Category Archives: Tax Related

ES Tax Payment 3 for 2023 Due Next Week! Merger Helpers, Thanks for all the Help!! Newsletter Begins… Friday …

It is that time again…. Unlike last time, this was a full 90 days…yay

Electronic Payment of ES Taxes

Here is the IRS tax website link, which is very easy to make electronic estimated taxes. Be sure to follow the instructions carefully as there are a lot of different options for making payments to taxes, and be sure to carefully enter your personal information so the IRS knows it’s you.

We recommend you do this electronically if at all possible….

If you really need to pay via paper…

Here are the IRS ES Payment instructions pdf – the following Coupon is included in the instructions.

Special Thanks – Merger Helpers You are the Best

Clients, Friends, family and even a spouse (Mrs. was tossed under the verbal identification bus — better her than you guys- nice dinner payback- haha, not kidding, and an apology)

THANK YOU SOOOOO MUCH…

As mentioned Wednesday the Merger went spectacular…but we are still learning the ropes and you guys are bringing us up the learning curve quickly!

Two Suns Merging for those asking!

Newsletter Begins

Knowing my editor is a regular reader…. the Newsletter begins in full form this weekend…We have articles that hit the cutting room floor from last quarter and some great continued thoughts as well from last Quarter… let the creative juices flow!

Have a Great Friday, Weekend and Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

As expected (but were starting to worry) IRS FINALLY Punts on a hurried rule (Part of Secure Act 2.0) by pushing it out to 2026… Whew – Income Related Roth Mandate for Retirement Catchup is Pushed out…. Too Sketchy to Implement …

The Secure Act 2.0 signed into law at dark 30 in December 2022 included a very confusing, ambiguous, and unimplementable as written rule, that mandated incomes over certain levels would not be allowed to make tax deductible catch up contributions to pre-tax plans… i.e. 401ks…and if desired would need to contribute catch up contributions to Roth – After tax contributions…

Last Friday, August 25, 2034 at 2:41 PM the following email hit the cell inbox-

Sketchy Roth Mandate Pushed to 2026

As mentioned above the Secure 2.0 included a poorly written rule mandating an income thresh hold for pre-tax catch up contributions…..

Without getting into the weeds, the law was written so hurridly and sketchy, it was literally impossible to implement as signed.

The general consensus was either clarity or a punt… Thank goodness we received the latter Friday afternoon….

Not to worry, we have a good memory and will be on it in 2026, but for now the heat as expected, but starting to worry, if off! Yay

Have a Good “IRS Clarified” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Clients/Clients Only RMD (Required Minimum Distributions) Season comes early, Friday from Afar… Sharpening the Saw …

RMD’s Early this year

Being creatures of habit, (actually very rigid habit), we wanted to share a change in our regular scheduled programming this year regarding RMD – Required Minimum Distributions ….

Usually an October, November “Thing” this year we plan on doing most of the one timers next week… One timers are that large group that we make the distribution to meet Uncle Sam’s mandate only one solo transaction each year… New RMD folks we will be in touch too, but likely not next week!

Regularly RMD monthly distributors, no changes for us, all stays the same just like we normally do!

With the TDAmeritrade/Schwab Merger over Labor Day weekend, we thought it best to go ahead and take one more item off our plates before the end of the year run as well as the merger…

One last Hurrah – Saw Sharpening in a Cooler Climate with Friends and Family

With a Senior heading off to College and away from the nest… We are on one last trip before the school year begins…. A cooler climate was desired, and luckily found after a heat wave followed us…

Ahhhh…. today is a Friday, heading into a late July weekend… enjoy your day and your weekend…. Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

ES Tax Payment 2 for 2023 Due Next Week! Wow that was fast! … Cyber Reminder, The Summer Brings them out … Friday …

Every year this is the ES Payment that can easily slip by….

The reason is obvious in hindsight, but never as we cross the due date threshold…

It was only 60 days ago that we made our last payment….. Ahhhhhh

Electronic Payment of ES Taxes

Here is the IRS tax website link, which is very easy to make electronic estimated taxes. Be sure to follow the instructions carefully as there are a lot of different options for making payments to taxes, and be sure to carefully enter your personal information so the IRS knows it’s you.

We recommend you do this electronically if at all possible…. the mail is still having issues!

If you really need to pay via paper…

Here are the IRS ES Payment instructions pdf – the following Coupon is included in the instructions.

Cyber Reminder

Something about “Idle Minds….” Well, summer is in full force and so are the Cyber issues….

BE CAREFUL – Coming in the Newsletter – almost all Cyber problems come from a bad click…

Don’t Accidentally Clock on a bad link … Just Don’t Do it!

Have a Great Friday, Weekend and Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Modern Day “Saw Sharpened” … Newsletter Research Findings … Summer Friday …

With a few days out of the office …. that saying of “Sharpening the Saw” comes to mind… Think it speaks more to a solitude down time than we have in this day of technology and need to stay connected… but we get the point, and feel the saw has been sharpened, maybe in a more modern day sense….

Enjoyed catching fish, extra jogs and work outs… and even some movie nights with most of the gang….

The 15 year old even learned to drive a manual “Stick shift” – ouch to the back on the lack of smoothness … fortunately not hitting the roads ANYTIME soon.. not kidding here!

Newsletter Research Findings

While the exact data that was being searched for the next Newsletter (Business Tax Refunds resulting from ERC – Employee Retention Credits – causing a slow motion economic slowing due to remaining stimulus being burned off- wow- what a mouthful) WAS NOT FOUND YET -grrr… we did stumble onto some great IRS feeds via the bird site (Twitter) that we will keep in our pocket for future use… Even AI could not help us, go figure (You mean it doesn’t know EVERYTHING- digressing with a full caffeine intake this am)

Ahhhhh….but TODAY is still a Friday, heading into a drive back home weekend and early summer “Pools are open” weekend!

Enjoy and talk next week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Form 5498 … Sneaky late arriving tax form can cause confusion … Reminder of purpose of said sneaky 5498 …

Had a great Post about rates garnered from an updated Graphic from our friends at Visual Capitalist ready… it even is the starting point for a group of articles in our next Newsletter… BUT…this sneaky tax form causes lots of confusion and a late week email reminded….so watch for the Rate Post Wednesday – and a shortened Memorial Day Weekend post Friday with family travels next week! So lets go!

With a reminder email hitting our in box late last week from our back office team….

We wanted to share as this late arriving tax form can be confusing…

Late Arriving Form 5498 About to hit !

Form 5498 is the settlement of contributions to Qualified assets like Rollovers, SEP’s and also an ending balance …. most all of this is for the IRS (Internal Revenue Service) recordkeeping….

Here is why:

The contributions allows the IRS to know we in fact did make the contribution i.e. Did not spend the funds – so no taxes or in other cases a tax write off is A ok on our tax return

IRS needs to know the IRA balance for RMD (Required Minimum Distributions) – Recall mandatory draws are based on age and prior year end balances…

Ohh…one other confusing but important point… contributions to SEP or the like made for the prior year (2022) will show a current year (2023) contribution… no worries the IRS matches it to our tax return!

Have a Great “Sneaky Tax Form Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Thoughts from the Trenches as Tax Season Wraps Up! A look behind the curtains … Guess How Many Returns are Filed? It’s FINALLY over!

According to a latest IRS release, as reported by the Tax Foundation, in 2020 there were 157.5 Million Tax Returns filed…. this is the fun part of doing this blog, a guess garnered 100 … missed by half … ok digressing….

While pushing a lot of items back until today – the first “Official” Day AFTER tax season… (we appreciate your patience) … with it still hot on our minds, we wanted to share with you a few items about “Tax Season”

This quote was heard verbatim several times (4-5) this year… had to show you!

“Most people do not really know what Tax Season is like!”

There is very much a first year back to normal effect going on since 2019 as well… for various reasons the last three years had ebbs and flows as well as all out stops… NOT this year…

Again pointing to the number of people filing a tax return…. here are the big observations…

EVERYONE was swamped if they touched the financial system in any way….

Processing companies –

Tax Forms

Payroll company forms

Social Security

IRS, call centers

Banks …

Just to name a few… and ANY financial transaction company has a line in front of it

Turbo Tax had some quirks…

Most basis chasing is over – yay

Still easy to miss data – no yay

Most professional Accounting software is very similar in their reporting – finally – yay again!

Happy to have a mandatory line in the sand… It’s really nice to HAVE to have this completed…well unless there was an extension filed… yay one more time

Expect many including ourselves to take a bit of a breather….and if you had slow or frustrating processing … it was probably due to one of the above issues…

About 52 weeks from now we get to do it again… BUT we will be back to a more normal expectations…at least that is our bet…

Happy Tax Season is Over Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Short Week – Busiest Wire Day of the Year and Heavy Mail Reminder, Plan Accordingly or Avoidingly – Happy Good Friday!

Reminder that Friday Government offices, and Capital Markets will be closed… Most Banks will have some type of partial hours for Good Friday.

Busiest Wire Day of the Year?

Care to guess which day of the year has more wires of money than any other?

Not surprisingly it is Tax day… Which is Tuesday April 18th this year! While we advocate for an earlier wire than the last minute… many do not…

Word to wise – Stay away if at all possible from moving ANY money near April 18th…. may save some headaches…

Mail is full too

Again, not being huge fans of mailing returns (much better to deposit via IRS website) still a lot of people do…

We cut back on rollovers and other “paper in the mail” (checks especially) from now until after filing day… just to be safe, much like we do near the end of the year for the same reason… yaya, overthinkers and planners – but safe over sorry!

Have a good Wednesday and a Good Friday Holiday.

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Q2 2023 J.K. Financial, Inc. Newsletter … Tax Reminders – Still time for 2022 Savings … M2 Pilot Advanced Analysis Series Review … By John Kvale CFA, CFP …

Welcome to our Video and Audio Podcast Review of our Q2 2023 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.

Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page

BREAK IN : From Parting Thoughts in the Newsletter

If you are not receiving our street-cents.com blog posts weekly Monday, Wednesday and Fri-day, please reach out and let us know. We have entered the late cycle portion of this economic slowdown and items are moving much quicker than our quarterly newsletter so we are posting frequent and very important items amongst our sometimes-humorous articles for your review and knowledge.

Let’s get going! We hope you enjoy!

Q2 2023 Newsletter

(YouTube)

Last Minute Tax Planning and Reminders

After a small top of the mind reminder that it is ok to pay taxes, we do not want to pay zero today and then pay at a much higher rate in the future, we certainly do not want to pay ANY more than we have to, we go into several reminders….

The SEP and the Spousal IRA – two things we can do now that will help last years taxes….

Important Reminder about reporting :

Just because we did not receive a tax form personally, does not mean that the IRS did not receive some type of notification of that taxable event! If you had a transaction, usually of some out of the ordinary type, that you did not receive a tax form for, we are not out of the woods and you should report it.

Lastly, comments about the possible rolling of 529 into Roth… the answer is still up in the air with additional legal clarity on this… but it cannot start until 2024 anyway!

Happy Anniversary Rate Increases

While hard to believe, the monumental rate increases (fastest of a life time in %) just started about a year ago

M2 Broad Liquidity Measure Tightens

In another – not kidding here – never seen before, M2 one of the broadest measures of liquidity, turns negative and makes our Pilot Advanced Analysis Series…

First spoken about in January, the effects are being felt through the financial system.. but not where we had expected so far….

Have a Great Finally Here Spring! Talk in the Summer!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

Green Light on Taxes – Corrected 1099 Out – You Lucky One have already been contacted!

We are in receipt of our Corrected Tax Form (1099) and we are happy to report a total of 1 … yep only a solo….. lucky family and you have already been contacted.

This does not mean we cannot have another as there are four more corrected rounds before completion. BUT, over the last years we have found the first run gives us a good idea of the expected future.

As a point of reference we have had years when the first round was nearing triple digits, just to put the solo reported in context. Stranger things have happened, but we are most likely in the clear!

Have a Great “Corrected Tax Form” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents