If you are wondering how to save for your child’s college education, looking into a 529 plan is a good place to start. 529 plans are among the most popular tax-advantaged college savings plans available. The flexibility and tax advantages of the 529 make it well-suited to a wide range of investors.
The world of retirement has changed. With the decline of company pensions and the uncertain future of Social Security, Americans must exercise greater control over their own financial futures with careful planning. Despite this fact, the terrain of retirement remains murky and unexplored for many of us. According to the Department of Labor, fewer than half of Americans have calculated how much they need to save for retirement, and 30% of private sector employees with access to a defined contribution plan do not participate in it. If you have put off planning for your retirement longer than you should, you are far from alone. Taking steps now will allow you to make the most of the working years still ahead and help you to develop a vision of how you will live when they have passed.
When you begin searching for a tax preparer, you encounter a wide range of choices. There is no one right choice for everyone; the right choice for you will depend a great deal upon your individual preferences and tax needs. The only way to find the best fit is to ask questions. The following questions can help you learn more about the tax preparers you are considering and decide which is the best fit for you.
Do I have to report all of my 1099 income?
Yes! In fact, if you are due to receive one or more 1099 forms this tax season, you bear a more burdensome recordkeeping duty than employees whose income is reported only on W-2s. Particularly if you are an independent contractor, you may receive a large number of 1099s. Some who have hired you may neglect to send the form to you. Regardless of the number of forms you receive or fail to receive, you are responsible for reporting to the IRS all income that should have been reported on this form. The IRS receives a copy of each Form 1099. Failure to report one or more of these amounts will certainly trigger questions from the IRS, if not a full audit.
Many taxpayers find themselves in this situation at one time or another in their lives. Maybe your financial picture has shifted significantly in the past year, and you did not foresee the consequences the changes would have on your tax bill. Maybe you were diligent about planning, but a hardship such as job loss, illness, or divorce has made it impossible to set aside the funds necessary to pay. Whatever the reason, you find yourself looking at a tax bill that you cannot afford to pay on time. No one wants to be in this situation, but ignoring the problem is the worst thing you can do. The IRS has the power to garnish wages, seize bank accounts, and put liens on your property. If you owe more than you can pay, consider these tips to avoid such drastic and undesirable collection activities.
Arrive prepared for your tax appointment. Having everything ready well ahead of time will streamline the tax preparation process, get your filing completed earlier, and ensure that you have the opportunity to claim all the tax benefits to which you are entitled.
If you are planning on selling your home, it is important to plan for any resulting tax consequences. Those consequences will depend upon a number of factors.
Like an immediate annuity, the purpose of a deferred annuity is to provide an income stream in retirement. It can have either fixed or variable returns, and it can offer a variety of term options, including life, joint life, a predetermined period of years, or a hybrid of these. Deferred annuities can be part of a sound investment strategy, but one should invest in them only after understanding the precise costs and benefits of doing so. An independent, qualified investment planning professional can help you understand how these annuities might fit into your overall strategy.
Many people at or near retirement age are advised to invest in annuities in order to guarantee an income stream in retirement. It is important for anyone considering purchasing an annuity to understand all of the costs and benefits involved. Before investing in an annuity, understand how it fits into your overall investment strategy, and compare it to other financial products that can serve the same goals. Seeking the advice of an independent financial advisor who is knowledgeable about investment planning is the best way to get clear, honest answers to your questions.
As a small business owner, you may believe that your company can’t afford a 401(k) plan. You are not alone. According to Forbes, although 99% of businesses with over 500 employees offer a 401(k) or comparable plan, only 24% of businesses with fewer than 50 employees do so. The truth is, however, that even the smallest business, including a sole proprietorship with no employees, can implement a cost-effective 401(k). For a business with employees, offering a 401(k) can help to attract and retain quality hires. According to a study by ADP, 80% of employees view retirement benefits as a key factor for accepting a position. Below is some basic information about two of the most popular options available to meet the retirement plan needs of small business owners. Others options are also available. Boelman Shaw Tax & Financial Planning can help you select the right 401(k) to suit the needs of your Des Moines small business.