Category Archives: Taxes
Brian Krebs is reporting that starting in January of 2021, all citizens can get a pin number for use when filing their federal taxes. He also suggests that people now setup an account with the IRS. It took me ten minutes to setup an account, but then they send you a letter which you use to activate the account.
The only question I have is, “Does my wife need her own pin or can my pin work for both of us since we file jointly?
The answer I got from an accountant friend was, “In the past, the IRS issued an IPPIN to the person who had been compromised. If both spouses were compromised, each received an IPPIN.”
Here is a tip from my favorite CPA, Brent, on a way to save taxes and still donate to your charity.
If you are 70 1/2 and have to take a Required Minimum Distribution, RMD, one way to give to your favorite church/charity is via this RMD.
Have the firm/trustee liquidate a specified dollar amount from your IRA and have them mail/wire the amount directly to the charity.
You will pay no taxes on those withdrawals and still benefit from your standard deduction.
Any amount processed as a QCD, Qualified Charitable Deduction, counts toward your RMD and reduces the amount of your IRA distribution.
You can only make the tax free transfer from an IRA, not a 401(k) or a 403 (b).