file - Linkenheimer LLP CPAs & Advisors

Why You Shouldn’t Wait to File Your 2018 Income Tax Return

The IRS opened the 2018 income tax return filing season on January 28. Even if you typically don’t file until much closer to the April 15 deadline, this year consider filing as soon as you can. Why? You can potentially protect yourself from tax identity theft — and reap other benefits, too.

What is tax identity theft?

In a tax identity theft scheme, a thief uses your personal information to file a fraudulent tax return early in the filing season and claim a bogus refund.

You discover the fraud when you file your return and are informed by the IRS that the return has been rejected because one with your Social Security number has already been filed for the same tax year. While you should ultimately be able to prove that your return is the legitimate one, tax identity theft can cause major headaches to straighten out and significantly delay your refund.

Filing early may be […]

By Linkenheimer LLP|2020-09-03T20:04:18+00:00February 6th, 2019|fraud, New Tax Laws, taxes, w2|0 Comments

File and Suspend Method of Claiming Social Security Benefits to Be Eliminated

The Bipartisan Budget Act of 2015 (H.R. 1314—the Act), signed by President Obama on 11/2/15, eliminates the file and suspend method, a popular strategy used by married couples to maximize their lifetime Social Security benefits. Under this approach, a higher earning spouse claims benefits at his full retirement age (currently age 66) but suspends the benefits until a later date (e.g., at age 70 or sooner, if desired), allowing the Social Security credits to continue to grow. The lower earning spouse claims benefits based on the higher earning spouse’s earning record, which are more than the benefits based on his or her own earnings record. In a provision labeled “closure of unintended loopholes,” the Act effectively eliminates this opportunity for claims filed after 4/30/16 (180 days after enactment). [ Note: Those who’ve been using this method or other eligible individuals who file to claim benefits under this method within the next 180 days should not be affected.]

By Linkenheimer LLP|2015-12-02T19:33:46+00:00December 2nd, 2015|social security|0 Comments

You Can Unwind Roth IRA Conversion Before October 15, 2014

The market has generally been up since 2013, but if the value of your IRA has declined since your 2013 conversion date, or if your cash situation has changed significantly since you decided to convert, you can “recharacterize” the conversion transaction and avoid the tax. Generally speaking, you can unwind the conversion with a trustee-to-trustee transfer from the Roth back to a traditional IRA no later than 10/15/14. If you have already filed your 2013 return, you will need to amend.

Please call us if you have questions.

By Linkenheimer LLP|2020-09-03T20:05:45+00:00October 7th, 2014|ira, retirement, roth ira|0 Comments