So do your children have to file a tax return if they are your dependents and have investment income? The answer can be yes more often than you think. Worse yet, they might be paying tax on it at your income tax rate! See this IRS tip that explains things a little more and what is required: http://content.govdelivery.com/accounts/USIRS/bulletins/abb0ae?reqfrom=share Now, wasn’t it a great idea back then to gift all this stuff to your kids and have them pay the tax on this stuff at their rates? Well if you went a little overboard, maybe not! They might still be paying at your rates, plus you might have to file another tax return to boot. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Musings: Forget the Lottery – IRS Tries to Distribute $760 Million in Unclaimed Tax Refunds
Anyone who buys a lottery ticket but hasn’t filed a 2010 tax return should kick themselves twice – if you are due a refund from the IRS you only have until April 15 to file that return and get your winnings (I mean refund.) Michael Cohn in AccountingToday will give you all the details: http://www.accountingtoday.com/news/IRS-Looks-Distribute-Unclaimed-Tax-Refunds-70036-1.html?utm_campaign=daily-mar%2020%202014&utm_medium=email&utm_source=newsletter Now topping the list of refunds by state is (surprise, surprise) Texas, California and New York – those three states account for 25% of the total refunds. So you have a little less than a month to get the returns filed and get your money – now get to it! For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: Early Retirement Plan Withdrawals and Your Taxes
This tip from the IRS about retirement plan early withdrawals gives points of what will happen when you do take early money out before 59 1/2: http://content.govdelivery.com/accounts/USIRS/bulletins/ab9ff0?reqfrom=share Now remember that rules and exceptions for Qualified Retirement Plans (401Ks, Defined Benefit Plans, 403Bs and Keogh plans) are different from IRAs and SEP IRAs – they have a whole different set of rules and exceptions. Just make sure you know the rules before taking money out before 59 1/2, as the taxes and penalties on early withdrawals can make your head spin (that is why it is set up like this; Congress and the IRS don’t want you to take the money out early!) For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa