Tag Archives: tax

Confusing Tax Form 5498 Explained

Just when we all finally think it is safe to get out of the tax waters (Jaws reference haha) our good old friend, Form 5498, arrives in the mailbox.

What is Form 5498?2017 F 5498

This form reconciles qualified deposits.

Examples include:

  • Confirmation of 401k rollovers
  • Confirmation of IRA contributions
  • Proof of Simplified Employer Pension (SEP) plans contributions

Why does this form come in May? 

Since this form reconciles rollovers and also proves deposits, this form comes AFTER tax season. This form proves the amount contributed IN THE YEAR is was made, said another way, if we make a SEP deposit in the current year for the prior year, Form 5498 shows the deposit in the year it was made and the IRS knows there may be a delay.

What do I do with this form?

Keep it and file it with your next years (current tax year) information. It will correctly reconcile your IRA/401k transactions.

Have a great “Less Taxing 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

Taxes are Done… Finally … A Few Tips to Remember Before Sticking that Information Back into the Files

After each tax season we always feel relieved, as the pressure builds slowly but surely, much like the frog in the boiling water. This story has a better ending.

Taxes are done!

Here are a few tips that are hot of the presses and good reminders for NEXT years taxes!

HSA’s are Great, as is all pre-tax medical savings plansUncle Sam

If you can do an HSA, do one. If you are not sure, reach out to your employer and find out if you qualify, they will know in very short order. Don’t worry about using all of your HSA during the year, you will eventually need the funds for medical expenses.

We prefer HSA to the FSA’s or other plans that may expire annually. However, all pre-tax plans for medical expenses are great. When using the FSA or other “use it or lose it” type of plan, just make sure you do use it and do not let those hard earned dollars expire as the calendar turns to a new year.

Max that 401k

Now is a great time to make sure you are maxing your retirement plan. Do it evenly if possible! In a perfect scenario you likely want to run out of contributions in late November or early December. There are situations such as retirement, job change or other that may make it more appealing to fund early.

Do not overfund your 401k. This can be done via a job change or plan change. We have a more comprehensive article coming soon, but be reminded we do not want to over fund our 401k plans.

New plans can be aggressively invested. As the amount grows, the portfolio should be slowed down and be better diversified for the long term.

You Owed a bunch

If you owed a large amount of money and this is occurring repeatedly, it may be time to adjust your exemptions on for your employers W-4 records of your personal exemptions. Determine what your exemptions are currently and make an adjustment down in number. After your next paycheck, extrapolate the adjustment and see if that will cover your liability. Reach out to us if you need help!

Extension Filers

If you filed and extension, keep your feet moving, especially if you had large transactions or other items that may throw you into an “owed” mode. The longer you wait the more the penalties will be if you are caught by surprise.

Relax and enjoy the rest of the week and the full speed ahead into Summer !

You deserve it!

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

Review that return before you file … Last minute tips

Nearing the “Un-official”  half way point to the finish line for personal tax returns (we call the race from corporates in the middle of March to personals, mid April the time line) a few items have risen to the top of needed reviews.

Items to Review On Your ReturnUncle Sam

Before you file your return, take a look at it. Your tax professional can only complete the items he/she has, and frequently there are missing items that need to be included.

It is each of our own responsibility to confirm our tax returns!

Via repetition, here are this year’s half way point items we are seeing-

  • Property Tax incorrect year – make sure you get credit in the year you pay
  • General Sales Tax missing- It’s your deduction, make darn sure you get it if you itemize
  • Missing Basis- An oldie but goodie, EVERYTHING has a basis- be sure one is included on your return
  • Missing a SEP (AKA Simplified Employee Pension) contribution – Souped up IRA that offsets non-W-2 income- Great Tax Saver- You can do both a SEP and 401k if you have both incomes under the appropriate scenario

Hopefully this will help…. If you have a question– Give us a shout, we are glad to help !

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

Tax and Tax Forms Update, Missing Basis Reminder ….Tax Fraud Update….

While the IRS mandated earlier reporting of W-2’s from employers (End of January versus February) there has been no change on investment related reporting forms.

Tax Form Update

Most but not all 1099’s are now available as of yesterday…. YEAAA … If you have contacted us already, we will be adding your tax form to your personal vault, emailing you a soft copy of your tax form or sending to your tax professional as requested…. glad to help. A paper statement will be snail mailed to everyone even if you only use electronic correspondence for everything.4911abd2-4b9c-408a-a953-d805a2ea9c1a-9907-0000085a4bc97ada_tmp

Reach out to Cathy at cathy@jkfinancialinc.com if you wish to have us send you a soft copy of your form!

Not all 1099’s are complete…. deep breath for those ready to go but without forms, they will be here soon!

Corrected forms have been less prevalent over the last few years, hopefully not jinxing ourselves this time! Even with less corrections, we do recommend holding off on filing your taxes at least until the first correction.

Missing Basis-Non Reported Cost

Most, but not all investments have basis included in your personal 1099. We will be mailing those without basis information an internal report that will make your reporting much easier AND lower your tax burden. We have your basis and it needs to be reported to save us tax dollars.

As a reminder, every investment we have has a basis, DO NOT ALLOW A ZERO TO BE INPUT AS A BASIS, THAT WILL COST US TAX DOLLARS!

Tax Fraud Update

In our small sample size, we are finding that those who have had fraud related issues in prior years, tend to have a higher chance of repeat offenses (Rats…sorry but it is true.) Keep your eyes and ears open for suspicious activity, especially if you have had tax fraud related issues before.

Given the above fact, if you have had fraud related issues with your taxes, go ahead and begin working on your taxes…. we may even want to file before the corrected 1099 comes out. The IRS is moving faster to prevent fraud, we will too !!

Ahhh….today is a Friday …. enjoy your weekend … What a beautiful week we have had here in Texas for February!!!!

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

Tax Hangover Subsiding … Speaker at Local University … Friday

We are pleased to announce this was one of our most victorious tax seasons ever.

  • Lost Deductions
  • Forgotten Deductions
  • Missed Deductions
  • Improper Basis Reporting
  • Forgotten Carryovers
  • Double Social Security Withholding
  • Last Minute Pre-Tax Retirement Contribution

Just to name a bunch that we were able to enable, catch and help… all totaled to one of the most tax savings seasons we have had.

If we did not get a final copy of your return, send it over for safe keeping and future review.

The stress of a few last minute hanging retirement account contributions did not go without notice, as a member of J.K. Financial, Inc. was stressed enough over last weekend to snap at a family gathering … hurting a few feelings…not mention of any names to protect the innocent of course…Cathy…oops.

Tax Hangover Subsiding

As a regular practice we attempt to get back to everyone the same day or at the latest within 24 hours. We slipped a bit as multiple time sensitive items were at the door as Monday, April 18th, 2016 went from current to past.

We are back on it now…thanks for your patience.

University of North Texas Speaking Event

Wednesday afternoon marked a wonderful 90 minute forum with four fellow advisors and a group of soon-to-be graduates from the University of North Texas. UNT

Giving back, seeing the upcoming generation, answering questions and interacting with the students was very rewarding.

While things can always be better for the future of our country, they are looking great …. judging from these latest interactions! Congrats to all !

Friday

Today is a Friday headed into a terrific weekend. Donald returned his boat and paddles as the water finally subsided from a very wet Texas we have all experienced this week….kidding, but if felt like it, mid week.

Have a great weekend and thanks for reading !

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

 

Q2 J.K. Financial, Inc. 2016 Audio Newsletter Review By John Kvale

We are happy to bring to you our Audio Review of the Q 2 2016 Newsletter.

Q 2 2016 Audio Newsletter Review

 

YouTube Direct Link

Newsletter Link

Have a Great Day!

John A. Kvale CFA, CFP

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

 

 

 

Tax Fraud Update … April Fools Friday

Next week we have our end of the month review and the Newsletter hits mailboxes …two Videos …  better get started now ! But First… let’s finish this week….

Tax Fraud Update

We are now up to over 9 instances of tax related fraud. Good news is that no one has had ANY harm, only inconveniences. We are amazed at the volume of attempts. One item we may point out, there are a large amount of repeat offenses. If you had trouble last year, be on careful watch. If you have not had any prior issues…. Keep that guard up !

April Fools FridayApril Fools

Our vocal venue is fun and we do try to make it entertaining, but our subject matter is too serious (maybe we are too much of nerds -haha)  there will be no April fools here …. That does not clear you from everyone else today….so watch out, and have fun!

Have a Happy Friday !

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