The 5-Year Roth IRA Rule
Most people know that Roth individual retirement accounts (IRAs) have a “5-year rule,” that is, you must have owned your Roth IRA for at least 5 years and be over the age of 59.5 years to withdraw earnings tax-free during…
To Extend or Not to Extend?
It seems every year most people want to have their taxes filed by April 15th, and nobody wants to file an automatic, no questions asked extension till October 15th. It seems to us as many feel they are doing something…
The Confusion of Mortgage Interest Deductibility
When clients provide me with a mortgage interest statement, they assume that all of the mortgage interest will be tax-deductible. This assumption was somewhat true under the tax laws before 2018, but since 2018, it will be true only on…
Charitable Giving in Light of the New Tax Law
There is a new tax law that has changed everything for a while. One of the biggest changes is the new expanded standard deduction and the elimination of many itemized deductions. Before we discuss these changes, a good understanding of…
The Tax Withholding Paradox
It is true that most people will see their income tax rates lowered in 2018, but is it possible that despite having their rates lowered, some may actually owe more in income tax? The answer, unfortunately, is yes, given that…
The Most Underused Benefit in the IRS Tax Code
The IRS Tax code is not typically known for offering a free lunch. However, there is one type of account out there that many people have heard of but don’t fully understand how beneficial it can be. The Health Savings…
Tax Preparation Versus Tax Planning
When having your taxes prepared—whether by using a tax program or a tax preparer—the expectation is to end up with the lowest tax bill possible. Unfortunately, such an expectation may be inaccurate. Most tax programs and tax preparers take data…
Minimize Stress During Tax Time—File an Extension!
The Internal Revenue Service (IRS) allows taxpayers to file for a 6-month extension if they need more time to prepare their tax returns. You can obtain a tax extension for any reason—the IRS grants them automatically and without penalty as…
The IRS Will Not Call You…
I began contemplating this article after two of my tax clients (both widows) called me to ask if they should reply to messages on their answering machines that they owed the IRS taxes. Two more clients, both married couples, received…
To Extend or not to Extend
By Bob Boehner It seems every year most people want to have their taxes filed by April 15th and nobody wants to file an automatic, no questions asked, extension till October 15th. I wonder, do you feel you are doing…