Big thanks to Lange team member Steve Kohman for being a part of our radio show The Lange Money Hour: Where Smart Money Talks on Wednesday night, April 8th on KQV am 1410. Steve is so dedicated to his clients that we had trouble prying him away from the office to do the show.
We’re glad that Steve finally agreed because his tax advice was excellent. He’s a technical machine – answering questions off the top of his head with no notes!
So is it too late to do something about your 2008 tax return? Not according to Jim and Steve. For starters, you can still fund an IRA for 2008. Individuals can contribute up to $5,000 — $6,000 if you’re 50 or older.
Steve also pointed out that many tax deductible medical expenses are overlooked. Double-check to make sure you haven’t forgotten long-term care insurance premiums, prescription expenses, Medicare insurance premiums, prescribed weight-loss programs, therapy and even miscellaneous improvements to your house (adding a wheelchair ramp, for instance).
The tax code can be tricky to navigate. This year, there are several new developments, including The Housing and Economic Recovery Act of 2008. First-time home buyers will have until December 1, 2009 to claim a new refundable tax credit for a qualifying home purchase. There are certain restrictions, so make sure you check with your tax professional.
The Worker, Retiree and Employer Recovery Act of 2008 allows retirees to suspend their Required Minimum Distribution for 2009. Jim and Steve believe this has created an ideal opportunity for seniors to make a Roth IRA conversion.
What should you do if you realize you’ve made a mistake on your return? Simply file an amended return. To make it even easier, you have three years to take care of the paperwork.
If you think you could work night and day on your return and still not get it done by April 15th, you can always file an extension. It’s important to note, though, that it’s an extension to file – not an extension to pay. Uncle Sam still wants you to estimate your taxes and, if you miscalculate, you could be subject to a penalty and interest.
We don’t know what came over Jim and Steve, but they offered listeners who are PA residents a free tax extension! The Lange team is offering to take care of all of the paperwork and will even deliver your return hand-stamped. Then, after April 15th (and some much needed R&R), one of the accountants will meet with you and take a closer look at your return. If you’re interested, call the office at 800-387-1129.
Jim and Steve also covered various strategies for Roth IRA conversions, ideas for 2009 tax planning, what documents your tax professional really wants you to bring to the office and which one of them has already finished his personal tax return and which one hasn’t.
If you missed any part of the show, a rebroadcast is set for Sunday, April 12th from 9-10 a.m. ET and the audio will be available on retiresecure.com early next week.
The next show is set for Wednesday, April 22nd from 7-8 p.m. ET with special guest, author and money manager, Paul Merriman. Paul promises to make his prediction on when the economy will recover and explain the common mistakes that investors make.