September 29, 2016
Early Withdrawal from a retirement account

Early Withdrawal from a retirement account?

Thinking of taking an early withdrawal from your retirement account? Here’s what you need to know before you pocket that cash. According to the IRS, taking money out of your retirement account before age 59 ½ is not something to take lightly. Doing so can land you in hot water come tax time, triggering additional taxes. You’ll also lose some of you reserves to penalties. Here are some things to keep in mind: Early Withdrawal Tips Report all early withdrawals to the IRS, unless you are rolling the money over into another type of retirement account. Not reporting the withdrawal be a costly mistake you’ll end up paying for. Consult a qualified tax professional or your plan’s administrator if you are unsure. A generally rule of thumb is that you will also pay a 10% penalty on top of your income taxes on any early withdrawal. However, there are some exceptions to this rule, depending on your retirement plan or account. Again seek advice from your plan’s administrator or a tax profession to know which rules apply to you. Additionally, if you make an early withdrawal, you may need to file Form 5329. This from reports your early withdrawal as income for the […]
April 15, 2016
Tax Tip: Rules for Home Office Deductions

Tax Tip: Paying your Taxes; Things to Remember

Tax Tip: Paying your Taxes; Things to Remember We are nearing the deadline and taxes are at the top of mind for many of us.  Here are several tips you should know about paying your taxes. Tax Tip: Paying your Taxes; Things to Remember Never send cash. The IRS has a phone app which lets you pay your taxes with a debit or credit card. The app is called: IRS2go. You can also pay your tax bill using the IRS Direct Pay online version. Many tax preparation software will allow you to make payments for your tax bill directly in the software. If you pay using a debit or credit card, the processing fee which you will be charged MAY be deductible on your next year’s return. The IRS will accept a personal check; cashier’s check or money order. NEVER CASH! If you pay using a check, send Form 1040-V with the check. Even if you can’t pay your tax bill in full, file your taxes on time.   Tips courtesy of IRS Website