Tax Archives - Retirement Income Solutions

04 Nov

Damian Sylvia Posted in General No comments

Are Capital Gains Taxes Changing?

There are a lot of questions about President Biden’s Build Back Better plan and potential tax law changes, including an adjustment to capital gains taxes.

Tax & Estate Strategies for Married LGBTQ+ Couples

The 2015 Obergefell v. Hodges Supreme Court decision streamlined tax and estate strategizing for married LGBTQ+ couples. If you are filing a joint tax return for this year or are considering updating your estate strategy, here are some important things to remember. Keep in mind, this article is for informational purposes only and is not […]

04 Feb

Damian Sylvia Posted in Retirement No comments

How to Prepare for Tax Season

In this guide, we’ll explore ways to help you prepare for the upcoming tax season.

Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.

April 15, 2021 is the deadline the Internal Revenue Service sets for filing your 2020 tax returns. If you believe you will miss that deadline, you should consider filing for an extension.

Here’s a quick summary of the major changes for 2020:^1,2

Each of the tax brackets will see an increase.
The deduction limit restrictions will increase for traditional IRAs.
A rise in income limits for Roth IRA contributions.
Contribution limits increase for employer-sponsored plans.
A rise in standard deductions for every filing status
A rise in limits for HSA contributions.
A rise in estate tax exemption limits.
No required minimum distributions (RMDs) for 2020

Remember, if you spend your Health Savings Account funds on nonmedical expenses before age 65, you may be required to pay ordinary income tax as well as a 20% penalty. After age 65, you may be required to pay ordinary income taxes on HSA funds used for nonmedical expenses. HSA contributions are exempt from federal income tax; however, they are not exempt from state taxes in certain states.