The pandemic drags on. Here in Massachusetts, we are taking mask-wearing seriously. Even the iconic ducklings in Boston’s Public Garden and the giant baby head outside of Boston’s Museum of Fine Arts are wearing them. (Does anyone else think the giant baby head is a little weird?) Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, individuals impacted by coronavirus can access up to $100,000 from their retirement plans with fewer consequences than usual. Recently, the IRS issued new guidance regarding these distributions.Should you take a coronavirus-related distribution from your retirement accounts?The first-and-foremost question is: “Do you need …
Taxes
Stimulus Bill and Tax Deadline Information
It’s difficult to overstate the impact the global pandemic is having on all of us.Today, I focus on how recent changes to tax due dates and the stimulus bill might affect you.The due date to file and pay your Federal income taxes has been extended to July 15, 2020. Most but not all states have followed suit. Just this morning 3/27/20 Massachusetts announced they would also extend the deadline.Also extended to July 15, 2020: Q1 estimated tax payments for 2020Deadline for 2019 IRA contributions. If you have already filed your 2019 tax return and scheduled payment of tax due via direct debit in April, you can cancel the direct debit and send the payment in July. To cancel …
Six Things to Know about the Secure Act.
Sweeping legislative tax or retirement reforms typically happen every 10 years or so, but December of 2019 brought us the 2nd major piece of congressional action in 2 years! Just two years ago, we were busy deciphering the TCJA (Tax Cuts and Jobs Act) passed in December 2017. Congress must have hired a new CAO (Chief Acronym Officer) this year. This one has a snazzier Acronym - the SECURE Act stands for “Setting Every Community Up for Retirement Enhancement”. It was signed into law in December 2019. Some of us are scratching our heads on whether this legislation does indeed set EVERY community up for retirement enhancement, but it is easier to say than …
Did You Get a Business Owner’s Tax Break in 2018 and Beyond?
Last December, I went to my annual two day tax education class and sat with several old-timers at lunch. I felt like a whippersnapper next to them. One of them opined "I remember the Tax Act of 1986" and proceeded to entertain us with stories of fixing mistakes using a quaint cut and paste method with an X-acto knife! Rule #1: Do not antagonize the person using holding the knife. Yikes! The most recent major overhaul to the tax code is officially known as the Tax Cuts and Jobs Act of 2017 (TCJA). I doubt I will be regaling the youngsters with stories about these changes to the tax code 32 years from now - but you never know. TCJA went into effect for the 2018 tax …
Were Your Taxes Lower in 2018?
We are nearing the end of the first tax season post Tax Reform, formally known as the "Tax Cuts and Jobs Act". The majority of filers saw a reduction in their tax liability this year as noted by my colleague Bill Starnes. Many people, however, got lower refunds. This is because their tax withheld during the year was less. Your tax refund is not your tax liability. Your tax liability is the amount of tax you owe. Your tax liability in 2018 compared to 2017 depends on a lot of things. Whether you itemized or took the standard deduction Whether you are self-employed and got the new Qualified Business Income Deduction Whether you have children and how old they are …
