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A Roth conversion can be advantageous for retirees looking to manage tax burdens, control RMDs, and create a more flexible income source in retirement. The key advantages include: Reduced Future Tax Burden: By converting to a Roth IRA, retirees can pay taxes on their retirement savings at today’s rates instead of potentially higher future tax […]

Once you reach the age of 73, you are obligated to take annual Required Minimum Distributions (RMDs) from your retirement accounts. The calculation of your RMD involves dividing the value of each Traditional IRA by a life expectancy factor set by the IRS. It is necessary to compute the RMD for each individual IRA, but […]

The fundamental principle governing the taxability of funds received from the resolution of legal disputes, including lawsuits, adheres to Internal Revenue Code (IRC) Section 61. This section stipulates that all income is subject to taxation unless specifically exempted by another section of the code. IRC Section 104 provides an exemption from taxable income concerning lawsuits, […]

Tax matters can be as intricate as a spider’s web, with various threads entangling unsuspecting individuals. Among the intricacies lie two distinct concepts that are often misunderstood or confused – the Injured Spouse and Innocent Spouse provisions. In this blog post, we’ll shed light on these terms, explore their differences, and clarify when each may […]

In 2024, the Internal Revenue Service (IRS) is set to launch a no-cost tax filing initiative, which will be piloted in 13 states during the upcoming filing season. This move toward free online tax filing has the potential to reshape the tax-filing process for millions of Americans. Four states, namely Arizona, California, Massachusetts, and New […]

Recently, the Internal Revenue Service (IRS) announced a large increase in the annual limit that people may contribute to health savings accounts (HSAs). Families will be able to make an HSA contribution of up to $8,300 starting in 2024, while individuals can make an HSA contribution of up to $4,150. In comparison to the prior […]

Owe taxes to the IRS?

If you owe taxes to the IRS and you are unable to pay, it can be a stressful and overwhelming situation. However, it’s important to understand that there are options available to you. File Your Tax Return on Time First and foremost, it’s important to file your tax return on time, even if you can’t […]

Form 1040 Tax Credits

The Form 1040 is the primary form used by taxpayers to report their annual income and tax liability to the Internal Revenue Service (IRS), and it is important to be aware of the various tax credits that may be available to claim on it. Tax credits are deductions from the amount of taxes owed to […]

The IRS this week announced higher federal income tax brackets and standard deductions for 2023 amid skyrocketing inflation. For the tax year 2023, the agency raised the income requirements for each group. According to inflation adjustments issued by the agency on Tuesday, individual income over $578,125 and married couples’ income over $693,750 would be subject […]

For the final six months of 2022, the Internal Revenue Service announced an increase in the optional standard mileage rate. Optional standard mileage rates can be used to calculate the deductible costs of using a car for business and certain other activities. The normal mileage rate for business travel will be 62.5 cents per mile […]