TMTW #303- How Big an Emergency Fund Do You Need?

Tax and Money Tip this Week:
How Big an Emergency Fund Do You Need?
September 21, 2016 | No. 303

Click here to read the article from Bottom Line Personal

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #302- Bogus IRS Phone Calls Occuring

Tax and Money Tip this Week:
Bogus IRS Phone Calls Occurring
September 14, 2016 | No. 302


The North Carolina Attorney General is warning taxpayers of an ongoing bogus IRS telephone scam and has quoted over 7,000 calls since November 2014.

Do NOT answer the call, let it go to voicemail.

If you do answer- do not provide any information- hang up immediately.

After retrieving the number, either through voicemail or caller ID, report the “supposed” telephone number “you are to call”.

Report the number to: NC Attorney General’s Consumer Protection Division at 919-716-6000.

You can also put yourself on the ‘Do Not Call List’ by calling 1-888-382-1222.

The NC Attorney General will report these bogus calls and numbers to IRS enforcement Division which is working to track these scammers down.

These calls are coming from national and international boiler rooms attempting to get personal information and SCAM YOU.

Since these bogus calls can take many forms and scammers are constantly changing their strategies, knowing the telltale signs is the best way to avoid becoming a victim.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #301- Don’t Miss the September 15th Deadline

Tax and Money Tip this Week:
Don’t Miss the September 15th Deadline
September 7, 2016 | No. 301

Final Filing Deadline Reminder

If you need to file a Form 1065 (partnership return), Form 1120S (S corporation return) or Form 1041 (fiduciary return), the deadline to file your 2015 return is September 15, 2016.  This assumes you had filed for an extension prior to April 15, 2016.

If you put your personal tax return on extension (Form 1040), you still have until October 15, 2016 to timely file your 2015 return.

As a reminder, putting your tax returns on extension can be a good thing—but penalties to miss the extension deadline can be steep.

Give us a call if you need help meeting your deadlines.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #300- Happy Labor Day

Tax and Money Tip this Week:
HAPPY LABOR DAY
August 31, 2016 | No. 300

Wishing you and your family a safe and happy Labor Day

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #299- September 15, 2016 Tax Deadlines: Individual Estimate Taxes and Tax Planning Checkups

Tax and Money Tip this Week:
September 15, 2016 Tax Deadlines: Individual Estimate Taxes and Tax Planning Checkups
August 24, 2016 | No. 299

This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2016 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when they prepare their tax returns.

Coming up September 15, 2016 is the date in which the 3rd installment for individuals that have income that is not taxed and withheld (like W-2 income) is due.

Self employed businesses, e.g. Proprietor Schedule C filers, folks that own S Corporations, Partnerships, LLCs, or other flow-through entities must estimate their unpaid income and/or self-employment taxes for the period January 1-August 31, 2016 and pay ½ of this amount to IRS and/or NC Dept of Revenue on September 15, 2016 and the other ½ of this amount on or before January 15, 2017.  (April 15th and June 15th of each year are also Quarterly Estimated Tax Payment dates that have also passed by if you weren’t aware)

The rules for estimated tax payments depend on your modified adjusted gross income for 2016. “Safety” estimates can be designed to avoid penalties and interest, optimize cash flow, and save taxes

 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

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TMTW 298- When Should You Take Social Security?

Tax and Money Tip this Week:
When Should You Take Social Security?
August 17, 2016 | No. 298

Read the article HERE -by Rande Spiegelman at Charles Schwab

 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW 297- The Tax Impact of a Child’s Investment Income

Tax and Money Tip this Week:
The Tax Impact of a Child’s Investment Income
August 10, 2016 | No. 297

How To Assess The Impact Of A Child’s Investment Income

When they’re old enough to understand the concepts, some children start investing in the markets. If you’re helping a child learn the risks and benefits of investments, be sure you learn about the tax impact first.

Potential danger

For the 2016 tax year, if a child’s interest, dividends and other unearned income total more than $2,100, part of that income is taxed based on the parent’s tax rate. This is a critical point because, as joint filers, many married couples’ tax rate is much higher than the rate at which the child would be taxed.

Generally, a child’s $1,050 standard deduction for unearned income eliminates liability on the first half of that $2,100. Then, unearned income between $1,050 and $2,100 is taxed at the child’s lower rate.

But it’s here that potential danger sets in. A child’s unearned income exceeding $2,100 may be taxed at the parent’s higher tax rate if the child is under age 19 or a full-time student age 19–23, but not if the child is over age 17 and has earned income exceeding half of his support. (Other stipulations may apply.)

Simplified approach

In many cases, parents take a simplified approach to their child’s investment income. They choose to include their son’s or daughter’s investment income on their own return rather than have him or her file a return of their own.

Basically, if a child’s interest and dividend income (including capital gains distributions) total more than $1,500 and less than $10,500, parents may make this election. But a variety of other requirements apply. For example, the unearned income in question must come from only interest and dividends.

Many lessons

Investing can teach kids about the time value of money, the importance of patience, and the rise and fall of business success. But it can also deliver a harsh lesson to parents who aren’t fully prepared for the tax impact. We can help you determine how your child’s investment activities apply to your specific situation.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

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