According to a 2024 report by the Treasury Inspector General for Tax Administration (TIGTA), Americans made early distributions of $12.9 billion in 2021. Early distributions—those taken before age 59 ½—are subject to a 10% additional tax or early distribution penalty. To that end, the following are some of the strategies that you can utilize to […]
How to Avoid the 10% Early Distribution Penalty: Part 1 of 2 Read More »
The recent short selling activity in GameStop has motivated some to become new “investors” because of the idea of making fast money through such trading. However, many are unaware of the dangers of short selling, along with the tax implications that come along with any potential quick profits. One of the dangers in short selling
Short Selling and Tax Consequences Read More »
Certain red flags could increase your chances of getting the attention of the IRS. Luckily, the chances that your tax return will be chosen for an audit are very low. The IRS audited les than 0.5% of all tax returns in 2019. The majority of exams were by mail, which means that most taxpayers never
IRS Audit Red Flags Read More »
The size of the US Tax Code has increased quite a bit over the last 100+ years. Two of our most important historical documents, the Gettysburg Address and the Declaration of Independence have 272 and 1,337 words, respectfully. Our Federal Tax Code was formally established in 1913 and had 9,337 words. It has grown to
Our Massive Tax System – By the Numbers Read More »
Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money. We all want to mitigate taxes and make sure you pay exactly what you owe – and not a penny more – but that doesn’t always make it feel any easier when writing
What Do Your Taxes Pay For? Read More »
By April 19, 2019, 137 million taxpayers had filed their federal income tax returns. And they all made decisions about deductions and credits – whether they realized it. When you take the time to learn more about how it works, you may be able to put the tax code to work for you. A good place
How to Make the Tax Code Work for You Read More »