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2 weeks ago
At 70-1/2 I started uring my traditional IRA to make a QCD. How will this affect my tax bill? since I don't have to claim it as income will it have no impact?
2 weeks ago
I've done several energy improvements on my home, all that come with an energy tax credit. What documentation do I need to file to assure the credits are reflected on my 2025 tax return?
2 weeks ago
I have the option of not having any state taxes withheld from my pension so I stopped the state withholdings and am not putting $400 a month in savings in anticipation of having a possible federal bi...
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I have the option of not having any state taxes withheld from my pension so I stopped the state withholdings and am not putting $400 a month in savings in anticipation of having a possible federal bill at the end of the year. Should I instead be making prepayments to the IRS? Last year I ended up owing an additional $1700 in fed taxes and had it taken from the surplus from my state withholdings. If I should be making prepayments because my liability last year was over $1000, can I do catchup in this 4th Q of 2025 without any penalty for underpayment during the year?
2 weeks ago
I am so sorry for your loss. Dealing with the necessary financial details after the passing of your parent is certainly a challenge, but I can clarify your question regarding the Required Minimum Dis...
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I am so sorry for your loss. Dealing with the necessary financial details after the passing of your parent is certainly a challenge, but I can clarify your question regarding the Required Minimum Distributions (RMDs).
As you inherited the IRA's in 2025, all distributions must be made by the end of the 10th year after your parent's death (exception if you are considered an "eligible designated beneficiaries", I presume that you do not meet those criteria to be considered an eligible designated beneficiary).
If your parent had begun RMDs before death, then you as the designated beneficiary must continue RMDs each year during the 10-year period. Keep in mind that you must take the calculated RMD amount in 2025 if your parent did not take it prior to passing away.
As to what is the best stategy for taking the RMD's over the next 10 years, the answer really depends on your specific situation. Do you expect your income to significantly increase or decrease over the next 10 years? Do you have dependents currently that may no longer be your dependents throughout that entire time? Are there tax credits that you may be eligible for at lower income levels that you may phase out of if your income was higher (such as Education Credits)? As there are many details that need to be taken into account to address that question, I would recommend that you seek out a local tax professional who can review your specific situation and provide guidance that best suits your situation.
2 weeks ago
I just got a message from Keela Robinson, VP TT dated October 20, 2025 which states the following from the next to last paragraph: "Plus, we’re providing a special offer to our desktop customers: If...
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I just got a message from Keela Robinson, VP TT dated October 20, 2025 which states the following from the next to last paragraph: "Plus, we’re providing a special offer to our desktop customers: If you purchase TurboTax Desktop for tax year 2025 and cannot install it on Windows 10, we have you covered. You will receive an in-product offer to switch to our TurboTax Online Premium service at no additional cost (includes one federal and one state return)." Maybe worth a try? Any thoughts, anyone?
2 weeks ago
The figures for the 2025 Income-Related Monthly Adjustment Amount (IRMAA) are officially set by the Centers for Medicare & Medicaid Services (CMS) and are based on your 2023 Modified Adjusted Gross I...
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The figures for the 2025 Income-Related Monthly Adjustment Amount (IRMAA) are officially set by the Centers for Medicare & Medicaid Services (CMS) and are based on your 2023 Modified Adjusted Gross Income (MAGI). The standard Part B premium for 2025 is $185.00 per month.
Here are the 2025 IRMAA brackets for an individual who files a single tax return, including the total monthly Medicare Part B premium they would pay in each tier:
2023 MAGI (Single Filer)
Standard Premium + IRMAA Surcharge
Total Monthly Part B Premium
$106,000 or less
$185.00 + $0.00
$185.00
Above $106,000 up to $133,000
$185.00 + $74.00
$258.00
Above $133,000 up to $167,000
$185.00 + $185.00
$370.00
Above $167,000 up to $200,000
$185.00 + $295.90
$480.90
Above $200,000 up to $500,000
$185.00 + $406.90
$591.90
$500,000 or above
$185.00 + $443.90
$628.90
MAGI Calculation: Your MAGI is your Adjusted Gross Income (AGI) plus certain types of non-taxable income, most commonly tax-exempt interest (like from municipal bonds).
Part D Surcharge: There is also a similar IRMAA surcharge applied to Medicare Part D (prescription drug) premiums, which is added to your specific plan premium. The surcharge tiers use the exact same MAGI brackets listed above.
For additional information see:
CMS Medicare Fact Sheet
Medicare Premiums: SSA Fact Sheet
Please feel free to reach out with any additional questions or concerns you may have and
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2 weeks ago
Did you use the 703 worksheet on the back of the SSA-1099? The 703 is a worksheet for you to see how much of SS is taxable but it can be tricky to fill out and you might not come up with the right ...
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Did you use the 703 worksheet on the back of the SSA-1099? The 703 is a worksheet for you to see how much of SS is taxable but it can be tricky to fill out and you might not come up with the right amount. And on your other posts I figured you over reported the taxable amount on line 6b by $8. How much more refund did you get?
2 weeks ago
I thought I read somewhere it was like it never happened. It is treated like just a distribution from the IRA instead of a conversion.
2 weeks ago
Thank you for the detailed history and detailed questions.
Firstly, "is the distribution chosen, the best option?" Since they had him certify to a Single Life Annuity, did he have another opti...
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Thank you for the detailed history and detailed questions.
Firstly, "is the distribution chosen, the best option?" Since they had him certify to a Single Life Annuity, did he have another option? The annuity may need to be reviewed by a financial adviser. If this was a Cash Balance Plan there are options to roll the lump sum into an annuity, an IRA, or other qualified retirement plan.
"Will the IRS impose penalties for non-withdrawals?" It depends on what kind of plan it was. For example, Roth IRAs do not have a RMDs.
A Cash Balance Plan is a defined benefit plan and considered tax-deferred. Distributions are reported as ordinary income in the year distributed (not earned). So if he left California in 2017, there would be no state liability if he received the distribution in 2024. Furthermore, there would be no amendment for prior years on the earnings. However, Cash Balance Plans do require RMDs and so an amendment of the previous federal returns to calculate the penalties would be appropriate.
If the IRS imposes penalties on the late RMD, the IRS will impose them on the tax payer.
2 weeks ago
If you use TurboTax for your 2025 tax return, you do not do any calculations for SS. You just enter the SSA1099 and let the software do its job. TurboTax will do all of the calculations and deter...
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If you use TurboTax for your 2025 tax return, you do not do any calculations for SS. You just enter the SSA1099 and let the software do its job. TurboTax will do all of the calculations and determine how much of the SS is taxable.
Go to Federal> Wages & Income>>Retirement Plans and Social Security (SSA1099 and 1099RRB) to enter your SSA1099.
2 weeks ago
@brandy012678 wrote:
Hi to whom this may concern,
I need to know how do I send the docs the IRS has asked me to send.so that I can submit my taxes
W775gk yoú
What ...
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@brandy012678 wrote:
Hi to whom this may concern,
I need to know how do I send the docs the IRS has asked me to send.so that I can submit my taxes
W775gk yoú
What documents are you referring to? How they are sent is explained in the IRS notice you received requesting the documentation.
2 weeks ago
how do I determine if I need to prepay taxes for 2025. I just retired this year so our joint income is considerably less than 2024.
2 weeks ago
Any net operating loss carry over will certainly help reduce your taxable income. The MFJ both over 65 standard deduction gives you $33,200 before you have taxable income. You would initially be in...
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Any net operating loss carry over will certainly help reduce your taxable income. The MFJ both over 65 standard deduction gives you $33,200 before you have taxable income. You would initially be in the 10% bracket until your taxable income reaches $23,850. After that, you cross over into the 12% bracket and remain there until your income reaches $96,950. The big jump to 22% occurs at this point. Here is a great tool that may help you calculate where you'll land.
I'm glad to hear you are doing some tax planning regarding your retirement withdrawals.
Hope this helps!
Cindy
2 weeks ago
1 Cheer
Since your husband turned 73 in 2025, he is required to start taking Required Minimum Distributions from his IRA's beginning with tax year 2025. You are correct, that since 2025 is the first year of...
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Since your husband turned 73 in 2025, he is required to start taking Required Minimum Distributions from his IRA's beginning with tax year 2025. You are correct, that since 2025 is the first year of RMD's, he can choose to take the 2025 RMD distribution anytime in calendar year 2025 or up until April 1, 2026. However, the option to delay taking the RMD until April 1 of the subsequent year is only available for the first year of RMD's, so if he delays the 2025 RMD until early 2026, he will effectively have to take two distributions in calendar year 2026 - the RMD for 2025 taken before April 1, 2026 as well as the 2026 RMD that must be taken by December 31, 2026. In this situation, both distributions would be considered taxable income in calendar year 2026.
Regarding the fact that he has more than one IRA account, the RMD must be calculated separately for each IRA. However, the total RMD for all IRAs can be taken from any one or more of the IRAs.
Bear in mind the above only works if all the retirement funds are IRA accounts. You cannot mix and match RMD requirements between an IRA and other types of retirement accounts. For example, if you have an IRA account and a 403(b) amount that each has an RMD, you cannot take the IRA RMD from the 403(b) account.
Similar to the rules for Required Minimum Distributions from IRA accounts, if a person had more than one 403(b) plan, they must calculate the RMD separately for each 403(b) account, but can take the total RMD amount from one or more of the 403(b) accounts.
However, RMDs from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.
Although you did not ask this question, please know that even if you are filing a joint tax return, a distribution from an IRA in your name cannot be used to satisfy his RMD requirement, and vice versa.
So, as long as the accounts you are referencing are all IRA accounts, yes, he can take the total amount of the required distributions from any of the IRA accounts he has.
As to minimizing tax liability, that depends on your specific tax situation. In some cases it may be beneficial to wait until 2026 and take both the 2025 and 2026 RMD's, if your income in 2026 will be lower than it is in 2025. To fully answer that question, you would need to run a model of your 2025 and your 2026 anticipated income and deductions and then alter the numbers to show the impact of taking the 2025 RMD in calendar year 2025 or calendar year 2026. You may want to reach out to a local tax professional (or sometimes your investment advisor can assist) to determine what is the best tax-advantaged decision for your specific situation.
2 weeks ago
85% of 47,146 is only 40,074. So that is less than 40,082. How much refund or tax due (line 35a or 37) was on your original return? How much extra refund did you get? It’s possible the IRS re...
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85% of 47,146 is only 40,074. So that is less than 40,082. How much refund or tax due (line 35a or 37) was on your original return? How much extra refund did you get? It’s possible the IRS reduced the taxable amount of some other income like on 1099R lines 4b or 5b.
2 weeks ago
Some information from Social Security to help you understand the "parts" of Medicare:
https://www.ssa.gov/medicare/plan/medicare-parts
2 weeks ago
Medicare Part B is medical insurance that covers outpatient care, preventive services, durable medical equipment, and medically necessary doctor visits. It complements Part A (Hospital Insurance) and...
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Medicare Part B is medical insurance that covers outpatient care, preventive services, durable medical equipment, and medically necessary doctor visits. It complements Part A (Hospital Insurance) and is part of Original Medicare. Key costs include a monthly premium, an annual deductible, and a 20% coinsurance for many services, though costs can vary based on income.
Medicare Part D is an optional, private insurance plan that helps cover the cost of prescription drugs for people with Medicare. Eligibility requires having Medicare Part A or Part B and living in the plan's service area. While most plans have a monthly premium, some $0-premium options are available, and all plans involve additional costs like copayments and deductibles. It is crucial to compare plans because coverage and costs vary widely.
2 weeks ago
Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income al...
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Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits. When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.
What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was $18,960. For 2022 it was $19,560 — for 2023 $21,240) For 2024, $22,320. For 2025 it will be $23,400
After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.
To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040
https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable
You need to file a federal return if half your Social Security plus your other income is
Single or Head of Household $25,000
Married Filing Jointly $32,000
Married Filing Separately $0
Some additional information: There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.
IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS
https://www.ssa.gov/manage-benefits/request-withhold-taxes
https://www.irs.gov/forms-pubs/about-form-w-4-v
2 weeks ago
I calculated myself I may use turbo tax for 2025 My husband receives a pension, I work part time and our total income for married filing jointly exceeds the $32,000
2 weeks ago
Will I have to pay state and federal in 2026?