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Category: Taxes

IRS’s ‘Free File’ Available Until October 15*

IRS’s ‘Free File’ Available Until October 15*

October 15 is the filing deadline for taxpayers who requested extensions on their 2017 tax returns.

The IRS provides several resources to help taxpayers file their forms:

Resources:

Taxpayers who made $66,000 or less can go to https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free for information on filing for free. Those who made more may use the IRS’s Free File Fillable Forms, which are the agency’s electronic versions of the paper forms.

Taxpayers can go to https://www.irs.gov/help/ita to get many of their tax questions answered.

The agency provides a search directory of tax preparers at https://irs.treasury.gov/rpo/rpo.jsf.

The IRS urges taxpayers to retain copies of returns and other supporting documents for at least three years.

Other details may apply, and you can find more information on the IRS website.

*This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

Tip adapted from IRS.gov[I]

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.irs.gov/newsroom/irs-free-file-and-other-resources-are-available-until-october-15

Valuable Credits Available for Certain Small Businesses*

Valuable Credits Available for Certain Small Businesses*

The IRS is reminding small business owners who provide health insurance coverage to employees about the Small Business Health Care Tax Credit.[i]

The agency provides tax relief for some small businesses who want to claim the Small Business Health Care Tax Credit but have faced difficulty finding coverage in the Small Business Health Options Marketplace. Notice 2018-27[ii] provides small businesses with guidance in calculating the tax credit.

Small businesses qualify for the credit by providing their employees with qualified health plans from the Small Business Health Options Program[iii] (SHOP). The credit may only be used for two consecutive tax years.

The credit is available to businesses that first claimed the credit offered through the marketplace but were unable to find SHOP Marketplace coverage in their area.

The IRS states: “Under the relief, the employer can claim the credit for health insurance coverage provided outside of a SHOP Marketplace for the remainder of the credit period if that coverage would have qualified under the rules that applied before January 1, 2014.”

Other details may apply, and you can find more information on the IRS website.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

Tip adapted from the IRS.gov[iv]

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.irs.gov/affordable-care-act/employers/small-business-health-care-tax-credit-and-the-shop-marketplace

[ii] https://www.irs.gov/pub/irs-drop/n-18-27.pdf

[iii] https://www.healthcare.gov/small-businesses/provide-shop-coverage/shop-marketplace-overview/

[iv] https://www.irs.gov/newsroom/irs-issues-guidance-for-small-businesses-about-valuable-credit

Tips for Managing Your Annuity Income

Tips for Managing Your Annuity Income

Many retirement planners find that utilizing annuities may be a good way to generate guaranteed income. Annuities allow you to set retirement distributions based on their type and how much you contributed.

Like all investment and insurance products, annuities are subject to fees and expenses. Generally, you will have to pay fees on distributions. Using fixed index annuities as an example, here are two fees to consider:

  • Surrender charge: If you collect income before the designated distribution date, you’ll have to pay a surrender fee. While charges may vary by provider and type of annuity, you should expect to pay around 10% of your total contract price for the first year. Surrender fees may drop by around 1% each year.[i]
  • Administrative fees: Annuity managers typically charge fees to cover the administrative costs of managing your accounts. Fees will vary by firm.[ii]Purchasing certain annuities allows you to defer paying taxes on your investments. This applies to annuities that are held in traditional IRAs, 401(k)s or other qualified retirement accounts. However, once you start receiving annuity income from a tax-deferred source, you should be mindful of the following:[iii]

Remember to Prepare for Taxes

  • Ordinary income tax: You will have to pay ordinary income taxes when you collect annuity income. Taxes may vary depending on if you receive a lump sum or ongoing payments.[iv]
  • Early-withdrawal tax: You may incur a 10% tax penalty if you withdraw money early, prior to age 59½, from your annuity fund.[v]

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. This material has been prepared for planning purposes only and is not intended as specific tax or legal advice. Tax and legal laws are often complex and frequently change. Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

You may also have to address other tax issues, so researching tax rules or consulting with a tax professional is important. Taxes and fees depend on the type of annuity you bought and how much you contributed to it. If you would like to discuss your options and potential financial and tax obligations, we’re here to help.

[i] http://www.investopedia.com/terms/s/surrenderfee.asp?lgl=myfinance-layout

[ii] https://www.fidelity.com/viewpoints/retirement/shoppers-guide-to-annuity-fees

[iii] https://www.annuity.org/annuities/taxation/

[iv] http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-distributions-charges.asp

[v] https://www.irs.gov/newsroom/early-withdrawals-from-retirement-plans

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