March 27, 2018
How much (if any) of your Social Security benefits are taxable depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits.
When taxpayers can defer their non-Social Security income from one year to another, such as by taking individual retirement account (IRA) distributions, they may be able to plan their income so as to eliminate or minimize the tax on their Social Security benefits in a given year. However, the required-minimum-distribution rules for IRAs and other retirement plans have to be taken into account.
Individuals who have substantial IRAs and who either aren’t required to make withdrawals or are making their post-age-70.5 required minimum distributions (but are not withdrawing enough to reach the Social Security tax threshold) may be missing an opportunity for tax-free withdrawals. Everyone’s circumstances are different, however, and what works for one person may not work for another.
If you have questions about how these issues affect your specific situation, or if you wish to do some tax planning, please give this office a call.
Beginning in 2014, the Affordable Care Act, also known as Obamacare, imposed what a “share-responsibility payment” on taxpayers who did not sign up for minimum essential health coverage. This payment is essentially a penalty for not being insured.
If you trade cryptocurrencies like Bitcoin you are required to report the transactions for tax purposes.
The IRS wants its cut and you may not know it. Call our office for assistance. Learn more in the video below.
Just a reminder that the due date for 2017 tax returns is April 17, 2018! There is no penalty for filing late if you are receiving a refund. However, it is quite a different story...