Tag Archives: IRS

It’s that time of year again, Tax Season – Tax forms update and important information concerning those using a tax professional as well as Tax software – Friday

We are beginning to get 1099 tax forms, however all of them are not complete for everyone.

With a corrected schedule that lasts over the next few weeks to months, please do not file your return until we give you a greenlight and get past the first corrected 1099’s!

Please reach out to Jen at jen@jkfinancialinc.com  if you want to know if your tax form is available as we will be glad to electronically send it to you or upload it to your vault as soon as we have sight of it – please follow the next instructions.

Tax Professional and Tax Software taxes control-1027103_1280

For those using a tax professional we highly recommend that you get your information to them as soon as possible as this tax season will most certainly be much more complicated due to all the new tax laws. It would be much better to have already been in line with your tax professional and have a few missing documents than to  bring all of the information late this year.

We feel certain your tax professionals will appreciate it.

For those using tax software, we are fine with you beginning to put your information into the software, however, we would hold off on filing your tax return as we expect multiple software updates, due once again to the tax law changes!

This tax season will likely have a few curveballs as many documents that we may have used in the past, may not be needed due to the tax law changes, however don’t throw anything away, and  be sure and either give it to your tax provider or enter it into your software – let both of them tell you it’s not necessary.

It’s Friday, enjoy your weekend, and thanks so much for reading our posts!

Have a Great “Beginning of Tax Season” 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

Whole Enchilada of Tax Forms Due this week!

Welcome to the biggest tax form week of the year.

While more money moves (mostly towards the IRS) in April than any other month, this week is the Big Enchilada of Tax Forms …

Here is what tax forms to Expect this week – Employers, here’s what needs to get processedUncle Sam

This from the nice IRS Calendar portion of their site .. Yes we may be one of the few to say nice, but generally we find them fair and helpful!… IRS that is

  • Wednesday, January 31, 2018 Individuals: File your tax return if you did not pay your last installment of estimated tax by Jan 16th (see Form 1040-ES)
  • Wednesday, January 31, 2018 File Form 720 for the fourth quarter of 2017.
  • Wednesday, January 31, 2018 Furnish Forms 1098, 1099 and W-2G to recipients for certain payments during 2017. Furnish Form W-2 to employees who worked for you during 2017.
  • Wednesday, January 31, 2018 File 2017 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS with the SSA whether you file using paper forms or electronically.
  • Wednesday, January 31, 2018 File Form 1099-MISC with IRS if you are reporting nonemployee compensation.
  • Wednesday, January 31, 2018 File Form W-3 with Copy A of all Forms W-2 issued for 2017.
  • Wednesday, January 31, 2018 File Form 730 and pay the tax on wagers accepted during Dec 2017.
  • Wednesday, January 31, 2018 File Form 2290 and pay the tax for vehicles first used in Dec 2017.
  • Wednesday, January 31, 2018 Deposit payroll tax for payments on Jan 24-26 if the semiweekly deposit rule applies.
  • Wednesday, January 31, 2018 Deposit any FUTA tax owed through Dec 2017.
  • Wednesday, January 31, 2018 File Forms 940, 941, 943, 944 and/or 945 if you did not deposit all taxes when due.

We have highlighted for your (and our) convenience, the most common forms !

Have a Great “Massive 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.
www.jkfinancialinc.com
www.street-cents.com

 

 

New Retirement Limits – Same as before … well almost !

The IRS recently released the updates for the 2017 Limitations on retirement benefits.

It was pretty easy… THE SAME as 2016!

From the IRS Release:

Highlights of limitations that remain unchanged from 2016irs

  • The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.
  • The limit on annual contributions to an IRA remains unchanged at $5,500.  The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

 

There were a few changes that were long on words, but short on substance… here they are.. again from the IRS release..  Print – Click this link to Print this page

Highlights of changes for 2017

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2017.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions.  If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)    Here are the phase-out ranges for 2017:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $62,000 to $72,000, up from $61,000 to $71,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $99,000 to $119,000, up from $98,000 to $118,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $186,000 and $196,000, up from $184,000 and $194,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is $118,000 to $133,000 for singles and heads of household, up from $117,000 to $132,000.  For married couples filing jointly, the income phase-out range is $186,000 to $196,000, up from $184,000 to $194,000.  The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the saver’s credit (also known as the retirement savings contributions credit) for low- and moderate-income workers is $62,000 for married couples filing jointly, up from $61,500; $46,500 for heads of household, up from $46,125; and $31,000 for singles and married individuals filing separately, up from $30,750.

 

Pat yourself on the back if you are still awake at this point… my apologies if you fell over… Bottom line, not a lot of changes!

Have a Great Day!

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

Foreign Bank and Financial Accounts (FBAR) – Filing Due Tomorrow June 30 2016

With a smaller world and using our firm as an example, having many wonderful clients and friends who may be originally from a foreign country, residing here in the USA, we wanted to send a reminder.

FBAR Filing due tomorrowFBAR

American tax filers who have control over funds in other countries need to file their FBAR or their statement of Foreign Bank and Financial Accounts update by tomorrow.

Here is the link to the actual FBAR filing page

Here is the link to the IRS page concerning FBAR filing

The penalties are stiff and there are no extensions, so if you need to file, do not delay!

Have a super day!

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

 

 

WARNING for All Parents Using 529 Plans for College Funds Currently

Attention all parents using 529 funds for college funding, please be careful NOT TO take your spring (2016) distribution this year (2015). While the bill may already be in your mailbox, the IRS frowns upon mismatching of tax years.

Match your Distribution years529

We do have known contacts of IRS problems associated with the spring tuition payment being taken out this year – leading to the appearance of a much greater distribution in the current year. Unfortunately many colleges don’t give a great deal of time to pay spring tuition, however the IRS wants us to keep the bills associated with our college funding in the same tax year. 

If you’ve received your spring tuition, hold off on taking that 529 distribution until next year. Otherwise the IRS may be at our doorstep! Accidents do happen, and it will not be the end of the world, but if possible dot the i’s and cross the t’s on this one !

Some really neat stuff coming in the next few weeks…but that is later…enjoy your weekend !

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

 

Hacker(s) gets 100 thousand Tax Returns from IRS…. SCHOOL IS OUT !!!

In a “You cannot make this up moment“, the IRS reported on Tuesday the 26th, a clever hacker(s) managed to get over 100 thousand tax returns.

The hacks were via a request for transcript, much like a bank or mortgage company would do to confirm your filed return was the same as the one you may be showing them.

Most Important Item of the IRS hack

The IRS is going to send a letter to those they believe information was stolen. We will update you as more information is released, but for now be on the watch for a letter.

In this crazy cyberworld, also be on the watch for a fake/hack letter …. I know, you gotta be kidding me…nope !

School is out

Schools Out
Seems like only yesterday I posted this picture, but it indeed was ANOTHER full year ago !

Today my first grader has a new curvy number in front of his grade level and my fourth grade princess “graduates” from her school, and heads to middle school… formal ceremony, funny five-year video, tons of mom (and dad) tears not withstanding, I will be out most of the afternoon !

It goes fast… do not take it for granted !!

Talk to you next week … Yep that is a new month too!!! …. told ya it goes fast

Have a great weekend!

John A. Kvale CFA, CFP

PS Donald “The Brain” and family have not floated away and are fine, but considered building an ARK!!

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

My Identity stolen a third time ??? Yep … Friday

As a financial advisor we drink the EXACT same cool aid we have for clients   … Same investments, same conservative philosophy, long-term thinking, tax strategies, generally optimistic, but skeptical when necessary  … and well … I guess the same identity theft some have experienced lately!

On Tuesday of this week, I was notified by the IRS by mail, not just once, but two lovely envelopes, stating someone was trying to file taxes (not me) and there was a conflict. (Nothing associated with the office, all info from my home/personal address)

Wow… TWO TIMES … Does that mean two different people are trying, or just the same person twice ? I will let you know when I know! thief

Needless to say, keep your guards up!  Here , here and here are a few of our articles on this, which of course I have heeded myself!

Ahhhh, but today is a Friday and I am on the road for a short but fun trip out-of-town and back. Do not forget to spend time with those special in your life … Talk to you next week!

Get back cyber criminals!

John A. Kvale CFA, CFP

http://www.jkfinancialin.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225