Building for the Future
What do I need to bring when I am having my taxes
prepared?
Following is a list of the more common items you should bring
if you have them. ? Wage statements (Form W-2) ? Pension, or
retirement income (Forms 1099-R) ? Dependents' Social
Security numbers and dates of birth ? Last year's tax
return ? Information on the sales of stocks and/or bonds ?
Social Security and/or unemployment income ? Income and
expenses from rentals ? Record of purchase or sale of real
estate
Please feel free to download and print our tax
organizer from our home page. The organizer will
further assist you in gathering all of your tax
information.
Is my social security taxable?
Usually if your income including social security benefits is
less than $25,000 if single or $32,000 if married, your
benefits are not taxable. If your income is higher than those
limits, there are formulas to determine what percentage of
your social security is taxable. Currently up to 85% of your
social security may be taxable.
When can I make contributions to my IRA?
Generally for any tax year, you can make a contribution to
your IRA up until the original due date of the return
(usually April 15). Thus for tax year 2008, you can make
contributions from January 1, 2008 through April 15,
2009.
What are the differences between a Roth and a
conventional IRA?
A traditional IRA lets you deduct contributions in the year
you make them, and the distributions are included as
income on your return when you withdraw from the IRA after
reaching age 59½. A Roth IRA does not let you deduct
the contributions, but you also do not report the
distributions as income, no matter how much the Roth account
has appreciated. With a Roth, you can exclude the income
earned in the account from being taxed.
What are the consequences of early withdrawals from
my retirement plans?
there is a 10% penalty on the taxable amount. The main
exceptions that let you withdraw money early without penalty
are as follows: • Qualified retirement plan
distributions if you separated from service in or after the
year you reach age 55 (does not apply to IRAs). •
Distributions made as a part of a series of substantially
equal periodic payments (made at least annually) for your
life or the joint lives of you and your designated
beneficiary. • Distributions due to total and permanent
disability. • Distributions due to death (does not apply
to modified endowment contracts) • Qualified retirement
plan distributions up to (1) the amount you paid for
unreimbursed medical expenses during the year minus (2) 7.5%
of your adjusted gross income for the year. • IRA
distributions made to unemployed individuals for health
insurance premiums. • IRA distributions made for higher
education expenses. • IRA distributions made for the
purchase of a first home (up to $10,000). •
Distributions due to an IRS levy on the qualified retirement
plan. • Qualified distributions to reservists while
serving on active duty for at least 180 days.
How do I find out about my refund?
The best way is to use the Check Your Refund link from the
Resources pages of our website! To look up the status of your
federal or state refund, you will need your social security
number, filing status, and exact amount you’re
expecting back. Alternatively, you can go directly to the IRS
website:
http://www.irs.gov/individuals/article/0,,id=96596,00.html
How long do I keep my records and tax
returns?
You should keep your records and tax returns for at least 3
years from the date the return was filed or the date the
return was required to be filed, whichever is later. It is
recommended that you keep these records longer if
possible.