Kevin Brunelle, Author at Milliken, Perkins & Brunelle

Two important tax deadlines are coming up — and they don’t involve filing your 2022 tax return

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March 21, 2023 Kevin Brunelle estimated tax, RMD, self employment tax

RMD Distribution

April 18 is the deadline for filing your 2022 tax return. But a couple of other tax deadlines are coming up in April and they’re important for certain taxpayers:

Saturday, April 1 is the last day to begin receiving required minimum distributions (RMDs) from IRAs, 401(k)s and similar workplace plans for taxpayers who turned 72 during 2022.
Tuesday, April 18 is the deadline for making the first quarterly estimated tax payment for 2023, if you’re required to make one.

The 2022 gift tax return deadline is coming up soon

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March 14, 2023 Kevin Brunelle gift tax

2022 Gift Tax

Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2022 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway.

Claiming losses on depreciated or worthless stock

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March 8, 2023 Kevin Brunelle capital loss

stock losses

Have you bought stock in a company that later dropped in value? While you may prefer to forget such an ill-fated investment, at least you can claim a capital loss deduction on your tax return. Here are the rules that apply when a stock you own is sold at a loss or becomes completely worthless.

Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances

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February 28, 2023 Kevin Brunelle

lawsuit settlement

You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and in a lump sum or in installments.

There still may be time to make an IRA contribution for last year

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February 21, 2023 Kevin Brunelle IRA Contribution, Roth IRA, SEP, Traditional IRA

IRA contribution 2022

If you’re getting ready to file your 2022 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until this year’s April 18 filing deadline and benefit from the tax savings on your 2022 return.

Child Tax Credit: The rules keep changing but it’s still valuable

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February 14, 2023 Kevin Brunelle Child Tax Credit, W-4

child tax credit

If you’re a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for eligible parents. Even though the enhancements that were available for 2021 have expired, the CTC is still valuable for parents. Here are the current rules.
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Answers to your questions about 2023 limits on individual taxes

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February 8, 2023 Kevin Brunelle 2023 taxes, 401k, IRA

2023 taxes

Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension).

However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2023. Due to inflation, many amounts have been raised more than in past years. Below are some Q&As about tax limits for this year.
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Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

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January 31, 2023 Kevin Brunelle 401k, retirement plan withdrawal, simple IRA, Traditional IRA

retirement plan withdrawal

Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject to a 10% penalty tax.

Why you might want to file early and answers to other tax season questions

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January 24, 2023 Kevin Brunelle tax filing, tax filing deadline, tax filing extension

tax filing early

The IRS announced it opened the 2023 individual income tax return filing season on January 23. That’s when the agency began accepting and processing 2022 tax year returns. Even if you typically don’t file until much closer to the mid-April deadline (or you file for an extension), consider filing earlier this year. The reason is you can potentially protect yourself from tax identity theft.

Tax-saving ways to help pay for college — once your child starts attending

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January 17, 2023 Kevin Brunelle American Opportunity Tax Credit (AOTC), Form 1098-T, gift tax, IRA

college tax breaks

If you have a child or grandchild in college — congratulations! To help pay for the expenses, many parents and grandparents saved for years in tax-favored accounts, such as 529 plans. But there are also a number of tax breaks that you may be able to claim once your child begins attending college or post-secondary school.