by Deborah Ritz

Filing Deadlines:

In order to meet the filing deadline for tax year 2015, income tax returns or extensions must be properly transmitted and acknowledged or addressed, mailed and postmarked by Monday, April 18, 2016.

The later filing date is due to the Washington D.C.

Emancipation Day holiday being observed on April 15 instead of April 16, 2016, Tax Day is on the following Monday.   Continue reading →

by Deborah Ritz

I have received my first MRD. Which line of the 1040 do I use to report this income?

Minimum required distributions, or MRDs, are mandatory, minimum yearly withdrawals that generally must be taken starting in the year you turn 70-and-a-half.

While there is a minimum amount you are required to withdraw in order to avoid severe penalties, you can always take more than the MRD amount.  Continue reading →

by Deborah Ritz

I’ve was enrolled in college in 2015. Are there tax benefits available for college expenses? 

If you and your education expenses qualify you have a choice of one of the following:

1. Lifetime Learning Credit is a non-refundable tax credit. You may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students.  Continue reading →

by Deborah Ritz

I share joint and physical custody of my child with my ex-wife. We have a custody agreement from family court which allows me to claim my child as a dependent every other year. The time our child spends in each of our homes is equal and we both provide one-half of our child’s support. What happens if we both file Head of Household and use the child as a dependent in the same year?

First, if you both file electronically, the one that files first will be accepted and the second filed return will be rejected because the dependent’s social security number will have already been used.  Continue reading →

by Deborah Ritz

I’ve received a notice from the IRS that I owe more taxes from a previous year. I don’t think I do, what are my options?

The notice you received is a proposed change for a prior year.

These notices can be for any of the last three years but in most cases the notice is for the previous year.  Continue reading →

by Deborah Ritz

I haven’t gotten my W-2 yet. Isn’t my employer required to give my W-2 to me before the end of January?

According to the Internal Revenue Service (IRS), businesses must send their employees’ W-2’s by February 1, 2016.

The normal date of January 31 was extended this year because that due date fell on a weekend.

In the event that an employee does not receive a W-2 from their employer on time or at all, they can contact the IRS for assistance.  Continue reading →

I am under the age of 59-and-a-half and have been ordered by a divorce court to take money out of my traditional IRA to pay my former spouse. Is there any way I can avoid the 10% early withdrawal penalty?

The only divorce-related exception for IRAs is if you transfer your interest in the IRA to  your former spouse, and the transfer is under a divorce or separation instrument (see IRC section 408(d)(6). The rules for this transfer either:

1. Changing the name on the IRA from your name to that of your former spouse (if transferring your entire interest in that IRA), or

2. A trustee to trustee transfer from your IRA to one established by your former spouse. In this case a rollover from your IRA to your former’s spouses IRA does not qualify. Continue reading →