How Your Tax Is Calculated: Qualified Dividends and Capital Gains Worksheet
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The 25 lines of the Qualified Dividends and Capital Gain Tax Worksheet are so simplified, they end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

Individual 401(k) Elective Deferral Limits and Deadlines
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You as the business owner have until the tax-filing deadline to complete both your profit-sharing and elective deferral contributions.

How Your Tax Is Calculated: Tax Table and Tax Computation Worksheet
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Whether you are on the Tax Computation Worksheet or in the Tax Table it helps to understand how your tax is calculated.

How Roth Conversions Affect Your Contribution Basis
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In the eyes of the IRS, Roth conversions are a type of rollover and their part in your Roth IRA’s contribution basis is called a rollover contribution.

Q&A: Amount Paid in Non-Cash?
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I would recommend that you strive to pay your children $0 in non-cash compensation. Let them purchase their own rewards.

Unpacking Publication 590B’s Justin Example
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In Publication 590B, the IRS gives an example to demonstrate how Roth distribution ordering works.

New Child Tax Credit for 2021 Only
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The 2021 tax credit is worth $3,600 for children under age 6 and $3,000 for those under age 18. These rules apply to tax year 2021 only.

Unpacking Publication 590B’s Ishmael Example
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In Publication 590B, the IRS gives an example to demonstrate how Roth contribution basis works in a Roth IRA.

ABLE Accounts: Tax-Advantaged Savings for People with Disabilities
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ABLE accounts offer people with disabilities a new opportunity to save and invest for the future.

Save the 1099-R from Your Roth Rollovers
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It is easiest to simply save your 1099-R and its numbers with your record of all your Roth IRA contributions.

Keep Track of Your Roth Contributions
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Going forward, keep track of all your contributions in a file alongside where you store your tax returns.

Q&A: What are the Tax Rates for an Inherited IRA?
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The short answer is that most taxable distributions from inherited IRAs are taxed at the the child / beneficiary’s income tax rate. The longer answer is that there are multiple chances for inheritance to be taxed.

How Do You Report Withdrawals from Roth Contribution Basis?
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To take advantage of tax-free penalty-free Roth withdrawals of contribution basis, you need to keep careful records of your Roth contributions.

Q&A: Can I Fund My HSA with Appreciated Stock?
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Sadly, the IRS is very clear about this; contributions must be cash.

How to Avoid an IRMAA Medicare Premium Surcharge 2021
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Depending on your particular case and Social Security agent, you may get your surcharge waived, lowered, or upheld.

Q&A: If I Close My Oldest Roth IRA, Do I Change My 5-Year Clock?
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Fortunately, closing a specific account doesn’t reset your Roth clock.

Q&A: Can I Convert an Inherited IRA to Roth?
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Roth conversions can only be performed during the IRA owner’s lifetime.

How to Report NAP Credits on a Virginia Return
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Luckily, the form is organized by type of tax credit and the NAP credit section of Schedule CR is only five lines long.

Q&A: Can I Make a Prior-Year Roth Conversion This Year?
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Alas, the year you move the funds from traditional IRA to Roth IRA is the year that those assets are taxed.

Q&A: Are There Any Restrictions on How Much or Who Can Convert to Roth?
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Taxpayers of any income level, age, and employment or retirement status can convert their pre-tax individual retirement assets to Roth IRA.

The 2020 Joint Charitable Standard Deduction: $300 or $600?
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The draft 2020 Form 1040 instructions clarify: the $300 limit is per form.

The Full Complexity of All Required Minimum Distribution Divisors Explained (2020 Update)
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The SECURE Act of 2019 changed several things, so here is an updated review of this complex subject.

Can a College Drop-Out Reimburse for Expenses Out of a 529 Plan?
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Hopefully this simple guide helps you get started in the right direction for correcting these surprise excess distributions.

Q&A: Can a 529 Reimburse for Last Year’s Expenses?
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Unfortunately, neither “yes” nor “no” is a correct answer to this question.

Before the Estate Tax Exclusion Sunsets in 2026
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Individuals with more than $5M may be served well from gifting to utilize the higher estate exclusions before they sunset.

How to Transfer 529 Funds From One Family Member To Another
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You can transfer up or across the family tree. However, if you want to transfer down a family tree, you can run into taxation problems.

How to Change Your IRA Beneficiary Designations After the SECURE Act
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Now non-nuclear family or friends who are more than 10 years younger than the decedent and in good health are never eligible for stretch provisions and must distribute the whole balance over 10 years.

Can I Deduct a 529 Contribution to an Account I Don’t Own?
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Unfortunately, the answer is that you cannot. The 529 account owner receives any state tax deductions for contributions make to their account.

How to Claim Your Virginia State Tax 529 Contribution Deduction
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Form ADJ of the 760 lines 8a – 8c are where you report miscellaneous deductions.

Virginia 529: What Counts as a Unique Account for Per-Account Deductions?
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Oddly enough, what qualifies something as a unique account is both a unique account registration and investment portfolio selection.

Before August 31: Another Chance to Redistribute Your 2020 RMD
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This latest notice now gives both seniors and heirs who have not yet been able to put their formerly RMD funds back into their IRAs the chance of redistributing those funds to the IRA that distributed them.

How to Transfer Your Economic Impact Payment Card Into Your Bank Account
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It took me one hour to complete from start to finish. Hopefully, now that I have bumbled my way through it on my own and documented the steps, it takes you less time.

Do Children Need To File A Tax Return To Fund Their Roth IRA? (2020)
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Don’t let stress about tax filing requirements keep you or your child from a powerful opportunity to provide for their future.

Yet Another Chance to Redistribute Your 2020 RMD
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Hopefully, this extension helps some take advantage of this welcome relief.

Q&A: Can You Fund a Roth IRA After Filing Your Taxes?
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You always have until the tax filing deadline to make your IRA contributions regardless of when you file.

Q&A: Can I Undo My Roth Conversion? (2020)
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Unfortunately, as part of the Tax Cuts and Jobs Act back in December 2017, Congress eliminated the ability to undo Roth conversions, so there isn’t a way to undo a conversion.

How to Use a Coronavirus-Related Distribution to Reverse Your RMD (2020)
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In this way, those with inherited IRA distributions they would like to reverse or those with distributions no longer eligible for regular 60-day rollover contributions may be able to still complete either a Roth conversion or IRA redistribution with those assets.

This 2020, The IRA Contribution Deadline Isn’t Until July
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Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

How to Calculate Your Roth Contribution Phase-Out and What To Do With It
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What can you do when you are in the middle of the Roth IRA contribution phaseout range?

The RMD Waiver in the CARE Act of 2020 is a Repeat of 2009 Legislation
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Hopefully, this bit of tax history gives seniors and heirs a bit of comfort in taking advantage of this welcome relief.

Q&A: Do I Need to File Schedule H for My Child’s Wages?
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I do not need to file Schedule H and imagine that most parent household employers also do not need to file this schedule.

CARES Act Creates a $300 Charitable Contribution Deduction for the Standard Deduction
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Congress enabled those who are taking the standard deduction to deduct $300 of charitable giving if they do not itemize.

If You Act Fast, You Can Undo Your 2020 RMD Thanks to the CARES Act
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Among the temporary measures, Congress waived required minimum distribution (RMD) requirements for only tax year 2020.

Funding a 3-Year-Old’s Roth IRA
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My daughter was employed at her first job, earned her first income, and was able to fund her Roth IRA for the first time.

Q&A: Do I Need to Pay Tax on This 1099-R?
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The given numbers on a 1099-R are insufficient to be able to fill out your tax return correctly. Knowledge of what was actually done is required in order to file your taxes accurately.

Q&A: Who Pays Taxes and Penalties on 529 Distributions and How?
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Who will be responsible to pay for the taxes related to the distribution? Where do you report the taxable portion on your tax return?

How to Fund Your Roth with Babysitting Money
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For domestic tasks like babysitting there are often two options: independent contractor or household employee. Taking the time to educate yourself on the difference may be worth your while.

Q&A: Can I Do a Backdoor Roth and a Reverse Rollover to a 401(k) In the Same Year?
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This person has an IRA balance, but is about to empty it with a reverse Rollover. So the question is one of timing: can they do the IRA Rollover before the nondeductible contribution so that their cream and coffee never mix?

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