Category Archives: Taxes

Ask the Experts: My taxes are huge on a 457 plan withdrawal

When it comes to retirement plans, 401(k)s and 457s are common types of accounts, but questions can arise. This week, CPA Gregory Burke of Sacramento and certified financial planner Kimberly Foss of Roseville offer some guidance.

I took a 457 withdrawal of $50,000. The IRS wants me to pay $20,000 in penalties, which is almost half of what I took out. How do I put in a stress claim?

A 457 plan is a deferred compensation retirement plan usually sponsored by government entities, such as a federal or state agency.

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From : Psst. Tax deadline not much of a deadline for most

Here’s a little secret for all you procrastinators on Tax Day: The Internal Revenue Service doesn’t like to talk about it, but as long as you don’t owe any additional taxes, there is no penalty for filing a few days late.

The late filing penalty is usually 5 percent of the unpaid taxes for each month – or part of a month – a return is late. That can add up quickly if you owe additional taxes. But what if the unpaid taxes are zero? Five percent of zero is … zero!

However, if you wait more than three years to file, you forfeit your refund. So maybe it’s better to file by Monday, after all. Besides, if you’re getting a refund, why wait?

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What Happens When Someone Else Gets Your Tax Refund

Tax (Photo credit: 401(K) 2013)

If you usually wait until April to file your taxes, you might want to hurry up — before identity thieves beat you to it. Using stolen names and Social Security numbers, these criminals file fake tax returns with false wage and withholding information. This generates big — and fraudulent — refunds, before the real taxpayer gets around to filing.

The Internal Revenue Service says it’s busy working to combat what prosecutors call a fraud epidemic.Most taxpayers don’t have any idea something is wrong until they hit the send button on their taxes and get an error message.

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Battle builds over calculating pensions

English: Photo of California Attorney General ...

Debate is brewing across the state over which types of pay can be counted toward a public worker’s pension — fallout from landmark changes that went into effect this year.

The overhaul, signed into law by Gov. Jerry Brown, was intended to slash swelling pension costs by raising the retirement age for new workers and increasing employee pension contributions.

The sweeping revision, known as the California Public Employees’ Pension Reform Act of 2013, also limits what’s considered pensionable compensation. This is crucial because it’s aimed to curb pension spiking and other issues that have caused governments to bleed money.

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In Kansas, A ‘Glide Path’ To No Income Taxes. Will It Work?


Kansas Gov. Sam Brownback has put the state on what he calls a “glide path to zero” income tax. But that glide path is far from being clear or smooth.

On the face of it, Brownback seems to enjoy a remarkably strong political position. He’s a conservative Republican, flanked by GOP supermajorities in both legislative chambers. His allies helped purge moderate Republicans from the state Senate in last year’s election.

“I think the road is open,” Brownback says. “I think we do provide an alternative model. I think we do provide a red-state model.”

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City pension costs per family approach $600 per year


Some communities in San Diego County are on the hook for almost $600 per year per household to cover city employee pension costs, according to a study by a taxpayers group.

Del Mar citizens carry the biggest load, at $573 annually of public employee pension costs per household.

Coronado ranked second, at $565 per household. National City was third, at $419 per household.

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Personal Finance: IRS says low-income workers could get up to $5,800 tax refund

Low-income workers got a friendly reminder from the IRS today: You could be eligible for up to $5,800 in refundable tax credits.

Known as the “Earned Income Tax Credit,” it’s intended to help low-to-moderate-income workers who earned up to $50,270 in 2012.

But as many as one in five eligible taxpayers never sign up. “This year, millions of workers could qualify for EITC for the first time, and the IRS urges them not to overlook this valuable credit,” said acting IRS commissioner Steven T. Miller, in a statement.

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