IRS gives retirees a longer life in 2022

In early 2020, the CARES Act dropped the required minimum distribution (RMD) requirement for year 2020. However, if you received a RMD from your retirement account in prior years, you may realize that life expectancy tables are used to calculate your annual RMD amount. Don’t miss: IRS transcripts masked for identity protection To calculate an …

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Your stimulus check is in the mail

The Internal Revenue Service has fired up the printers to get stimulus checks into American’s pockets. They began processing the payments yesterday. The official payment date is January 4, 2021. The economic impact payments are part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 signed into law on Sunday night. The act …

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Texas no longer sending reminders through the mail

As state governments are still working to catch up with technology, Texas just released a notice to all 2021 Franchise Tax filers that they will no longer be receiving the “reminder to file or seek an extension” notices through the mail. Rather they will be emailed to the email on file. If you do not …

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IRS expands Identity Protection PIN Opt-In program to all taxpayers

Here is some good news for any taxpayer concerned about having their identity stolen. Beginning in January, the IRS Identity Protection PIN Opt-In program will be expanding to all taxpayers who can properly verify their identity. The PIN is a six-digit number assigned to eligible taxpayers created to help prevent their Social Security number from …

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Are you ready to file your 2020 taxes?

There’s no doubt about it that the year of 2020 has been one for the books. More reason to make sure that you are ready to file your 2020 tax return, right? Here are a few things to look at to prepare. Double check your withholding and make changes as soon as possible Don’t miss: …

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Could Prop 105 save Prop 208 from being repealed?

As you have probably heard, Arizona Proposition 208 has been called and passed. There has been a lot of commentary surrounding the passing of Proposition 208, from people who approve and disapprove of the proposition. Individuals who disapprove have been looking into repealing the proposition due to the surcharge of 3.5% additional tax on the …

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Loans from an IRA – Can you take them?

We see a lot of questions regarding loans from an IRA account. The short answer is you are not allowed to take a loan from an IRA or IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. You also are not permitted to roll over an outstanding loan balance from a retirement plan into …

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Taxing legal marijuana – Arizona Prop 207 sales tax

If you are an Arizona resident, you likely know that this year the legalization of marijuana is on our ballot. Proposition 207 would legalize the possession and use of marijuana for adults 21+, allow growing of marijuana plants, licensing of marijuana retailers and expungement of marijuana related crimes. One aspect of the proposition that many …

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IRS Announces Change in Income Ranges to Determine IRA Eligibility in 2021

Cost-of-living adjustments have been made to the dollar limitations related to retirement and pension plans for 2021. Contributions to traditional IRAs can be deducted by taxpayers meeting certain conditions. If the taxpayer (or their spouse) is covered by a retirement plan at work, the deduction may be affected. The new income phaseout ranges are below: …

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4th quarter 2020 check in

Did anyone else feel like this tax season was never-ending? Now that October 15th has come and gone, it is time to shift gears over to 2020 taxes. For many tax professionals, November and December is the time to sit down (likely virtually this year) with clients. It is a great time to see how …

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