Gifting Money | Part 1 (Inheritance Distribution)

Q:  I want to give my kids some money that I received since my mother passed away.  Someone told me I couldn’t give them over $10,000 or they’d have to pay tax on it.  Is that true? A:  No, you can gift anyone up to $14,000 per year per person without having to file a […]

Return to College | Southern Minnesota

Q:  I’m a returning college student, what can I claim on taxes? A:  For the first four years of college (meaning cumulative in your lifetime), you may qualify for the American Opportunity Credit of up to $2,500 if you spend $4,000 in books and tuition.  Also if your adjusted gross income is less than $90,000 […]

Different Sales Tax Rate for Different Counties | Southern Minnesota

Q:  My business does sales all over the state.  Do I have to collect sales tax for all those locations or can I just use Faribault’s rate because it is only 7.375%? A:  Sorry, but if you are working in different locations, then you have to pay the sales tax for those locations.  The easiest […]

School Shopping & Tax Deductions

Q:  I’m starting the kids’ school shopping now, and I heard I can deduct K-12 school supplies for my kids on my taxes, is that true? A:  Actually, it is.  To qualify, parents must have made the purchases in 2017 and the child must be attending Kindergarten through 12th grade at a public, private or […]

Lowering Health Costs with MNSure / Obamacare | Southern Minnesota

Q:  Is there anything that I can do to help lower our health costs with MNSure/Obamacare? A:  Yes, actually, there is.  If the health plan that you picked is an HSA eligible plan, you are eligible to put money into a Health Savings Account or HSA, and take a front-page tax deduction for it.  Then […]

Inheriting Stock

Q: I inherited some stock from my mom that are paying really good Dividends and Capital Gains each year.  Do we have to pay tax on that? A:  Any dividends or capital gains that are issued to you are taxable.  They will send a 1099 at the end of the year with the information that needs […]

A High School Graduate & A W-4

With recent high school graduates getting ready for the next stage in their lives, I’ve been asked the following question by a few parents: “My child always had a part-time job and we had him claim exempt because he wouldn’t earn more than $6,300.  But he is graduating this year and will be making more money now.  What should he […]

New Deadline for 1099’s | Rice County, Minnesota

Q:  I heard the IRS changed the due dates of the 1099’s.  I thought they were always due on January 31st, so what changed? A:  W-2’s and 1099’s were always due to the recipients by January 31st, but, this year, they are also due to the IRS and SSA.  This means that they have to […]

Just in case you missed it… “New Tax Return Due Dates!” | Rice County, Minnesota

Q:  I heard the IRS changed the due dates of our tax returns this year, is that correct? A:  Actually Congress changed the due dates by the PATH Act (Protect Americans from Tax Hikes) of 2015, but, YES, returns are due earlier.  The new deadline dates for returns are as follows: January 31st due to […]

I’m Still Working. What’s My RMD? | Southern Minnesota

I get this question frequently.  Many of us are looking at working beyond the age of 70 1/2.  What required distributions (RMDs) do you have to take if you continue working? If you are participating in the retirement plan where you work, and–if the plan allows–you do not have to take any RMD from that […]