Open a Roth IRA Today or Regret It Later
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Seriously, open and fund your Roth IRA now. You’ll regret it later if you don’t get started now.

Q&A: Can I pay for my student’s computer repair using 529 funds?
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In 2015, Congress passed the PATCH Act that included a provision which allowed computer purchases to be a qualified education expense for 529 plans. But what of computer repairs?

New 2018 Tax Law (Tax Cuts and Jobs Act)
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The Tax Cuts and Jobs Act came out of conference, which means that the House and Senate bills have been reconciled into one piece of legislation.

What Expenses Can My 529 Account Reimburse in 2017?
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While this may seem complex, don’t let it deter you from using a 529 account to the fullest extent possible.

Understanding H.R.1 Tax Cuts and Jobs Act
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It looks like something from this proposal will become law. Right now, the bill is in committee where the differences are being resolved.

Alternative Minimum Tax Changes in 2018
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We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

Obamacare in the Upcoming Tax Cuts and Jobs Act
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We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

Your Deductions in 2018 Under the Tax Cuts and Jobs Act
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We will have to wait and see what tax law we have after Congress reconciles the bills and the final version is signed into law by the President.

Senate Tries to Hurt Capital Gains Management
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We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

529 Expansion to Include Elementary and Secondary Education?
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With this proposed expansion, 529 accounts may become the most cost-efficient way to fund all education expenses.

No Roth Recharacterizations After 2017?
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It is an inconvenience during the holiday season to say the least, but Roth conversions are worth the effort.

How to Apply for a Health Insurance Exemption
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Coverage is considered unaffordable if the lowest cost Bronze-level plan available to you through the Marketplace in 2017 is more than 8.16% of your household income.

How Do You Value a Gift of Stock for Taxes?
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How do you determine the value of your gift of stock? The IRS doesn’t like you to use rough estimates on your tax forms; they prefer a black and white number.

Should I Cut Back My Hours to Get an Obamacare Subsidy?
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It’s hard to know… but I bet I’m not the only one looking at my compensation differently.

Understanding the 5-Year Holding Period, Roth Conversions, and Exceptions
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To avoid the 10% penalty, do I have to satisfy the 5-year holding period for my Roth conversions if I’m over age 59 1/2? The IRS is not very clear when it comes to when you need to pay penalties on Roth IRA withdrawals, but I think I know the answer.

How to Lower Your AGI and Why You’d Want To
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Here are 8 reasons you’d want to lower your AGI and 8 methods to lower your AGI.

When You Should Not Do a Backdoor Roth
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Like how diner coffee gets more bitter as the waitress tops off your cup with more coffee from the pot, so too the growth on your nondeductible assets increases your tax owed by decreasing the percent post-tax assets in your cup.

How Your Tax Is Calculated: Understanding the Qualified Dividends and Capital Gains Worksheet
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The 27 lines, because they are so simplified, end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

What is the 5-Year Roth Rule?
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You can’t touch the earnings on your contributions until you’ve had an account open for 5 years and you’re either over age 59 ½ or you meet special exceptions.

How to Deduct U.S. Debt Obligations on State Tax Returns
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Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.

RMD Mistake: Failing to Take Your RMD
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The key to getting the waiver though is showing that “you are taking reasonable steps to remedy the shortfall.”

Radio: Why Corporate Tax Rates Should Be Lowered
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David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing corporate tax rates, and why they should be lowered.

Can I Continue Retirement Saving Past Age 70 1/2?
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The rules for post-70 ½ IRA contributions depend upon whether the account is a traditional IRA, Roth IRA or SEP IRA.

Fixing 401(k) Rollover Mistakes
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The IRS has a rule that if you are doing a rollover for a 401(k), you have 60 days to complete that process. But what if you experience a tragedy and can’t finish on time?

How Much Can I Contribute to My Retirement Accounts?
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With many types of retirement accounts available, it can be difficult to keep track of how much you can put away where, especially if you are eligible to contribute to multiple accounts.

Do Children Need To File A Tax Return To Fund Their Roth IRA?
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The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

Understanding Virginia’s Tax Withholding Rules
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We know how federal rules require you to either have tax withheld or make estimated payments of tax that will be due, but it is easy to forget that states have their own revenue departments and their own rules.

Understanding the Estate Tax Return
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The estate tax return is definitely complex, but that’s because it has to account for the multitude of special rules that only apply to a few households.

Understanding the Generation-Skipping Transfer Tax
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The fact that we have an 80% “generous grandparent” tax is ridiculous.

Can I Contribute to Both a SEP and a 401(k)?
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SEP plans offer a powerful way to provide for your own retirement in the same way that 401ks do.

Mailbag: The Practical Limits of 1031 Exchanges
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Using a 1031 exchange to turn investment property into residential property is possible, but it takes careful planning from the outset.

Is Margin Loan Interest Tax Deductible?
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Here are the four criteria which must be met in order for margin loan interest to be tax deductible.

Government Requires 2.5 Hours of Daily Work
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Without the burden of federal, state, and local taxes, you could leave your job at 2:27pm every day and earn the same salary.

Radio Interview: The Burden of Government Taxation
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David John Marotta was recently interviewed on radio 1070 WINA’s Schilling Show, discussing taxation and the burden of government.

Mailbag: How Is Capital Gains Tax Calculated?
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The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.

Tax Loss Harvesting and Wash Sales
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Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.

Can I Contribute to my Roth IRA?
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There are some cases that are not as straightforward and if you fall into these categories, you might not know whether or not you are allowed to contribute to a Roth IRA.

Ted Cruz’s Tax Plan
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More than many other candidates, Ted Cruz’s tax plan aims to fundamentally change our tax system.

Four Things You Can Do with Your Roth Before April 15
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If you have not yet funded your Roth account for 2015, it is not too late!

How Roth Conversions Are Reported to the IRS
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The Internal Revenue Service (IRS) is notorious for misunderstanding the recharacterizations of Roth conversions.

What Counts as Wages for the Social Security Earnings Test?
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Contrary to the normal way of things, this time what Uncle Sam gives with the IRS, he takes away with the SSA.

What Counts as “Boot” in a 1031 Exchange?
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1031 exchanges can include “boot,” which is an unofficial term for other property received in the exchange.

Radio Interview: Wills, Estates, and Beneficiaries
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David and host Rob Schilling discuss what estate planning is, why you want to do it, and explain some of the jargon.

Mailbag: Unexpected Income and Estimated Taxes
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How do you handle unexpected income that happens late in the year?

After-Tax IRA Contributions Must Be Reported On IRS Form 8606
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The backdoor Roth strategy involves contributing after-tax funds to a traditional IRA.

What is the Kiddie Tax?
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The kiddie tax was first added to the tax code in 1986 for children under age 14. Now, it can burden them until they are 23.

Trust Protections from Creditors and Spendthrift Beneficiaries
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The beauty of trusts is that they are very flexible, and an estate lawyer can help you craft a document that will follow your wishes and give you peace of mind.

Mailbag: Where Does Cost Basis Go in a Partial 1031 Exchange?
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In a 1031 exchange, the cost basis of the property you give up is rolled into the new property you receive.

When Are Taxes Due On A Roth Conversion?
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Any tax which is ultimately going to be owed is owed by April 15th. Otherwise it may be subject to interest and penalties.

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