Sometimes It’s the Little Things That Come Back to Bite You
Since they are only done once a year, the little things regarding the tax code are often overlooked or forgotten. In some cases, this can lead to unintended penalties and fines. As a sole proprietor, it’s not enough to just include a Schedule C on your personal tax return. Before January 31st, you must remember to complete and send 1099-MISC forms to anyone you paid more than $650 to last year, and transmit copies of those forms to an IRS office. But where do you get 1099-MISC forms and what information has to go on them? Among other things, you need to include the payee’s Social Security number and address. That’s the first problem. For many people that you might hire, such as a
Tax Season Is Here Again! Choose Apples or Oranges.
There are many ways a tax return can be done that are all OK with the IRS, but only one of those ways nets the largest refund! People need to understand this across America, and we talk about tax planning constantly. We blog, tweet, post, e-mail and on and on, yet we as an industry are not even getting 10% of the public to take on tax planning! The clients who do are often thrilled at the outcomes, and yet it’s just hard to get people to want to spend half the time that they spend planning their vacations on planning their own tax outcomes! (larger refunds would pay for those vacations!). Tax planners’ offices often don’t look like a franchise
“Don’t Let The Tax Tail Wag The Dog!” Can Be Bad Advice
In the “old days”, you went to the general store for your dry goods, the blacksmith for your horseshoes or tool repair and likely had your own cow and chickens for milk and eggs. Fast forward, you went to a lawyer to get a will, an insurance rep to get a policy and an accountant to get your taxes done. There was no internet, so information was something you had to gather and organize yourself. You would talk to a few co-workers, a family member, a mentor and then take actions based on the limited intel. Back then, you would sit with a financial advisor, and if they were a big deal they might have a stock ticker pumping out tape
The New Year Brings Some New IRA Tax Code Rules
Just before the end of 2019, the Setting Every Community Up for Retirement Enhancement Act, better known as the “SECURE Act”, went into effect as a new law. It brings another round of interesting changes to the U.S. tax code, but especially around the rules regarding Required Minimum Distributions (RMDs), which dictate when and how much people must withdraw from their retirement accounts to avoid tax penalties. Beginning Jan. 1, 2020, the new law pushes the age at which you need to start withdrawing money from your traditional IRA retirement accounts from age 70 ½ to 72. If you turn 70 ½ in 2019, you will still need to take your RMD for 2019, no later than April 1
Happy New Year!
As another year comes to an end, we wanted to take a moment to wish you a great 2020!
Taxes Are Due In
On Point Tax Group, LLC
Kennesaw, GA 30144
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