2022 EP0226 Planning Matters Radio - Tax Planning

Plan planning matters. You welcome once again supplanting matters radio show where we evaluate all the financial or personal finance issues of the day hopefully put a smile on your face at the same time today were to be talking about tax season is that most wonderful time of the year. Have I paid enough, will I get a refund have all my forms arrived.

How can I keep more of my own money and the person is going to answer those questions for us today is a Dave Ramsey smart Mr. Pro services clients throughout the great state of North Carolina, Peter Sean help us out. Now you have the questions man, your people are worried about taxes this time of year. That's the number one financial concern that I hear on people's minds. It's funny that it is seasonal and I get it because that's when the bill is due the returns are completed and filed. We gotta make the payment, but taxes really should be a pro active process. I mean, it's not even like we only have one or two different types that there there literally pages and pages of different types of taxes that we pay along the way and we should be thinking about all of these proactively, what are we paying, how can we control what we pay.

How can we keep more of our money because I believe most people feel like I do that I I'd I tend to know better what I can do with my money than the government does, or put to better use. And I know that there are certain things that we all need to pay for road schools, bridges, infrastructure defense military but it just seems like once the money goes up to Washington.

They find a million ways to waste it and I want to pay only the legal, moral, ethical, minimum amount that I have to write answer to that end, you can ask Eurotech question to Peter Sean. His phone number is 919-300-5886. You can also visit his website www.rochonplanning.com that's rich on planning.com. Start with the basics. What forms do I need to do my taxes and the best way let's talk about literal wood pulp on my desk well. Is there a scenario that involves money, yes, than the IRS has a form for it like anything that you can think of. There is a specific tax form involved with that from in wages to investments to withdrawals from retirement accounts to the sale of a home to gambling winnings to long-term care if you if you are funding that yourself.

I mean there are literally I've got a list here of 13 pages that just list the form and then a brief description of the different tax forms sticking with the few that we use most commonly everybody. Most folks are our very used to seeing the W-2 that is the one that says you have been paid wages and oh by the way the IRS is already taken a bite out of those wages. By the time you even saw them. Here's how much you were paid.

Here's how much we arty collected along the way before you sought 1099s are also very common and and again there are a number of different types of 1099s forms, but the ones that we see most often are 1099s INT that's interest and 1099s are retirement accounts. The 1099 are specifically we we deal with a lot because that means any money that came out of any retirement account will issue a 1099 are now does that mean that it's an actual taxable event. Maybe, maybe not. If you received the money and kept it in a nonqualified location or you spent the money.

In other words, you didn't get it back into a retirement account, then yes, a 1090 9R can indicate a taxable liability but it does not necessarily mean that because any time any money comes out of a retirement account that 1090 9R must be issued. There's another form that people aren't quite as familiar with its A 5498 form and the 5498 form gives a retirement account balance at the end of the year.

It is used to help the IRS know what your RMD from a retirement account should be. It also helps them know when money was received or rolled over or transferred