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Posts Tagged ‘Married Filing Jointly’
4 Reasons Everyone Should Contribute to a Roth IRA
1) Tax – Free Distributions
If the Roth IRA account is open for at least 5 years and the taxpayers is over age 59 1/2, then all of the distributions from the Roth IRA are tax-free.
2) Take Your Contributions Back at Any Time
Unlike a Regular (or Traditional) IRA, contributions to a Roth IRA are not income tax deductible. Because the contribution is not … Continue reading »
Why The New Medicare Tax May Cost You More Money
Current Medicare Tax
Currently taxpayers pay 1.45% Medicare Tax on their earned income. This is from a W-2 for employees and net-income from self-employed individuals. The employee pays this amount and the employer matches it, therefore they remit 2.9% to the government. A self-employed individual is considered to be both the employer and employee and therefore currently pays 2.9% Medicare Tax.
The Difference Between the FBAR and IRS Form 8938
Investors with offshore accounts must be familiar with the filing requirements of the FBAR and IRS Form 8938.
FBAR
Any U.S person with offshore accounts that had more than $10,000 in them any time during the year must file Form TD F 90-22.1, the so-called FBAR (Report of Foreign Bank and Financial Account). A U.S. person includes individuals, partnerships, corporations and estates and trusts. This form must … Continue reading »
7 Things Connecticut Taxpayers Should Do Before Filing Their Income Tax Return
1) Don't panic. The returns are due on April 17th this year. This is due to April 15th falling on the weekend and April 16th being a holiday in Washington DC. If you can't get your return completed and filed on time, file an extension. The federal form is 4868 and the Connecticut form is CT-1040-EXT. This will allow you until October 15th … Continue reading »
3 Reasons To File IRS Form 8938, Statement of Specified Foreign Assets
1) You have a "Specified Foreign Financial Asset" which exceeds the filing requirements
Financial Assets that are subject to this form are: A Financial Account maintained by a foreign institution and the following assets not held in an account with a foreign institution:
* Stock or security issued by a foreign person
* Financial instrument where the issuer is not a U.S. Person
* And any interest in a foreign … Continue reading »
