Killingsworth Spencer CPAs Archives - Killingsworth Spencer, LLC

How to get credit for your charitable contributions in 2025 if you cannot itemize your deductions –

kwscpa2025-04-17T16:24:33+00:00

Are you 70 ½ or older and have a Traditional, Rollover, or inherited IRA, or other qualified retirement plan? Do you donate to qualified charities, but find that you can no longer receive a tax benefit on your tax return because you must use the standard deduction? Hello, my name is Patti Palmich. I am a Sr. Tax Accountant at Killingsworth Spencer CPAs. If you answered “yes” to these questions, then a Qualified Charitable Distribution (QCD) could help you reduce your taxable income while donating to your favorite charity. QCDs are distributions made from your eligible tax-deferred retirement plan directly to [...]

How to get credit for your charitable contributions in 2025 if you cannot itemize your deductions –kwscpa2025-04-17T16:24:33+00:00

Backdoor Roth IRA

kwscpa2025-04-07T13:40:15+00:00

ROTH IRAs continue to enjoy broad financial appeal to many Americans. ROTH IRAs are after tax investment accounts that grow tax free, are not subject to Required Minimum Distribution (RMD) calculations when you reach age 73, and distributions after age 59 ½ are also tax free as long as the assets being withdrawn have been held for at least 5 years. Greetings, Lynn Spencer here with Killingsworth Spencer CPAs. Clients continue to seek ways to further invest in their retirement plans, but ROTH IRA contributions can be complicated for those taxpayers whose income exceeds the stated limits in the chart below. [...]

Backdoor Roth IRAkwscpa2025-04-07T13:40:15+00:00

Key RMD Update for 2025

kwscpa2025-03-31T15:05:40+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 2025kwscpa2025-03-31T15:05:40+00:00

Federal tax information for 2025

kwscpa2025-02-06T17:56:26+00:00

We have compiled some charts with important federal tax information for 2025 Source: IRS Disclaimer: This post is for general information only and should not be taken as legal or financial advice 2025 Tax Brackets: Tax rate Single Married filing joint Married filing separate Head of Household 10% $0 to $11,600 $0 to $23,200 $0 to $11,600 $0 to $16,550 12% $11,601 to $47,150 $23,201 to $94,300 $11,601 to $47,150 $16,501 to$63,100 22% $47,151 to $100,525 $94,301 to$201,050 $47,151 to$100,525 $63,101 to$100,500 24% $100,526 to $191,950 $201,051 to$383,900 $100,526 to$191,950 $100,501 to$191,950 32% $191,951 to $243,725 $383,901 to$487,450 $191,951 to$243,725 $191,951 [...]

Federal tax information for 2025kwscpa2025-02-06T17:56:26+00:00

Required Minimum Distribution Changes for 2025

kwscpa2025-01-22T20:39:30+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 2025kwscpa2025-01-22T20:39:30+00:00

It’s That Time of Year Again

kwscpa2025-01-22T17:01:34+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 Againkwscpa2025-01-22T17:01:34+00:00

Deducting Rental Property Tax Losses

kwscpa2025-01-21T15:02:03+00:00

Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s why. Understanding Passive Loss Rules The tax code limits passive loss deductions to passive income, with any excess carried forward to future years. You release the carried-forward losses when you · have offsetting passive income from the same or other passive activities, or · completely dispose [...]

Deducting Rental Property Tax Losseskwscpa2025-01-21T15:02:03+00:00

What’s New for GA Residents on State Income Tax

kwscpa2025-01-14T20:14:26+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 Taxkwscpa2025-01-14T20:14:26+00:00

In the market for a new car?

kwscpa2024-12-18T17:01:59+00:00

If you are in the market for a new car, the federal government would like you to purchase an electric vehicle (EV) or plug-in hybrid EV (PHEV). As a result of the Inflation Reduction Act, there are four ways you can benefit from a federal EV tax credit: Purchase an EV and claim the clean vehicle credit. Purchase a used EV that qualifies for the previously owned clean vehicle credit. Purchase an EV for business use and claim the commercial clean vehicle credit. Lease an EV and benefit from a discount from the dealer. Leasing an EV is the most popular [...]

In the market for a new car?kwscpa2024-12-18T17:01:59+00:00

Important Update on FinCEN and BOI

kwscpa2024-12-11T20:21:31+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 BOIkwscpa2024-12-11T20:21:31+00:00