Article Highlights Except for distributions from Roth IRAs, pension distributions are generally taxable. Pension distributions can increase the tax on your Social Security benefits. Pension distributions can increase your marginal tax rate. IRA-to-charity transfers are allowable in 2013. An individual may begin withdrawing, without penalty, from his or her qualified … [Read more...] about Planning Pension Distributions
Don’t Get Scammed, They Are Very Clever
Article Highlights Scammers disguise e-mails to look legitimate. Legitimate businesses and the IRS never request sensitive personal and financial information by e-mail. Don’t become a victim. Stop – Think - Delete While you are thinking about the start of the football season, your children’s soccer games, and the no- too-distant holiday season, the scammers are out there … [Read more...] about Don’t Get Scammed, They Are Very Clever
What’s Best…Tax-free or Taxable Interest Income?
Article Highlights Interest earned from states’ and local governments’ general purpose obligations that are generally tax-exempt for federal purposes. Earning tax-exempt interest may not put the most after-tax dollars into your pocket. Tax-exempt interest is not subject to the new 3.8% surtax on net investment income. Tax-exempt interest is still treated as income for the … [Read more...] about What’s Best…Tax-free or Taxable Interest Income?
Understanding Tax Terminology
Article Highlights Filing status can be single, married filing jointly, married filing separately, head of household, or surviving spouse with dependent child. Adjusted gross income (AGI) is the sum of a taxpayer’s income minus specific subtractions called adjustments. Modified AGI is the regular AGI with certain adjustments and exclusions added back. Taxable income is AGI … [Read more...] about Understanding Tax Terminology
Make the Most of Your Deductions
Article Highlights Bunching allows you to maximize your itemized deductions in one year and take the standard deduction in the next. The medical expense threshold for deductibility has been increased to 10% of AGI for individuals under the age 65. You have the option of deducting the larger of: (1) State and local income tax paid, or (2) state and local sales tax paid … [Read more...] about Make the Most of Your Deductions