Harless Tax Blog

Harless Tax Blog

Tax Date Reminder: January 31

Thursday, January 26, 2017

All businesses. Give annual information statements (Forms 1099) to recipients of certain payments you made during 2016. Payments that are covered include: (1) compensation for workers who are not considered employees, (2) dividends and other corporate distributions, (3) interest, (4) rents, (5) royalties, (6) profit-sharing distributions, (7) retirement plan distributions, (8) original issue discounts, (9) prizes and awards, (10) medical and health care payments, (11) debt cancellations (treated as payment to debtor), (12) payments of Indian gaming profits to tribal members, and (13) cash payments over $10,000. There are different forms for different types of payments.  See More

THE SOCIAL SECURITY DEBATE: What Age is the Right Age?

Thursday, February 13, 2014

By Donna Holm, CPA, MST, Associate of Harless & Associates

While rumors circulate that the Social Security System is going bankrupt, consider the source of funding; every U.S. wage earner. While it is true that there are fewer workers for every benefit recipient, (2.8:1 in 2011 vs. 5:1 in 1960), and the average American will collect much longer than once envisioned, bankruptcy would be impossible as long as workers continue to contribute. Keep in mind that the maximum wage base has steadily increased; it’s $117,000 in 2014.

Since 2011, some 11,000 Americans turn 65 every day. Social Security means you worked for it, you’re entitled to it, and you deserve it. Full retirement age (FRA) depends on the year you were born because it has changed several times since Social Security began. What age is the right age to begin taking benefits? It depends. As you approach retirement age, this becomes one of the most important decisions to make, and advice should be sought

As a result of taking benefits too early and/or not coordinating benefits with a spouse, 73 percent of Americans receive a reduced benefit. With life expectancies increasing, it is important to realize just how far your retirement funds need to stretch. Those individuals taking benefits between ages 62 and 65 offer various reasons, including family histories that don’t favor longevity, or simply a decision to take what is owed to them.  See More