My Retirement Blog

Tag: Taxes

  • 2010 Income Tax Brackets

    Every year in mid-September, the Bureau of Labor Statistics releases inflation data for the last year and tax mavens get to calculating how much all the various tax numbers will move. It turns out inflation was a mere 0.19%, meaning most of the figures won’t change at all. For referential purposes, the 2010 IRS Tax…

  • Roth IRA Conversion Could Trigger Tax Underpayment Penalty

    If you convert a Traditional IRA into a Roth IRA this year, remember that the balance you convert will be considered income and so you may be penalized for underpaying your taxes. There are several safe harbor conditions that would save you from the underpayment penalty (for example, if you did not owe taxes last…

  • How Are Social Security Benefits Taxed?

    Recently a reader asked: I would like to know the breaking points for annual income that affects the percentage of social security that is taxable. example…low income only 15% is taxable. Social Security is normally not taxable unless you earn over a certain amount. This lower amount is called the base amount and depends on…

  • Tax Underpayment Penalty on Roth IRA Conversions

    If you’re considering converting your Traditional IRA to a Roth IRA, remember that you will need to pay taxes on the conversion amount and you may be subject to an underpayment penalty because of it (if you fail to file estimated tax payments). The federal tax law regarding underpayment is straightforward. If you pay more…

  • Rules on Claiming Dependents

    The follow rules regarding dependents was accurate for the 2007-filing year, you should review any updated dollar limits as the IRS publishes them and, as always, consult with a tax professional before making any decisions. When it comes to dependents, the rules are fairly straightforward. It’s important for you to figure this out because it…

  • Short Term & Long Term Capital Gains Tax

    When it comes to taxes, it makes a big deal how long you’ve held your investments. If you’ve held your investments for over a year before selling, you are taxed at the long term capital gains tax. If you’ve held them for less than a year before selling, you’re taxed at the short term capital…

  • Contributing to a Non-Deductible Traditional IRA

    If you earn over a certain amount, the Roth IRA option isn’t available to you, you’re left to go after the Traditional IRA. If you participate in a 401(k), you can’t even deduct the contributions to a Traditional IRA. So, why would anyone ever contribute to a non-deductible Traditional IRA? If you did, you’d be…

  • Last Minute Tax Retirement Moves

    It’s April 14th, tomorrow is tax filing day, have you made all your contributions for 2007? Now’s your last chance! IRA Contributions You have until April 15th of the following year to make contributions for that tax year, so you have until April 15th, 2008 to make your contributions to a 2007 IRA. If you…

  • 2008 Federal Income Tax Brackets

    New year means new brackets and limits and all that great jazz! This year the total amount you can contribute to your 401(k) or 403(b) will not increase (remains $15,500) but IRA contributors will be able to put $5,000 towards their retirement (more if you’re in the catch-up category). There are a few other 2008…