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Tax Tips for Your Summer JobSummer brings warm weather, fun outdoor activities, and new opportunities to earn some additional income. Taxes on seasonal income, however, need to be handled with care, whether they're related to your child's first job or an extra income opportunity for you. Here are some tips to help manage the taxes on your summer earnings...
Graduation Season: A Great Time to Review Money BasicsWith graduation season just around the corner, now it a great time to review five key money basics for both students and the entire family.
Easing Into Retirement or Semi-RetirementRetirement is not a single event. It is a process that begins long before you leave work and continues for the rest of your life. Here are some tips on how to transition into retirement and beyond.
Calling All Taxpayers: Plan Now or Pay LaterProcrastination is easy, especially when it comes to summertime tax planning. But waiting to implement strategies to reduce your 2023 tax obligations could cost you money. Here are some suggestions to help jumpstart your midyear review...
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MAY 2023 Q & AQ: Is my mileage for my volunteer work a tax deduction? A: If you don't receive compensation or reimbursement for volunteer driving, you can deduct 14 cents per mile in 2023 or actual expenses for gas and oil. You can't deduct general repairs and maintenance, insurance, or licensing fees. You can also deduct any parking or tolls incurred while volunteering, whether you use the actual expenses or the standard mileage rate. Be sure to keep contemporaneous records of all miles you drive while volunteering. If the charity reimburses you for gas and use of your personal vehicle, any amount rececived above 14 cents per mile is taxable income to you.
SECURE Act 2.0 for IndividualsAt the end of 2022, Congress passed a new round of laws aimed at creating a secure retirement for Americans. Here are some of the highlights. RMD AGE INCREASES Beginning in 2023, the age to start taking required minimum distributions (RMDs ) from qualified retirement plans increases from 72 to 73. Then, beginning in 2033, it will increase to 75. You have until April 1 of the year after attaining that age to take your first RMD. INFLATION ADJUSTMENTS Beginning in 2024, the IRA catch-up contribution amount for taxpayers over age 49 and qualified charitable distributions (QCD) will be indexed annually for inflation. EXPANDING EXCEPTIONS Starting in 2024, there will be no early withdrawal penalty on distributions of up to $1,000 per year if needed to meet emergency expenses. There are limitations to taking more than one distribution in a 3-year period. Starting in 2026, distributions of up to $2,500 per year will be allowed to pay long-term care premiums. Also, there are new exceptions for distributions to domestic abuse and terminally ill individuals. Allowed withdrawals for natural disasters, public service workers, private sector firefighters, and correctional officers have been expanded. Amended Tax Return TipsIf you filed your 2022 tax return already but realized you missed some information, you can amend your return by filing Form 1040-X. An amended return is necessary for things like, forgetting to claim taxable income, or claiming the wrong tax filing status. But before filing your return, ensure the IRS has already processed your original return. This will help ensure the IRS doesn’t get your original and amended returns mixed up. Check the status of your return after three weeks at https://www.irs.gov/filing/ wheres-my-amended-return or call 866-464-2050.
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