BREAK IN – Corrected Tax forms for us are clear so far and we likely will not have more later in the season!
Green Lights to file! – Literally so focused on the findings almost forgot to tell you!!
With enough returns under our belts to see themes we wanted to bring them to your attention as we hit the finish line …. Well as we get closer to the finish line at least….
Just as a reminder, we want a copy of your Tax Return if possible… the number of times we source our return for information and planning throughout the year grows every year due to complexity of the tax law and all of our personal complexities as well!
Key personal income tax mistakes and missed deductions we have seen this year:
529 Distributions showing Taxable – If the distribution was used appropriately (you would know if it was not) it SHOULD NOT be taxable – Check the entries – new wording is causing problems – Make sure your distributions are not adding to our taxes !
Lack of Basis/Everything has a Basis – If you see something on your return showing a 100% gain, there are very limited situations where there is a zero basis – Again you would know if it was – This is easy to miss, and as far as we know, NOT adjusted by the IRS … if you forget to report the basis – This results in Extra Taxes paid that will likely never be corrected! Ouch
Qualified Distributions – If you rolled over your 401k to an IRA or Distributed some/part/all of your RMD to a charity – MAKE SURE it is not coded taxable -Again from what we have seen in the returns, this is easily missed and could create a tax bill that is never reconciled by the IRS! Ouch # 2!
While today is a Friday…as a courtesy for those DIY folks and the many professionals we are in contact with … we stay near on the weekends rolling to the finish line just in case you need documents! Next weekend is a Holiday weekend and with a college viewing trip, may cause delays, but we will be able to help if needed!
Have a Great Weekend – Talk Next Week!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the Uncle Sam NO picture. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
