Category Archives: Tax Related

Quarterly Estimated Tax Reminder … Payment Due Next Monday – Travels Next Week – Happy Fathers Day Weekend

For those of you that need to pay in estimated taxes, this is your friendly reminder…

Payment Due Dates
You can pay all of your estimated tax by April 15, 2019, or
in four equal amounts by the dates shown below.
1st payment …………….. April 15, 2019
2nd payment ……………. June 17, 2019
3rd payment …………….. Sept. 16, 2019
4th payment …………….. Jan. 15, 2020*

Quarterly Estimated Tax Payment Reminder

Here is the link to IRS Publication 1040 ES  – which has EVERYTHING you need to file your ES payment!

Here is the ES payment coupon due Monday June 17, 2019:

2019 Payment Voucher 2 due June 17 2019

Here is where to send the ES Payments:

2019 Where to File ES Payments


State Income Tax filers, you may also need to file a similar report as the above is for Federal Only Income Tax filers…

Break In:

At 10:40, about ten minutes after this post hits your in box, the fourteen year old will play in the Consolation Finals (5th or 6th place) see next note – Nice Father’s Day Gift!

Happy Father’s Day Weekend!


Post Tennis Travels

This week, the largest Texas Tennis Tournament of the Year occurred in a small and people-crushed into, West Texas Town (with VERY bad internet- I digress) … 984 players (not including parents) squashing themselves on courts, grocery stores, restaurants, and any place that was available… EVERYONE … present party included, GLAD TO BE THERE AS LONG AS POSSIBLE … AS IT IS WIN OR GO HOME …. next week, the family is happily off for a quick break in a quiet place before the next tournament which is more normal … a long Weekend  (summer brings the most tournaments of the year).

Always lightly tethered electronically!

Talk to you next week – thanks for your time!

Have a Great “Quarterly ES 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.


Sharpening the Saw at the Financial Planning Association Annual Convention …. Getting Closer to POOL time …

Thursday and Friday of this week were dates for the annual convention of our local Dallas/Fort Worth Financial Planning Association (FPA), the organization that makes up the Certified Financial Planning (CFP) designation….

We make great efforts to always make the event, and we did so this year …

Sharpening the Saw

Sometimes it can seem that we end up in a bubble of our own thoughts unless we get out and hear what others are saying, especially the so called “Experts” in our field….

It is nice to learn new ideas and especially nice when we hear of other “Trending Techniques” in the industry that we are already using…

Here is a neat chart from Thursday’s session that reminds us of the current income tax rates….

Tax Bracket Chart

There were over an hours worth of techniques around managing these rates … WAY more than can be explained here …. but all useful in certain situations….

With a fairly heavy week of information, we will ease your eyes and let you ride into the sunset of the weekend without further complication… we WILL bring some of this information to the forefront in the not too distant future… so your not off the hook completely…haha

Pool Time ? ALMOST!!!!

Having a totally outdoor family … and no Pool, the opening of local Pools is exciting….

It’s not here yet, but just one more week … Can’t wait !

Have a Great “Almost Pool Time” Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.



Confusing Tax Form 5498 Coming to Your Mailbox if any Qualified/IRA Activities

So we all trudged through the two decades of changed tax laws, and for the most part put them behind us … at least until extension filing deadline for some….

Just as we are forgetting about Forms, notifications, and tax documents, here comes one more!

Not to worry!

Form 5498 Reminder2019 Form 5498

The late arriving Tax Form 5498 can be confusing as it arrives seemingly late, but not to worry, its’ purpose is settlement …. Here at the Form 5498 IRS website it is noted as “An Info Copy Only” meaning this form is for our information only and no action is required.

So why does this form arrive so late?

Form 5498 captures movement into IRA/Qualified accounts and since we can contribute to IRA’s until the filing date of this year, they have chosen to have the form reported to them AFTER the regular April filing date to capture as many as possible this year contributions for last year….

Getting into the weeds for a moment as an example, if you roll over a 401k into your IRA Rollover… a Form 5498 will find its way to your mailbox …. not to worry, this seemingly late form settles up with the IRS in crazy accurate fashion one year later…showing them that you did NOT take the funds personally and absolving you of any tax burden.

Bottom line – This seemingly alarmingly late form needs to be tossed in your 2019 Tax File and kept for this years taxes, when we file in April of 2020!

Have a Great “No Alarming 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.

Tax Findings and thoughts from the 2018 Tax Season as we cross the finish line, finally!

Frequently our posts here act as a diary, for clarification, look back, and for possible reference in the future.

With tax season officially ending today – thank goodness – we felt like no better time than the present to pin our thoughts on what we saw this tax season.

So here we go…

2018 New Tax Law Review and thoughtsUncle Sam

Initially as we entered the tax year, we heard rumors and complaints of higher taxes – which on our first few returns, we found inaccurate.

As we carried through tax season we found that there were winners and losers and we will try to explain in greater detail for future reference for this time next year and for possible planning… for the record it way generally very hard to anticipate the winners from losers in advance as each situation seemed to have it’s own twist.

This is in general and very broad terms – as there are always exceptions, especially when dealing with taxes..

First the losers:

Single Taxpayers – With many deductions no longer allowed, simple standard deduction caused lower write offs in many cases.

Folks with heavy real estate right offs – SALT -State and Local Tax – deduction limited many – For the record clumping did not work as well as we had hoped.

Folks and heavy tax state residences – Again due to SALT deduction, we saw limits being reached frequently.

Folks that just fell under the itemized deductions due to limitations from the new tax laws – Limited deductions held many under the standard deduction.

Charitable donors – but not heavily charitable donors – standard deduction comes in play.

And the winners:

Large Families – Child credit in play here – $2k credit per child helped.

Married couples – especially those that had been filing non-itemized returns in the past-higher deduction in play here – a net gain in the higher standard deduction.

Non Itemizers – Those filing regular standard tax returns, usually found meaningful benefit.

Business owners with qualified pass  through taxes – lower tax rate at work here.

Real estate holdings that were not high property tax but possibly had meaningful interest expense – Although SALT limited much, interest expense was not limited in many cases.

So what have we learned?

Given the lower marginal tax rates in certain situation it likely makes sense to accelerate IRA distributions if one is in the appropriate asset position.

Heavy property tax real estate holdings may have limits, the SALT limit will greatly affect the deductions of such holdings.

While salt clumping – The clumping the property taxes-may not work as well, charitable deduction clumping will work very effectively but needs planning. Clumping years of charity gifting to get over the standard deductions may provide greater benefit.

In closing, the thing we learned the most –

The new tax forms and all of their crazy schedules are horrible!

The effort to go to a simplified tax return was nice, however it over complicated the details of any non-simple tax return.

We hope that in the future many of the schedules are enlarged or pulled to the front as it is very difficult to reconcile and reconcile tax returns with the current forms.

Have a Great “Last Unofficial” Tax Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


Tax Update – Reminder busiest wire day of the year – Friday

With a full girth of tax returns under our belt now, the general gist is there are winners and losers – but it is very difficult to pin the success or the lack of success on any one reason.

Thanks for the Thanks – Happy to Do Our JobUncle Sam

A special shout out and thank you to all of those who have thanked us for getting their tax information to them or their tax professional in an expedited manner – Our theory on this is if someone’s working on your return we want it to stay at the top of the pile, hence we try and get the documents in lightning fast fashion!

Again you are all welcome but happy to do our job and hopefully cut down on the inevitable start and stop mistake!

Wire Reminder

Speaking of taxes – the busiest wire day of the year is tax day – Certainly understand the desire to wait to the last minute – weight that option with something going wrong on the busiest day of the year!

Spring Has Sprung

Today is a Friday and it’s finally getting warm at least here in the south.

Enjoy your weekend, we will stay alert for tax questions through our electronica tether.

Don’t forget to spend time with those special in your life!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

IRS Annual Dirty Dozen Tax Scams for 2019

Each year the IRS publishes their most common list of Tax Scams that they are seeing during tax filings.

Each year we like to review and publish here, just as one more extra reminder to help us all stay away from the bad guys.

So without further ado…..

IRS 2019 Dirty Dozen Tax Scamsburglar-308858__480

Phishing: Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a bill or tax refund. Don’t click on one claiming to be from the IRS. Be wary of emails and websites that may be nothing more than scams to steal personal information. (IR-2019-26)

Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as con artists threaten taxpayers with police arrest, deportation and license revocation, among other things. (IR-2019-28)

Identity Theft: Taxpayers should be alert to tactics aimed at stealing their identities, not just during the tax filing season, but all year long. The IRS, working in conjunction with the Security Summit partnership of state tax agencies and the tax industry, has made major improvements in detecting tax return related identity theft during the last several years. But the agency reminds taxpayers that they can help in preventing this crime. The IRS continues to aggressively pursue criminals that file fraudulent tax returns using someone else’s Social Security number. (IR-2019-30)

Return Preparer Fraud: Be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest, high-quality service. There are some dishonest preparers who operate each filing season to scam clients, perpetuate refund fraud, identity theft and other scams that hurt taxpayers. (IR-2019-32)

Inflated Refund Claims: Taxpayers should take note of anyone promising inflated tax refunds. Those preparers who ask clients to sign a blank return, promise a big refund before looking at taxpayer records or charge fees based on a percentage of the refund are probably up to no good. To find victims, fraudsters may use flyers, phony storefronts or word of mouth via community groups where trust is high. (IR-2019-33)

Falsifying Income to Claim Credits: Con artists may convince unsuspecting taxpayers to invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit. Taxpayers should file the most accurate tax return possible because they are legally responsible for what is on their return. This scam can lead to taxpayers facing large bills to pay back taxes, interest and penalties. (IR-2019-35)

Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation to falsely inflate deductions or expenses on their tax returns to pay less than what they owe or potentially receive larger refunds. Think twice before overstating deductions, such as charitable contributions and business expenses, or improperly claiming credits, such as the Earned Income Tax Credit or Child Tax Credit. (IR-2019-36)

Fake Charities: Groups masquerading as charitable organizations solicit donations from unsuspecting contributors. Be wary of charities with names similar to familiar or nationally-known organizations. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate charities. has the tools taxpayers need to check out the status of charitable organizations. (IR-2019-39)

Excessive Claims for Business Credits: Avoid improperly claiming the fuel tax credit, a tax benefit generally not available to most taxpayers. The credit is usually limited to off-highway business use, including use in farming. Taxpayers should also avoid misuse of the research credit. Improper claims often involve failures to participate in or substantiate qualified research activities or satisfy the requirements related to qualified research expenses. (IR-2019-42)

Offshore Tax Avoidance: Successful enforcement actions against offshore cheating show it’s a bad bet to hide money and income offshore. People involved in offshore tax avoidance are best served by coming in voluntarily and getting caught up on their tax-filing responsibilities. (IR-2019-43)

Frivolous Tax Arguments: Frivolous tax arguments may be used to avoid paying tax. Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims about the legality of paying taxes despite being repeatedly thrown out in court. The penalty for filing a frivolous tax return is $5,000. (IR-2019-45)

Abusive Tax Shelters: Abusive tax structures including trusts and syndicated conservation easements are sometimes used to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered. (IR-2019-47)

Have a GREAT “No Dirty Dozen” Tax Scam Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

A Break (Spring Break – next week) on the way to the Tax Finish Line – Travels

Next week we will all be headed different ways as Spring Break for all occurs. Richard will be in the office as his little ones are out of the house and with my little ones getting closer to driving (less dependence more independence coming) we cherish the last few “Family” spring breaks as they will certainly be different soon…

We will be lightly electronically tethered as a tennis tournament starts our break, followed by a true break to a warmer climate.springbreak

Tax Update – SALT withdrawals

As we get closer to the Tax finish line, we get more views on the tax situation. Generally it is good news, however the SALT or State and Local Tax deduction may cause grief for those in an income tax burdened state or those used to writing off heavy property taxes – be prepared if either or both of those are applicable.

Today is a Friday, heading into a Tennis Weekend, followed by a much desired family spring break ….. Talk to you week after next as we will TRY to stay off the airwaves for a family week – no promises!

Have a Great “FRIIIIDAAAAY” !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.