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So, you are feeling pretty good about that lingering debt that has finally been stamped "paid in full." 

Maybe you have refinanced, modified a loan or emptied the piggy bank to clear last year's credit card frenzy that left you with a bothersome monthly payment, accruing fees and a high interest rate.  But, is it all that simple? Will debt cancellation bu ok "as is" or are there other considerations to factor?

As recommended and published by the IRS, below, find a few of most common situations that you should be aware of surrounding debt cancellation and income. 

 The following is an article published March 2, 2016, by Michael Cohn of Accounting Today. 

Deep into February, I begin to receive two very common questions:

The Internal Revenue Service (IRS) has begun issuing Identity Protection PINs (IP PINs). The IP PIN is a unique, six-digit number that is assigned annually to victims of identity theft (whose cases have been resolved) for use when filing their federal tax return. An IP PIN helps the IRS verify a taxpayer's identity and accept their electronic or paper tax return.

When a taxpayer has an IP PIN, it prevents someone else from filing a tax return with their social security number (SSN) as the primary or secondary taxpayer (spouse).

Many business owners stress over gathering receipts, recalculating figures and some even lose sleep over filling out their tax yearly organizer. But did you know, there are five things your CPA really wants to see when you submit your information so that he or she can start to work on your taxes? Let’s take a look...

Thinking about and actually forming an estate plan is not an easy task. Most people will admit putting off the process because they do not want to think about death. But, if you look at estate planning as an action of love, you may begin to see it from another perspective. 

What many do not consider unless they have dealt with it first hand is that being a widow or executor is equally, if not more difficult, to deal with. Not only are they forced to sift through many financial and legal documents, but also grieve while doing so. I was once an executor for a client who passed away with no family members other than a niece that lived several hours away. His financial records were a mess.

As you can imagine, it was quite the process of collecting his records and figuring out who to contact for his life insurance and retirement accounts and identifying all of his assets. As the executor, part of my job was to locate, collect, and distribute his assets to his friends and family members as his Will stated, but how could I be certain all of his assets were actually collected? One Saturday, with his niece, we drove to every bank in the area and asked if he had an account. We found two safety deposit boxes, one checking account, and two CDs we had no idea he had (all at different banks).

A simple document can assist in making the process far easier. I like to refer to it as a love letter, others may call it a letter of instruction. This could be the most appreciated letter you ever write.

Simply, it is a letter to your spouse, executor, and beneficiaries that includes, but is not limited to, a list of your estate planning documents and brief description, list of your assets (including bank accounts, life insurance, retirements accounts, etc), and identify and provide contact information for your advisors (accountant, attorney, investment).

The amount of information you could include in this instructional letter is endless. Consider also your social media and email usernames and passwords. Most companies have very strict policies about who can access an account after death.

Would you want your Facebook or email account closed after you pass? If so, providing your usernames and passwords, with your wishes, ensures all accounts will be closed or updated as you desire. Let’s not forget about your mortgage, credit cards, car loan, student loan, Section 529 plan, and human resource contact information at your employer.

Estate planning can be confusing. We are available to help you plan so your future, and those of your loved ones, is solid and secure. Please feel free to contact us at info@zinnerco.com or 216-831-0733.

Almost all of us put money into some type of retirement plan with the goal of one day being able to retire and live comfortably. 

Sometimes, though, you find yourself in need of a little extra money for things such as attending college, buying a home, assisting with medical expenses, and the list goes on. So, you decide to take an early IRA distribution to help pay for these expenses. While these are all very important and necessary expenses, understand that once a distribution has been made from an IRA, a taxable event has occurred. 

Taxable Event - What it will cost you
In addition to paying income tax on the distribution, there may be an additional 10% penalty on an early distribution that could apply to taxable distributions made before one reaches age 59 ½.  Fortunately, there may be some good news; there are a number of circumstances that can result in an exception to the 10% penalty. 

Let's take a look at the exceptions to the 10% IRA withdrawal penalty for a distribution prior to age 59 ½ and the circumstances that must occur :