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2 weeks ago
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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...
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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?
2 weeks ago
You don’t calculate that yourself. Turbo Tax automatically calculates the taxable amount. Did you enter the full amount of SS? Social Security is on 1040 line 6a and any taxable amount on 6b. S...
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You don’t calculate that yourself. Turbo Tax automatically calculates the taxable amount. Did you enter the full amount of SS? Social Security is on 1040 line 6a and any taxable amount on 6b. Seems odd the IRS gave you a refund. Usually they say you didn’t report the right taxable amount and owe more tax. If you calculated it yourself where or how did you enter it? Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches: Married Filing Jointly: $32,000 Single or head of household: $25,000 Married Filing Separately: 0 To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side. Or use the IRS worksheet in the 1040 instructions page 32 https://www.irs.gov/pub/irs-prior/i1040gi--2024.pdf
2 weeks ago
Lines: 6a = 47,146 6b= 40,082 ( 85% of income taxable) Apparently the percentage of taxable income was less since I received a refund. I am not sure what our taxable income is for our so...
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Lines: 6a = 47,146 6b= 40,082 ( 85% of income taxable) Apparently the percentage of taxable income was less since I received a refund. I am not sure what our taxable income is for our social security benefits
2 weeks ago
If you are under age 59-1/2, you will pay the regular income tax on the conversion, and a 10% penalty for early withdrawal. If you also withdraw earnings (increase in value in the Roth) that is also...
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If you are under age 59-1/2, you will pay the regular income tax on the conversion, and a 10% penalty for early withdrawal. If you also withdraw earnings (increase in value in the Roth) that is also subject to regular income tax plus a 10% penalty.
If you are over age 59-1/2, you pay income tax on the conversion per the normal rules, but you don't pay an additional penalty for early withdrawal. If you withdraw earnings, and the Roth IRA has been open less than 5 years, the earnings are taxable (but without the 10% penalty).
2 weeks ago
You do not have to calculate it if you enter your SSA1099's correctly. The software does all of the calculations for you. If you are filing a joint return, you need to make sure you enter each S...
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You do not have to calculate it if you enter your SSA1099's correctly. The software does all of the calculations for you. If you are filing a joint return, you need to make sure you enter each SSA1099 under the correct spouse's name. And watch carefully for the screen that asks if you had income from a foreign country---that screen messed a lot of people up. Check your Form 1040 and make sure that you see amounts on lines 6a and 6b.
2 weeks ago
Hello @pk I was hoping you would look into this for me. This is greatly appreciated! Here are my answers: (a) Which country are they from and are they both resident and citizen of that country? -...
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Hello @pk I was hoping you would look into this for me. This is greatly appreciated! Here are my answers: (a) Which country are they from and are they both resident and citizen of that country? - They are both citizens of Ukraine. I am not sure they can be considered residents of Ukraine as they have not been living there since March 2022. They visit Ukraine once in a while but do not stay there for more than a couple of weeks per year. (b) When did they enter the US with J visa and exact date when they left the UJSA ? - They have entered the US with J visas in January 2023. Since then they have stayed in the US for the majority of time, however they had a few short trips abroad. These trips combined do not change the fact that they have met substantial presence test in the US in 2025. They have left the US on September 14th 2025. (c) Did they file any forms with the IRS or Immigration stating that they are leaving the US or was it just their employment/research visa terminated ? - They have not filed anything with the IRS or Immigration except for 1040 NR for tax years 2023 and 2024. The reason for leaving the US in Sep 2025 was due to the end of the employment/research visa. (d) Should I assume that their ONLY financial connection to US post departure is passive income -- bank interest ? Or is there more and substantial connection ? - There is no other connection except bank interest and a 401k. Generally , I would try return with two different scenario ( assuming there are no other contravening facts :( 1. AS a dual status --- Jan 01 2025 through Sept. 30th Sept -- Resident and being taxed on world income, itemized deduction and 1040-NR for earnings ( US sourced ONLY ) for the last quarter of the year 2025 2. AS a resident for the whole year, form 1040, taxed on world income, standard deduction and allowing foreign earnings to be taxed by the USA, foreign tax credit for the taxes paid to home country. This is assuming that there is no contravening facts . - The second scenario is preferable if allowed by regulations since it not only allows for standard deduction but also for filing jointly. Since my father has no income it can make a big difference. Best, Illia
2 weeks ago
2 weeks ago
I converted a home I own from a residence to a rental halfway through 2025. My property tax bill for the year is payable in either December or January. I understand that if I pay it in December, I wo...
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I converted a home I own from a residence to a rental halfway through 2025. My property tax bill for the year is payable in either December or January. I understand that if I pay it in December, I would deal with it on my 2025 return and apportion the bill based on rental days vs. residence days, with the rental portion being deductible on Sch E and the remainder being deductible on Sch A, if I itemize. However, if I pay the property tax bill in 2026, I would deal with it on my 2026 return… would I still be expected to allocate between residence days and rental days, or would I get to claim 100% of it as a Sch E deduction in 2026 (Assuming the home is a rental for all of 2026)?
2 weeks ago
If you move a stock from your IRA to a regular investment account, your basis is the value on which you were taxed when you took the stocks out of the IRA. You have a taxable gain if you sell the st...
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If you move a stock from your IRA to a regular investment account, your basis is the value on which you were taxed when you took the stocks out of the IRA. You have a taxable gain if you sell the stocks for more than your basis, and you have a loss if you sell for less than your basis, and gains and losses are taxed according to the usual rules for capital gains and losses.
In other words, if you withdraw 10 shares at $100 per share, you should get a 1099-R showing a $1000 distribution. That is your basis in the stocks. If you later sell for $110 per share, you have a $100 taxable gain, but the entire $1100 is not taxed, just the gain.
2 weeks ago
The amount of Social Security retirement benefits is based on Lifetime earnings and your age at retirement.
Regarding lifetime earnings, the highest 35 years are used to calculate average month...
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The amount of Social Security retirement benefits is based on Lifetime earnings and your age at retirement.
Regarding lifetime earnings, the highest 35 years are used to calculate average monthly earnings. Each year is indexed for inflation to approximate what earnings for that year would be in today’s dollars. There is also a maximum amount of earnings each year that are subject to Social Security tax for that year.
If you have worked for fewer than 35 years, the Social Security Administration (SSA) fills in the missing years with zeros, which significantly lowers your average benefit.
If you have worked for 35 or more years, the SSA uses your actual highest-earning years.
The Social Security Administration will calculate the impact your current income has on your social security benefits. This process happens automatically every year that you have new earnings reported. You should receive a letter from the Social Security Administration and possibly retroactive benefit owed once the Social Security Administration has processed your tax records.
The Social Security Administration website has a wealth of information regarding benefits, so I would encourage you to take a look at information there if you wanted more details. You can find their website at SSA Website
2 weeks ago
1 Cheer
A non-qualified Roth distribution - because you didn't meet the 5-year rule - would cause any earnings withdrawn as part of the distribution to be taxed at your ordinary income tax rate. If you are ...
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A non-qualified Roth distribution - because you didn't meet the 5-year rule - would cause any earnings withdrawn as part of the distribution to be taxed at your ordinary income tax rate. If you are over 59 1/2, there is no penalty.
Money contributed to a Roth is always taxed prior to the contribution and can be withdrawn tax free.
You pay income tax on the money, then put the net amount into the Roth IRA. (No tax deduction is taken). You convert pre-tax dollars into the Roth IRA, which creates a taxable event for that year, where the converted amount is added to your income and taxed.
Please take a few moments to read this great article.
Hope this helps!
Cindy
2 weeks ago
Short answer: yes. However the calculation is inflation-adjusted. So $50K of salary in 2024 will not necessarily replace $25K of salary from 1984. But if you have zeroes in your top 35 earning yea...
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Short answer: yes. However the calculation is inflation-adjusted. So $50K of salary in 2024 will not necessarily replace $25K of salary from 1984. But if you have zeroes in your top 35 earning years, your current earnings should replace one of those zeroes and result in a benefit recalculation. Contact the SS administration for more details about your benefits.
2 weeks ago
1 Cheer
Once you hit age 59-1/2 (and your Roth IRA is more than 5 yers old), there is no need to track the source of your Roth IRA funds as coming from contributions, conversions or earnings. All withdrawal...
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Once you hit age 59-1/2 (and your Roth IRA is more than 5 yers old), there is no need to track the source of your Roth IRA funds as coming from contributions, conversions or earnings. All withdrawals from a Roth IRA are tax-free regardless of the source of the money.
(If you do want to keep track, you do that yourself, it is not part of any tax form and does not get reported to the IRS. For someone under age 59-1/2, if they claim a withdrawal is tax-free because it is contributions, it is up to the taxpayer to prove it from their records if audited.)
2 weeks ago
Hi, Our 2024 tax return was corrected by IRS due to a mis calculation of our social security income tax percentage. We did get a refund after it was corrected, so we calculted too high apparently. ...
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Hi, Our 2024 tax return was corrected by IRS due to a mis calculation of our social security income tax percentage. We did get a refund after it was corrected, so we calculted too high apparently. Please advise how to simply calculate our ss income tax percentage correctly for 2025, also if we need to amend prior years. Thank you.