We specialize in bookkeeping, payroll, income tax return preparation, and retirement planning, and serve a nationwide clientele consisting of individuals and businesses of all types and sizes (LLC, partnerships, C & S Corporations), as well as trusts and estates. As financial problem solvers, we provide practical advice and proactive solutions with personalized service. We are affordable, experienced, and friendly, and we tirelessly study and research the ever-changing world of tax law and regulation so that we can help every client realize the greatest possible savings and return on investments. Our office is conveniently located in Dover, Delaware. Please contact us today to find out more about how we can make YOUR life less taxing!Tax
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๐๐ฎ๐ป ๐ฑ๐ฒ๐น๐ฎ๐๐ถ๐ป๐ด ๐บ๐ ๐ณ๐ถ๐ฟ๐๐ ๐ฅ๐ฒ๐พ๐๐ถ๐ฟ๐ฒ๐ฑ ๐ ๐ถ๐ป๐ถ๐บ๐๐บ ๐๐ถ๐๐๐ฟ๐ถ๐ฏ๐๐๐ถ๐ผ๐ป ๐๐ฎ๐๐ฒ ๐บ๐ฒ ๐บ๐ผ๐ป๐ฒ๐ ๐ผ๐ป ๐๐ฎ๐
๐ฒ๐?
It can lower your taxable income for one year, but delaying that first RMD can leave you taking two required distributions the following year.
When you reach RMD age, you get a one-time option to delay your first distribution until April 1 of the following year.
But your second RMD still has to be taken by December 31 of that same year.
That means you could have two RMDs reported on one tax return.
That extra income could push some of your income into a higher tax bracket. It could also increase your income enough to trigger higher Medicare Part B and Part D premiums two years later.
Before choosing the April 1 delay, take time to estimate your income both ways: ๐ต๐ข๐ฌ๐ช๐ฏ๐จ ๐บ๐ฐ๐ถ๐ณ ๐ง๐ช๐ณ๐ด๐ต ๐๐๐ ๐ฃ๐บ ๐๐ฆ๐ค๐ฆ๐ฎ๐ฃ๐ฆ๐ณ 31 ๐ฐ๐ณ ๐ต๐ข๐ฌ๐ช๐ฏ๐จ ๐ต๐ธ๐ฐ ๐๐๐๐ด ๐ต๐ฉ๐ฆ ๐ง๐ฐ๐ญ๐ญ๐ฐ๐ธ๐ช๐ฏ๐จ ๐บ๐ฆ๐ข๐ณ.
If you want help running those numbers before you make the decision, donโt hesitate to contact us. We can look at both years and see how each option affects your tax bracket and Medicare income thresholds.
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๐ช๐ต๐ ๐ฑ๐ผ๐ฒ๐ ๐บ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐น๐ผ๐ผ๐ธ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐ฎ๐ฏ๐น๐ฒ ๐๐ต๐ฒ๐ป ๐บ๐ ๐ฏ๐ฎ๐ป๐ธ ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐ ๐๐ฎ๐๐ ๐ผ๐๐ต๐ฒ๐ฟ๐๐ถ๐๐ฒ?
Your business can show a profit on paper even when you haven't actually collected all of that money from your customers.
If you use accrual-basis accounting, revenue gets recorded when you issue an invoice, not when the customer actually pays you.
That means your Profit & Loss statement can include revenue you haven't collected yet.
So you might see a healthy profit number while a chunk of that money is still sitting in Accounts Receivable.
This is why your P&L and bank balance tell you different things about your business.
Your P&L shows financial performance based on your accounting method. Your bank account shows the cash you actually have available.
If there's a big gap between the two, pull your Accounts Receivable aging report and look at how much of your revenue is tied up in unpaid invoices, especially those that are 90+ days past due.
๐๐ฉ๐ฆ๐ฏ ๐ธ๐ข๐ด ๐ต๐ฉ๐ฆ ๐ญ๐ข๐ด๐ต ๐ต๐ช๐ฎ๐ฆ ๐บ๐ฐ๐ถ ๐ค๐ฉ๐ฆ๐ค๐ฌ๐ฆ๐ฅ ๐ฉ๐ฐ๐ธ ๐ฎ๐ถ๐ค๐ฉ ๐ณ๐ฆ๐ท๐ฆ๐ฏ๐ถ๐ฆ ๐ช๐ด ๐ต๐ช๐ฆ๐ฅ ๐ถ๐ฑ ๐ช๐ฏ ๐ถ๐ฏ๐ฑ๐ข๐ช๐ฅ ๐ช๐ฏ๐ท๐ฐ๐ช๐ค๐ฆ๐ด?
DM us if you want clearer visibility into your true cash position.
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First State CPAs & Associates |
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|
18 S. State St, Dover, DE 19901 |
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| (302) 736-6657 | |
| Business Hours | |
| January 1st January 31st | |
| MondayโFriday: | 8amโ5pm |
| Saturday & Sunday: | closed |
| February 1st April 15th | |
| MondayโThursday: | 8amโ6pm |
| Friday: | 8amโ5pm |
| Saturday: | By appointment |
| Sunday: | closed |
| April 16th December 31st | |
| MondayโThursday: | 8amโ5pm |
| Friday, Saturday & Sunday: | closed |