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Ten Tax Planning Tips for 2022

Money Talk

2021) or 90% of current year (2022) tax liability using a W-4 form at work for job-related income tax withholding; withholding for Social Security, a pension, and required minimum distributions through account custodians; and/or quarterly estimated payments using IRS Form 1040-ES.

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What Is a Qualified Retirement Plan?

HR Lineup

However, the tax deduction is limited to a maximum of 25% of the total salary of the employees in this qualified employee benefit plan. SEP – Simplified Employee Pension. As an employer, your contributions towards a qualified plan are tax-deductible. Hybrid plan. SOP – Employee stock ownership plans. Keogh (HR-10).

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Ten Upsides of Inflation

Money Talk

This includes Social Security recipients, retirees with COLA-adjusted pensions, and workers with COLAs stipulated in their job or union contracts. Standard Deduction - The amount of income taxpayers can shelter from income taxes rises with inflation (e.g., When bracket incomes rise, people may be taxed at lower tax rates.

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Ten Benefits of Self-Employment in Later Life

Money Talk

Tax Write-Off for Self-Employment Tax - On line 15 of Schedule 2 (for a 1040 form), self-employed workers can write off the deductible portion of their self-employment tax (calculated on Schedule SE), which will lower adjusted gross income (AGI), a trigger for many other taxes.

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Deducting Business Expenses: Separating Fact From Myth

Kollath CPA

When you’re filing your tax returns, what expenses can you deduct from business income? To start with, a business expense must be both ordinary and necessary to be deductible, according to the IRS. Deducting Business Expenses: Separating Fact From Myth. You must capitalize some costs rather than deduct them.

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An Introduction to IRMAA

Money Talk

A letter from the Social Security Administration (SSA) notifies beneficiaries of their expected benefit, including IRMAA deductions, if any. Many events can affect IRMA including marriage, divorce, death of a spouse, taxable pensions, leaving the workforce, capital gains on the sale of assets, and the start of RMDs.

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The Impact of Indexing: 13 Real World Examples

Money Talk

Pension COLAs - Pension benefits for some retirees are also indexed for inflation. An example is pensions for federal government workers and military retirees and disabled veterans. Other pensions have frozen or suspended COLAs for their retirees (e.g., the New Jersey state pension plan).

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