Key RMD Update for 2025

2025-03-31T15:05:40+00:00

If you have inherited (or may someday inherit) an individual retirement account (IRA), the 2025 changes may significantly impact your tax planning. Key Updates RMD requirements. Starting in 2025, annual required minimum distributions (RMDs) are mandatory for most inherited IRAs. Failure to comply may result in penalties of up to 25 percent, reducible to 10 percent if corrected promptly. 10-year rule enforcement. Non-spousal beneficiaries must fully deplete inherited IRAs within 10 years of the original owner’s death, with annual RMDs generally required. Spouses and Special Cases Surviving spouses can assume ownership of the IRA or withdraw from it as a beneficiary. [...]

Key RMD Update for 20252025-03-31T15:05:40+00:00

Required Minimum Distribution Changes for 2025

2025-01-22T20:39:30+00:00

Hello everyone, The IRS has published some new rules if you  turned 73 in 2024. Below is an excerpt from a recent IRS publication. You may click on the hyperlink at the bottom of the page to read the full transcript. Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach age 73. Participants in a workplace retirement plan (for example, 401(k) or profit-sharing plan) can delay taking their RMDs until the year [...]

Required Minimum Distribution Changes for 20252025-01-22T20:39:30+00:00

It’s That Time of Year Again

2025-01-22T17:01:34+00:00

The ring of the New Year’s Eve celebrations is now a memory, and Killingsworth Spencer CPAs is gearing up for another busy tax season. Lynn Spencer here; the 2025 tax season boasts several changes due to the devastation of Hurricane Helene last fall. The IRS granted residents in Georgia and surrounding states extra time, until May 1, 2025, for: Extended individual 2023 tax returns 2024 tax returns (1040, 1065, 1120S) estimated tax payments for the first quarter of 2025 Not extended (due January 31, 2025): IRS Forms 1099s/1096 is due for each person who was paid $600 or more W2s/W3 and 4Q [...]

It’s That Time of Year Again2025-01-22T17:01:34+00:00

What’s New for GA Residents on State Income Tax

2025-01-14T20:14:26+00:00

WHAT’S NEW Source: GA DOR – 2024 GA Individual Income Tax – page 9 2024 Income Tax Changes: Effective January 1, 2024, the income tax rate is 5.39%. Additionally, personal exemptions have been repealed except for the $4,000 dependent exemption. Finally, Georgia standard deductions have increased to $24,000 for Married filing jointly returns and $12,000 for Single, Head of household, and Married filing separately returns. The Department encourages taxpayers to review their estimated tax payments and wage withholdings for 2024. Georgia Resident Itemizer Tax Credit: Full-year and part-year residents who itemize their deductions shall be entitled to a credit up to [...]

What’s New for GA Residents on State Income Tax2025-01-14T20:14:26+00:00

Important Update on FinCEN and BOI

2024-12-11T20:21:31+00:00

Business entities that were formed or first registered prior to 2024 were required to file their initial Beneficial Ownership Interests (BOI) reports by January 1st, 2025. As of December 3rd, 2024, a preliminary injunction against enforcement of this requirement of the Corporate Transparency Act (CTA) was filed by Federal Judge Amos Mazzant for the Eastern District of Texas. Hello, everyone. I'm Gus Martinez, a CPA and senior tax Manager at Killingsworth Spencer CPAs. According to Matthew Erskine, JD, a trusts and estate attorney, “it would be reasonable for reporting companies to pause submitting new filings to the FinCEN database.” If you [...]

Important Update on FinCEN and BOI2024-12-11T20:21:31+00:00

Important Tax Deadline December 16th

2024-12-10T22:59:31+00:00

Greetings, Lynn Spencer here, CEO of Killingsworth Spencer CPAs. Monday, December 16th is the deadline to pay Georgia P-T-E 4th quarter estimates. To calculate the amount of tax owed, guestimate your net income for 2024 and multiply that result by 5.49%; then subtract the amount of GA PTE taxes you may have paid in the previous three quarters of 2024. We recommend that you pay PTE taxes online at gtc.dor.ga.gov. PTE is considered an estimated Corporate Income Tax. The tax period is Dec. 31st, 2024. For a more detailed explanation of PTE, see our March 2024 Blogpost here.   Clients of Killingsworth [...]

Important Tax Deadline December 16th2024-12-10T22:59:31+00:00

Don’t forget about Gifting as a planing tool

2024-11-08T17:17:23+00:00

Tis the season for giving, including end of year gifts to family, charity, and friends. In fact, your mailbox may be getting full from charities requesting funding. Hello again, Judy Bernhard, CPA, and Resident Tax Manager at Killingsworth Spencer CPAs. The first question to ask yourself is what is the purpose of the gift and how much do you want to give away? If your intent is to unload some cash to family or friends, the Annual Exclusion (AE) Gift is $18,000 per person in 2024 and is unlimited as to the number of gifts per Donor. No gift tax return [...]

Don’t forget about Gifting as a planing tool2024-11-08T17:17:23+00:00

The Future Tax

2024-10-22T19:30:05+00:00

January 1, 2026, is an important date to remember. On that day the tax saving mechanisms from TCJA in 2017 revert to pre-2018 levels, including the federal estate tax lifetime exemption, unless Congress takes action. Currently, the lifetime exemption for federal estate tax is $13.61 million per person. The new lifetime exemption amount is projected to be reduced to $7M beginning on January 1, 2026. Granted, this is not something most Americans will need to concern themselves with, but if you a own a business, significant investable assets, or valuable real estate….. Hello again, Judy Bernhard, CPA and Resident Tax Manager [...]

The Future Tax2024-10-22T19:30:05+00:00

Disaster Relief – Hurricanes Helene & Milton

2024-10-14T20:17:05+00:00

Many taxpayers have properties in the areas affected by hurricanes Helene and Milton. Flooding was the most common cause of damage, and most homes and businesses were not covered by flood insurance. Greetings, Lynn Spencer here from Killingsworth Spencer CPAs. Residents in several states are included in the federally declared disaster area. See list (IRS.gov). While extending deadlines for most returns can be helpful, there is also tax relief. Disaster Losses – individuals and businesses in the disaster area who suffered uninsured or unreimbursed disaster-related losses from the October 2024 hurricanes may choose to claim them either on their 2023 or [...]

Disaster Relief – Hurricanes Helene & Milton2024-10-14T20:17:05+00:00

Cybersecurity Tips to keep Your Personal and Financial Information Safe

2024-09-11T22:44:17+00:00

Cybersecurity Tips to Keep Your Personal and Financial Information Safe These days, protecting your personal and financial information is more difficult than ever. Greetings, Lynn Spencer here with Killingsworth Spencer CPAs. I want to introduce you to our managed IT provider, Luis Cotto, president of Tech Support of Georgia. We discussed our chances of Cyber-crimes. Below is what we feel are the best ways to protect ourselves right now. 1. Get an IRS IP PIN One easy way to protect yourself from tax-related identity theft is by getting an IRS Identity Protection PIN or IP PIN for short. It’s a six-digit [...]

Cybersecurity Tips to keep Your Personal and Financial Information Safe2024-09-11T22:44:17+00:00
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