There are two types of IRAs: traditional IRAs and Roth IRAs. Traditional IRAs defer taxation of investment income, and withdrawals are taxable income except for withdrawals of previously nondeductible contributions. In most cases, however, contributions are deductible. Roth IRAs are subject to many of the same rules as traditional IRAs. Still, there are several differences, the primary one being that contributions aren't deductible and are made after tax, but qualified distributions are generally tax-free. If you're unsure which option is right for you, an accountant in Delaware, OH from our firm can help you navigate these choices and optimize your retirement strategy.

From our experience, if you have income from wages or self-employment income, you can contribute up to $7,000 for 2025 (also $7,000 for 2024). IRAs are available even to children who meet these conditions. Individuals aged 50 and older can contribute an additional $1,000 for a total of $8,000 for 2025 (the same as for 2024). If you have questions about your contributions or need assistance, an accountant in Delaware, OH can help you understand the rules and maximize your retirement savings.

Not everyone can contribute to a Roth IRA. based on our knowledge. The ability to contribute phases out if modified adjusted gross income (MAGI) exceeds certain amounts. For married taxpayers filing jointly, the 2025 phaseout range is $236,000 to $246,000. For single and head-of-household taxpayers, the 2025 phaseout range is $150,000 to $165,000. (For 2024, the phaseout ranges are $230,000 to $240,000 and $146,000 to $161,000, respectively.) You can make a partial contribution if your MAGI falls within the applicable range, but no contribution if it exceeds the top of the range. As with traditional IRA contributions, you must have earnings from personal services equal to or greater than your Roth IRA contribution. According to the IRS, the total contributions you make annually to your traditional IRAs and Roth IRAs can't be more than $7,000, or $8,000 if you're age 50 or older. As such, your maximum Roth IRA contribution is reduced by any traditional IRA contributions you make for the year. If you make the maximum contribution to a traditional IRA, you can't contribute to a Roth IRA.

If you need clarification or help with your IRA contributions, an accountant in Delaware, OH can help you navigate the rules and ensure you're making the most of your retirement savings options.

You may be able to take an immediate Section 179 expense deduction of up to $1,250,000 for 2025 ($1,220,000 in 2024) for equipment purchased for use in your business, instead of writing it off over many years. There's a phaseout limit of $3,130,000 in 2025 ($3,050,000 in 2024). Additionally, self-employed individuals can deduct 100 percent of their health insurance premiums. You may also be able to establish a retirement plan for yourself, such as an individual or self-employment 401(k) plan, a Simplified Employee Pension (SEP) or a SIMPLE IRA, and deduct your contributions. To ensure you're taking full advantage of these deductions and structuring your finances in the best way, consult a certified public accountant in Delaware, OH for expert advice.

You sometimes may benefit from filing separately instead of jointly. Consider filing separately if one spouse has large medical expense deductions or casualty losses and the spouses' incomes are about equal. Separate filing may benefit such couples because each spouse's adjusted gross income (AGI) "floor" for taking the deduction will be computed separately. (If medical expenses not paid via tax-advantaged accounts or reimbursable by insurance exceed 7.5% of your AGI, you can claim an itemized deduction for the amount exceeding that floor.) To determine if this filing strategy is right for you, consult a certified public accountant in Delaware, OH, who can help analyze your specific situation. Our firm is here to help with our straightforward, hassle-free tax services.

If you're planning to make a charitable gift, giving appreciated long-term capital assets generally makes more sense instead of selling the assets and giving the charity the after-tax proceeds. Donating the assets instead of the cash avoids capital gains tax on the sale, and you can obtain a tax deduction for the full fair-market value of the property. To maximize the benefits of your charitable giving, contact DeNoewer Financial Services Inc today and speak with an accountant in Delaware, OH who can help you navigate the best strategies for your tax planning.

Once you're married, you're entitled to file a joint income tax return. While this simplifies the filing process, you may find your tax bill either higher or lower than if each of you had remained single. Where it's higher, it's because when you file jointly more of your income is taxed in the higher tax brackets. This is frequently referred to as the "marriage tax penalty."

Tax law changes in the form of marriage penalty relief were made permanent by the American Taxpayer Relief Act of 2012, and remained in place under the Tax Cuts and Jobs Act of 2017 with the exception of married taxpayers in the highest tax bracket. You cannot avoid the marriage penalty by filing separate returns after you're married. Filing as "married filing separately" can actually increase your taxes. Consult your tax advisor if you have questions about the best filing status for your situation.

Under a joint IRS and U.S. Department of the Treasury ruling issued in 2013, same-sex couples, legally married in jurisdictions that recognize their marriages, are treated as married for federal tax purposes, including income and gift and estate taxes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that doesn't recognize same-sex marriage.

In addition, the ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit. Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country is covered by the ruling. However, the ruling doesn't apply to registered domestic partnerships, civil unions, or similar formal relationships recognized under state law. If you have any further questions, contact our CPA firm in Delaware, OH today.

Generally, no; however, fees paid specifically for income or estate tax advice pursuant to a divorce may be deductible. Also, fees made to determine the amount of alimony or to collect alimony can be deducted. These deductions would be miscellaneous itemized deductions subject to the two percent limitation. For tax years 2018 through 2025, miscellaneous itemized deductions (Form 1040, Schedule A) have been eliminated due to tax reform (Tax Cuts and Jobs Act of 2017). For more information, give our CPA firm in Delaware, OH a call at (740) 235-4351.

Generally, the custodial parent is entitled to the deduction. However, this is often negotiated in the divorce settlement. If the parents agree in writing, the non-custodial parent can take the deduction. For tax years 2018 through 2025, the personal exemption as well as dependent exemptions is eliminated due to tax reform (Tax Cuts and Jobs Act of 2017). However, the dependent exemption deduction for noncustodial parents still exists for 2018-2025 (that is, it wasn't repealed) but is reduced to $0. If you're looking for accounting firms in Delaware, OH to help with your taxes, be sure to reach out to DeNoewer Financial Services.

It depends. The federal government imposes estate taxes at your death only if your property is worth more than a certain amount based on the year of death. By some estimates, more than 99% of estates don't pay any estate tax. In 2023, the exemption limit is $12.92 million ($12.06 million in 2022). Estates worth more than $12.92 million are taxed at 40%. For married couples, the exemption is $25.84 million. There are a couple of important exceptions to the general rule, however. All property left to a spouse is exempt from the tax as long as the spouse is a U.S. citizen, and estate taxes won't be assessed on any property you leave to a tax-exempt charity.

If you have any further questions, don't hesitate to contact our firm today to learn more. Schedule a consultation today to discuss your accounting and tax needs and experience the exceptional service that sets us apart as one of the top accounting firms in Delaware, OH and the surrounding areas.