If you need to confirm your IRA contributions already made for 2018 or are considering moving money from a non-IRA account to an IRA for your 2018 contribution, remember to allow time for processing to meet the April 15 deadline.
QCD – Qualified Charitable Distribution
If you are over age 70 ½ and gave money from your IRA directly to charity, please share those distribution details with your tax professional. The 1099-R generated for your IRA shows total distributions and does not include details on distributions to a qualified charitable organization. This will be important information to share as distributions to charity, up to $100,000 are not taxable.
Social Security Tax
Those who worked for multiple employers in 2018 may have paid too much in Social Security tax. The maximum amount withheld by employers was $7,960.80. If your Social Security withholdings exceeded that maximum, you may be able to claim the excess as a credit.
Long-Term Care Insurance
If you own long-term care insurance, you may be eligible for an income tax credit for premiums paid during the 2018 tax year. Specifics vary from state to state, and you should consult your tax professional for additional information.
Minnesota Resident 529 Plan Contributions
As a Minnesota resident, you may be eligible for a Minnesota nonrefundable income tax credit or an income tax deduction for contributions to any state’s 529 plan. The nonrefundable income tax credit is subject to phase-out. You should consult your tax professional for additional information regarding the credit or deduction.
The Affordable Care Act requires that a taxpayer and each member of his or her family has qualifying health coverage for each month of the year, qualifies for an exemption, or makes an individual shared responsibility payment when filing his or her tax returns. Similar to last year, those who had qualifying health coverage for the whole year will simply have to check a box stating that they are covered.
Important Employer-Provided Benefit Reminders
As you gather documents for your 2018 tax return, this is a good time to complete a thorough review of your employer-provided benefits. Look for opportunities to increase your 401(k) contributions to maximize your savings for the new tax year, confirm the beneficiaries listed on your employer-provided benefits are still accurate, and determine if any adjustments should be made to your tax withholding. This can be a good question to ask your tax professional as they review your information to prepare your 2018 tax return.
Important Retirement Contribution Numbers
Additional “Catch-Up” limits (Individuals age 50 and over)
If you have any questions, please contact your JNBA team.
Disclaimer: JNBA is not an accountant and no portion of the above should be construed as accounting advice. All accounting issues should be addressed with an accounting professional of your choosing. JNBA is not an agent of the Social Security Administration. All claiming strategies and benefits must be verified and accepted by the Social Security Administration. JNBA is not an insurance agent and no portion of the above should be construed as insurance advice. All insurance issues should be addressed with the insurance professional of your choosing.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, Inc.
Please see important disclosures information at www.jnba.com/disclosure