Preparing your own taxes can be very confusing and can leave you questioning if you received the return you deserve. Even using do-it-yourself computer software can raise more questions than it answers.
The tax professionals at McCullough & Associates, LLC will:
- Prepare and review your tax return so that you receive all the deductions and credits for which you qualify.
- Electronically file your return so that you receive a refund sooner.
- Advise you in adjusting your payroll withholdings so that the balance between tax refund and paycheck amounts is best suited for your needs.
- Explain to you potential deductions to limit your tax liability for the next year.
- Represent you in the event that you are audited by federal or state agencies.
Amount of tax to be paid on a traditional IRA account all depends on your age.
Your age at the time you make a taxable withdrawal from your Traditional IRA account can make a big difference in the amount of tax you will pay. Generally, there are three periods within your lifetime where different tax rules apply:
- Under Age 59 ½ - If you withdraw the IRA funds before you reach age 59 ½, you will pay tax and a 10% early withdrawal penalty unless you can avoid the penalty through one of the several exceptions provided in the tax law. Note: Some states also have small early withdrawal penalties.
- Age 59 ½ to Age 70 ½ - During this period you can make withdrawals of any amount without penalty. You are only subject to the income tax.
- Above Age 70 ½ - After reaching age 70 ½, you must begin taking at least the required minimum distributions or face the 50% excess accumulation penalty.