Using a 529 plan to save for a child's education comes with a lot of advantages. All earnings generated by the after-tax investments are tax-free for qualified educational expenses, multiple plans are available in each state, contribution limits are high, and they can be handy estate-planning tools, too. But there's one big drawback: What if your child doesn’t use all the money or even any of it for education? [Read more...]
Nancy J. Winter, CPA – Can You Claim Head of Household?
For IRS purposes, a head of household is generally an unmarried taxpayer who has dependents and paid for more than half the costs of the home. Claiming this status can lead to a lower taxable income and greater potential refund than the single filing status, but to qualify, you must meet the following criteria. [Read more...]
Nancy J. Winter, CPA – 2022 & 2023 Capital Gains Tax Rates
The federal income tax rate that applies to gains from the sale of stocks, mutual funds or other capital assets depends on how long you held the asset and your taxable income. Gains from the sale of capital assets that you held for at least one year, which are considered long-term capital gains, are taxed at either a 0%, 15% or 20% rate. [Read more...]
Nancy J. Winter, CPA – How Soon Can You File Your Tax Return
The IRS has announced that the nation’s tax season for individuals will begin Monday, January 23, 2023 and reminded taxpayers who are claiming certain tax credits their refunds won’t be available until the first week of March. [Read more...]
Nancy J. Winter, CPA – 2023 Standard Mileage Rates
The Internal Revenue Service has issued new standard mileage rates for operating an automobile for business, charitable, medical or moving purposes for 2023. Beginning January 1, 2023, the standard mileage rate is 65.5 cents per mile for business use (up from 62.5 @ 7/1/22 and 58.5 from 1/1/22 – 6/30/22), 22 cents per mile for medical and moving mileage (up from .18 from 1/1/22 – 6/30/22), and 14 cents per mile for charitable organization mileage (this rate is unchanged). These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. [Read more...]
Merry Christmas from Nancy J. Winter, CPA!
Nancy J. Winter, CPA – The RMD Deadline of Dec. 31 is Fast Approaching
An individual retirement account, more commonly referred to as an IRA, is a good place to save for your retirement. Once you reach a certain age, though, you’ll have to start taking a minimum amount out of your account each year, called a required minimum distribution (RMD). These rules apply not just to IRAs but also to 401(k), 403(b) and other retirement plans. Roth IRAs are not subject to RMDs, but Roth 401(k)s are. [Read more...]
Nancy J. Winter, CPA – Your December Money Checklist
Whether you’re getting together with family, enjoying some time off, or preparing for the New Year, the holidays are a great time to reflect on the past year. This can include evaluating your finances as well. Following is a financial checklist you can use to help you stay on track. [Read more...]