Service instructs you to start making withdrawals from your traditional IRA(s).These withdrawals are also called Required Minimum Distributions (RMDs). You will make them, annually, from now on.1
If you fail to take your annual RMD or take out less than the required amount, the I.R.S. will notice. You will not only owe income taxes on the amount not withdrawn, you will owe 50% more. (The 50% penalty can be waived if you can show the I.R.S. that the shortfall resulted from a “reasonable error” instead of negligence.)1
Many IRA owners have questions about the rules related to their initial RMDs, so let’s answer a few.
Are you aware of them?
The federal government offers some major tax breaks for older Americans. Some of these perks deserve more publicity than they receive.