If you're wondering how an annuity is taxed, then here are the basics. Look no further because you will overthink it. In a nutshell, a distribution from a qualified annuity will be taxed at your current income tax rates. If you are 59 1/2 years of age then the early withdrawal penalty does not apply. Otherwise, you will pay a 10% early distribution penalty. You will pay tax only on earnings from a nonqualified annuity. Let me explain.
Vilensky & Company, LLC
Accounting Firm in Lewiston & Kamiah, ID
Individual/ Small Business Tax, Accounting, Bookkeeping, & Payroll Services
We believe in the value of relationships. We view every client relationship like a partnership and truly believe that our success is a result of your success. Fred Vilensky, EA is a tax practitioner licensed to practice before the IRS and state tax authorities.
Our welcoming, experienced staff is ready to answer your questions. Call us at (208) 935-1040 or request a free consultation today to learn how we can put our exceptional accounting skills to work for you to make your business thrive.
We serve clients across Lewiston, Peck, Lenore, Moscow, Kendrick, Troy, Potlatch, Kamiah, Nezperce, Kooskia, Grangeville, Stites, Ferdinand, Greencreek, Cottonwood, Weippe, Orofino, Winchester, Coeur d'Alene, Spalding, Idaho, Spokane, Clarkston, Asotin, Pullman, Washington, and the surrounding areas.
About Vilensky & Company, LLC
Idaho Individual/ Small Business Tax Accountant & Bookkeeper
Vilensky & Company offers a diverse set of services to those seeking financial and tax help with their small to midsize business or personal financial and tax needs. Vilensky & Company is dedicated to helping small business owners and individuals discover efficient strategies for reducing their tax burden and achieving their financial goals. We provide clients with the most effective strategies for easing their tax burden. We offer a full range of financial services from audit representation, litigation support, to business taxation services. We believe in the value of relationships. We view every client relationship like a partnership and truly believe that our success is a result of your success.
Many small businesses have been hurt by mandatory closures required to slow the spread of the Coronavirus (COVID-19). Fortunately, there are a growing number of resources and relief programs to fall back on, including:
-CARES Act (Coronavirus Aid Relief and Economic Security Act)
-Business Loan Deferment
-Net Operating Loss Provisions
-Employee Retention Credits
It looks like the State of Idaho made a decision to pay back some of the hard earned money that Idahoans relinquished to the state by way of taxes. The state did provide relief to taxpayers that owned and operated a business prior to the pandemic. It now looks like the state will focus on providing some relief to individual taxpayers as well. The State of Idaho is rolling out what they call a 'Tax Rebate' credit starting August 2, 2021. The rebate amount pays $50 per taxpayer and each dependent or 9% of the tax reported on the tax return; whichever is greater. To…