Personal Finance Archives - MJW EA & Company LLC

September 5, 2018 Leave a Comment

Third Quarter Estimated Taxes

Third Quarter Estimated Taxes

As the Third Quarter of 2018 winds to a close, we wanted to remind you that estimated taxes are due on or before September 17th. If you are required to pay estimates, we prepared and included pre-addressed envelopes and vouchers with the amounts due in the tax return packet we provided. If we keep your envelopes and vouchers here in our office, please make sure you come in with your checks prior to September 17th so we can mail your estimates out before the third quarter estimated tax deadline. You also have the option to use IRS directPay for Federal estimated tax payments and TSC Website for the State estimated tax payments. If you prefer to send your payments by mail:

Federal estimates should be sent to:
Internal Revenue Service
P.O. Box 37007
Hartford, CT 06176-0007

CT Estimates should be sent to:
Department of Revenue Services
P.O. Box 5053
Hartford, CT 06102-5053
As always, we are here to answer any questions you may have.

https://maryjowalker.com/contact-us/

August 7, 2018 Leave a Comment

IRA owners be aware!

IRA owners need to ensure they are taking appropriate measures to avoid having their IRAs treated as inactive under an unclaimed property statute! New IRS ruling regarding tax treatment of IRAs that become unclaimed property.

In light of the recent change to federal tax law limiting the income tax deduction for state and local taxes, many states are searching for revenue. One increasingly important non-tax source of revenue for states is unclaimed property, which is turned over to the states under a process referred to as escheatment. Over the past few years, state unclaimed property administrators have initiated numerous IRA-focused, multi-state audits of banks, broker-dealers, life insurers and other financial institutions. Under the statutes of most states, traditional IRAs are presumed abandoned—and therefore due for escheat to the states—if there is no owner-generated activity in the account for three to five years after the date for required minimum distributions, i.e., age 70½. These standards are non-uniform by state, and several states purport to count the period backwards, presuming that an account is abandoned at age 70½ if there has been no activity within the prior three to five years. The treatment of Roth IRAs is also non-uniform, and state laws vary on whether age 70½ is a potential trigger for escheat.
The death of the IRA account owner is also a potential trigger for escheat.

To ensure that the state does not get your IRA account as unclaimed property be sure that you have listed beneficiaries on all IRA accounts!

Bottomline: If you are an IRA owner you will need to be extra vigilant to ensure that you are taking steps to avoid having your IRAs treated as inactive under an unclaimed property statute. To avoid escheating an IRA you should take steps such as logging into your IRA account (if you have access online) or contacting the IRA custodian at least every few months.

March 4, 2018 1 Comment

Even Your Paycheck Needs a Check-Up

Following the major changes in the tax law, MJW EA & Company is recommending that taxpayers check their most recent paychecks to help ensure they’re having the right amount of tax withheld for their personal situation.

We are running a simple tax planner after we have prepared your 2017 return so you can see how the new tax rates will change things for you in 2018. Additionally, the IRS has released their updated Withholding Calculator and Form W-4 to help you make sure you have the proper amount taken out of your paychecks.

We are encouraging employees to use the Withholding Calculator to do a quick “paycheck check-up.” Checking your withholding can protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time in 2019.

The Tax Cuts and Jobs Act made many changes in the tax code, including some trade-offs. It doubled the standard deduction but also removed personal exemptions. While it increased the child tax credit, it also limited or discontinued certain deductions and changed the tax rates and brackets.

Because of all the tax law changes it is especially important for certain taxpayers to use the Withholding Calculator to ensure you have the proper withholding. Among those who should check their withholding are:

Two-income families
People with two or more jobs at the same time or who work only for part of the year
People with children who claim credits such as the Child Tax Credit
People who itemized deductions in 2017
People with high incomes and more complex returns. That includes those who owe self-employment tax, the alternative minimum tax, or tax on unearned income from dependents and people who have capital gains and dividends.

The Withholding Calculator asks taxpayers to estimate their 2018 income, along with other items that could have an impact on their taxes, including the number of children claimed for the Child Tax Credit, Earned Income Credit and other items.

It is also good practice to check in throughout the year if your personal situation changes, whether it be a new job, a house sale or purchase or coming into unexpected money. As always, we are here to help.

December 20, 2017 Leave a Comment

Trump Tax Reform

While it’s too soon to know exactly how we should guide our clients through potential tax changes and the Trump tax reform, based on what we do know at this point we are recommending that our clients defer income and accelerate deductions.

1. Prepay your January property tax & Q4 CT estimated taxes – Because the tax bill will cap the deduction for state and local taxes at $10,000 starting next year, you can maximize their deductions in 2017 by paying your January property taxes and Q4 estimate before Dec. 31.
2. Make bigger charitable donations before year end – The GOP tax bill almost doubles the standard deduction to $12,000 for single people and $24,000 for married couples. That means taxpayers whose deductions fall below those caps won’t be able to itemize starting in 2018.
3. Defer income until 2018 – Under the GOP provisions many taxpayers will find themselves in a lower tax bracket next year.

Please know that we are reading everything we can about the new tax plan and will keep you up to date with information that you need to plan ahead for 2018.

As always, we are here to help.

December 11, 2017 Leave a Comment

Fourth Quarter Estimated Taxes

As the Fourth Quarter of 2017 winds to a close, we wanted to remind you that estimated taxes are due on or before January 15th. However, you may benefit from the additional state income tax paid in 2017 on your 2017 Federal Tax Return if you pay your Connecticut estimate by December 31^stinstead of the January deadline.

If you are required to pay estimates, we prepared and included pre-addressed envelopes and vouchers with the amounts due in the tax return packet we provided.

If we keep your envelopes and vouchers here in our office, please make sure you come in with your checks prior to the end of the month so we can mail your estimates out before the deadline.

You also have the option to use IRS directPay for Federal estimated tax payments and TSC for the State. Click here to be brought to the Federal site. Click here to make CT online payments.

Federal estimates should be sent to:

Internal Revenue Service

P.O. Box 37007

Hartford, CT 06176-0007

CT Estimates should be sent to:

Department of Revenue Services

P.O. Box 5053

Hartford, CT 06102-5053

As always, we are here to answer any questions you may have.

Third Quarter Estimated Taxes

IRA owners be aware!

Even Your Paycheck Needs a Check-Up

Trump Tax Reform

Fourth Quarter Estimated Taxes

Federal estimates should be sent to:

CT Estimates should be sent to:

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Third Quarter Estimated Taxes

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