Recent News & Blog / Individual Tax
New option for unused funds in a 529 college savings plan
Many parents begin saving with 529 college savings plans when their children are young. What if you have a large 529 plan balance but your child doesn’t need all the money for college? There’s a new 529-to-Roth IRA transfer. Contact the CPA's and business advisors at SEK for more information and tax tips.
If you didn’t contribute to an IRA last year, there’s still time
If you’re gathering documents to file your 2023 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up to the April 15, 2024, filing date and benefit from the tax savings on your 2023 return. Contact the CPAs and business tax advisors at SEK to get the most out of your tax return and for more tax tips.
Filing jointly or separately as a married couple: What’s the difference?
When filing your tax return, a filing status must be chosen. This is used to determine your standard deduction, rates and eligibility for certain tax breaks. If you’re married, should you file jointly or separately? It depends on your situation. In most cases, joint filing saves more tax, but some people save by filing separately. The CPA's and business tax advisors at SEK can weigh your options when preparing your return.
If you gave to charity in 2023, check to see that you have substantiation
Did you give to charity last year? If you made a donation in 2023 but don’t have a letter from the charity yet, request it from the organization and wait to file your 2023 return until you receive it. Additional rules apply to certain types of donations, such as noncash contributions. Contact the CPA's and business tax advisors at SEK if you have questions about donations you hope to deduct on your 2023 tax return.
IRAs: Build a tax-favored retirement nest egg
Traditional and Roth IRAs can help you save for retirement on a tax-favored basis. Contributions to a traditional IRA reduce your current tax bill if you’re eligible, and earnings are tax deferred. However, withdrawals are taxed in full (plus a 10% penalty if taken before age 59½, unless an exception applies). Roth IRA contributions aren’t deductible. But earnings are tax deferred and withdrawals are tax-free if certain conditions are met. Contact the CPA's and business tax advisors at SEK for your tax questions and for more tax tips.
The kiddie tax could affect your children until they’re young adults
The “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. Contact the CPA's and business tax advisors if you want more information or for more tax tips.
It’s possible (but not easy) to claim a medical expense tax deduction
Can you deduct your out-of-pocket medical costs on your tax return? It depends. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical costs are deductible only if you itemize, which means that your itemized deductions must exceed your standard deduction. Contact the CPA's and business tax advisors at SEK to asses if you can claim a deduction, for more tax tips or to answer any of your tax questions.
Don’t overlook taxes when contemplating a move to another state
When you retire, you may want to move to another state, perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. You should also consider property and sales taxes, as well as any state estate taxes. We can answer any questions and file required tax returns. Contact the CPA's and business tax advisors at SEK for your tax questions, tax updates and more tax tips.
Court awards and out-of-court settlements may (or may not) be taxed
Monetary awards and settlements are paid for many reasons. By law, individuals can exclude from gross income damages that are received on account of personal physical injury or physical sickness. Contact the CPA's and business tax advisors at SEK for tax tips, financial guidance and more questions!
2024 Rates & Dates
The IRS recently released the 2024 rates and dates, which includes the following: