Category Archives: Tax Related

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.



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.



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.



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 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


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.

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.



Tax Forms Update – They are all Completed – Yay – Let the Corrected Clock Tick … Personal Fun Longevity Experience while Walking into the Building … Friday … Back Yard Punxsutawney Phil Tree Update …

Tax Forms Update

Ya ya… lot’s about Tax “Stuff” this time of the year year, but tis the season…. So some good news here!

This week all forms dropped for everyone… a lot had already been completed, but there were still a fair amount that had not been completed…..

If you have not received your form and need it, let us know as we have quick electronic access and can email it to you…. Most importantly, now the Corrected clock starts ticking… We will be in touch!

Personal Longevity Experience

Early this week while entering my building a nice elderly couple, led by the husband with a stroller mentioned they were moving slowly …. as I held the door with absolute pleasure to do so, I said not to worry, my father is happily 95 years old …. and we all move a bit slower as we luckily make those notches in our belts…

Surprisingly, the nice lady just behind the couple bellows… “My mom just turned 100 ..So I am in no hurry, just take your time!”

Still holding the door … the gentleman behind her yells “My dad is 87, you take your time sir … and enjoy the day and no problem!”

Couple of things to take from this experience….

  • What a great way to start the day …
  • Many are living longer …
  • Break the silence when you can … I think all parties involved also had a super start to their day!

Punxsutawney Phil Backyard Tree Update

Can you tell we are ready for spring to arrive? HA

Break In: Wow did we have a bad storm come through last night… 90 mph winds in some places … hope all close are ok!

By the way, Spring Break is two weeks out AND the time changes next week… a favorite day!

So how is our Punxsutawney Phil Tree doing? This picture is literally hours hold from the time you received the update…..

Notice the change? Here we go… with two weeks away, the next update should be interesting!

Have a Great Friday and a super weekend, next week is a one day early shortened “Work” week due to kids free day due to weather day make up Friday and the following is a tethered technology Spring Break week…but that is two weeks away.. enjoy your 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.



IRS Pointers to filing 2022 Return… A Few Good Reminders !

Well… the headline of the story was more grabbing than the actual content….but heck it worked on us, and grabbed our attention….

Here are the key points from the IRS article:

1. Gather tax paperwork and records for accuracy to avoid missing a deduction or credit.

Some information taxpayers need before they begin includes:

  • Social Security numbers for everyone listed on the tax return,
  • Bank account and routing numbers,
  • Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions,
  • Form 1095-A, Health Insurance Marketplace statement,
  • Any IRS letters citing an amount received for a certain tax deduction or credit.

We are good with this… a little obvious, but ok… Measure twice cut once and be safe! Onward ….

​​​​​​​2. Remember to report all types of income on the tax return. (We would add, reported or not!)

This is important to avoid receiving a notice or a bill from the IRS. Don’t forget to include income from:

  • Goods created and sold on online platforms,
  • Investment income,
  • Part-time or seasonal work,
  • Self-employment or other business activities,
  • Services provided through mobile apps.

We would add, just because you did not receive a tax notice, DOES NOT mean the IRS did not and is looking for the appropriate notation on your tax return (Huge amount of time this occurs with cashing Series EE bonds) … a missing item is an easy automated paper letter audit….and as mentioned here absolutely requires a response

From the afore mentioned post :

Amazingly nearly 2/3 of audits, which are almost all done by paper due to the cost of a field audit are not answered, resulting in a claim on the taxpayer. Bottom line, make sure you show the IRS that you’re answering their questions in a timely fashion and expect a paper computer driven notice.

3. File electronically with direct deposit to avoid delays in receiving a refund.

We are really good with this one, and have been encouraging ES payments electronically for some time now.

Ok… that is about the end of what we like in the article and what applies to everyone that is reading this post….

We find the IRS reasonably fair… sometimes they lead with you are the bad guy trying to cheat…but this is usually diffused with a nice appropriate timely answer….

Have a Great “Basic IRS Tips Review” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



Sports weekend …. No Axe … Tax Preview … More AI … Friday

This weekend marks the final NFL Football game of the season aka the Super Bowl…..

With no Axe to grind, the commercials will be of interest… likely no Crypto domination like last year… wonder who will take the reins?


The IRS sent an interesting note out in the last week… “Key Points to keep in mind when filing your 2022 return!” Not kidding, can’t make this up…. will review and let you know the high points… just to be safe!

AI – Artificial Intelligence

Post Microsoft interest, suddenly the air waves are full of AI talk … we will have more on this shortly, but are surprised at mainstream interest… our fear was for the educators…but looks like everyone is interested!

Have a Great Friday and weekend, next week leads into a Monday Holiday, which always makes the prior week fly… enjoy – 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.



Did You Buy a New Primary Residence Last Year? – Homesteading Your Property – Most States are January 1st Residence Requirement – Possible Property Tax Savings –

Because of the various state rules and regulations, we want to remind you that this post is not meant as a guide, but only as a reminder, if you are in the appropriate state, and in the appropriate situation, you may be able to Homestead your home, saving your property taxes (property tax exemption.)

If you hit up Homestead on your favorite search engine you’re likely going to get an article about moving to the country somewhere and building a log cabin home to retire.

That’s not what this is about.

landscape-3417201__480 homestead

We want to remind those especially that live in Texas who may have moved into a new home on last year on or before January 1st to be sure in Homestead their home in order to have a significant savings on your taxes.

Those living in other states should check their central appraisal district website to see the rules and regulations – this is likely a timely reminder as most just paid the property tax … or are about to pay them.

Not all states offer Homestead exemptions and many states do offer them but do no good because of the tax structure of their states, thereby making it important that you check each situation.

All of the above being said, using our home state of Texas as an example, there is a significant tax savings by homesteading your home.

From Wikipedia

In many states, including Texas once again, there are very special exemptions for those age 65 and it’s likely the January 1 residence date may not apply for those turning age 65. Special tax considerations are given for those 65 and older to school, property, other taxes with frequently freezes in escalations as part of the exemption … In order to qualify, you most likely will need to raise your hand (fill out another form) …notifying your taxing authority of your new tax saving age.

Property tax exemption

A homestead exemption is most often on only a fixed monetary amount, such as the first $50,000 of the assessed value. The remainder is taxed at the normal rate. A home valued at $150,000 would then be taxed on only $100,000 and a home valued at $75,000 would then be taxed on only $25,000.

The exemption is generally intended to turn the property tax into a progressive tax. In some places, the exemption is paid for with a local or state (or equivalent unit) sales tax.


  • California exempts the first $7,000 of residential homestead from property taxes.
  • Colorado allows a 50% deduction for up to the first $200,000 (equivalent to a $100,000 exemption if the property is valued at $200,000 or above) for seniors (over age 65) who have lived in their property for ten consecutive years.
  • Georgia allows a 1% HEST only in a few counties.
  • Florida‘s homestead exemption allows an exemption of 160 acres outside of a municipality and one-half an acre inside a municipality.[5]
  • Kentucky, for 2019 and 2020, the exemption has been set at $39,300. Once it is approved, homeowners who are 65 or older do not need to reapply for the homestead exemption each year.[6]
  • Louisiana exempts the first $7,500 of residential homestead from local property taxes.[7]
  • Michigan exempts the homeowner from paying the operating millage of local school districts.
  • Mississippi exemption from all ad valorem taxes assessed to property; this is limited to the first $7,500 of the assessed value or $300 of the actual exempted tax dollars.[8]
  • New York‘s School Tax Relief (STAR) program exempts the first $30,000 of a primary home’s assessed value from school district taxes; the exemption is limited to owners with incomes under $500,000. Additional exemptions are available for people over 65 with a limited income. The STAR program applies only to school taxes; no homestead exemption exists for taxes levied by other municipal entities. New York prevents a New York resident claiming this exemption if the New York resident owns property in another state and claims a similar exemption in that other state.
  • Oklahoma allows a $1000 deduction of the assessed valuation, about $75 to $125 of savings per year, if owners file for homestead exemption with the local county clerk.
  • Rhode Island exempts the first 20% of the home value from property taxes.
  • Texas allows a deduction, with additional exemptions available for county taxes, people over 65 and people who are disabled. It also requires school districts to offer a $25,000 exemption (but not other taxing districts, such as cities and counties).[9] Texas further limits the assessment increase on a homestead to 10% of the prior year’s value.

In most cases, there is a deadline for filing your Homestead Exemption, so do not dilly dally around or you may lose that tax savings at the end of this year or early 2024!

Just a friendly reminder to jog your memory, and maybe give you a nice tax savings!

Have a Great “Homesteaded Tax Savings” Day!

John A. Kvale CFA, CFP

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

Give a Kid a Roth … A Donor’s Heads up/Reminder!

A while back we first came across the neat Tax/Retirement/Donation/Savings technique utilizing low/early career income relatives (think young kids/adults) of basically helping them fund a Roth IRA.

Give a Kid a Roth – Blending Tax Techniques to Accomplish

We all know starting early greatly helps our future retirement planning chances… Marry that to tax free growth AND under CURRENT Tax laws, Tax Free withdraws, and we have a neat plan.

Let’s blend some tax techniques and get this accomplished:

In the year 2023 we can give $17k to basically anyone without causing a Gift tax event…. the max for young earnings is $6500 into a Roth this year!

Have a Child/Grandchild/Relative or special young person in your life? If they have at least $6500 in income this year, consider giving them a Roth IRA to help jump start their retirement…. the earlier the better of course.

Kids working at your or a relatives business? Consider funding a Roth with their income… maybe a well earned bonus goes directly into the Roth?

Make sure the young earner does not over save in their Retirement plans – Max into a 401k is $22,500 this year and that includes a Roth contribution… so do not overfund.

Watch the top end of annual earnings as well… from our Tax Page Right here on our Blog

Lastly…the Sizzle —

Just one $6500 Roth for a 15 year old, growing at 8% annually, will be worth a whopping $300k+ at age 65 … do that three times to get to a million… and that is tax free withdrawals at retirement! NICE!

Have a Great “Give a Kid Roth” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.