Midwest CPA, LLC

04/16/2025

Shout out to Kari D. Coultis and Kali Dvorak for Crumble Cookie. Thank you for the cookies and for thinking of us on tax day. You sure made our day!! ❤️

02/19/2025

The Child Tax Credit (CTC) is available to eligible taxpayers with children under age 17. For 2024 and 2025, the credit is up to $2,000 for each qualifying child and is partially refundable. You qualify for the full CTC amount if you meet all eligibility factors and your adjusted gross income isn’t more than $200,000 ($400,000 if married and filing jointly). Parents with higher incomes may be eligible to claim a partial credit. You must include the child’s Social Security number on your return. In 2026, the maximum CTC is scheduled to drop to $1,000 per qualifying child unless Congress acts to extend the higher amount. Contact us with any questions about your situation.

02/02/2025

01/18/2025

The 2025 limit on IRA contributions is $7,000. The IRA catch-up contribution limit for those age 50 or older is $1,000. You can claim a deduction for a traditional IRA if you meet certain conditions. If you or your spouse are covered by a retirement plan at work, the deduction may be phased out until it’s eliminated. Phaseouts don’t apply if neither spouse has a workplace plan. For single taxpayers covered by a workplace plan, the 2025 phaseout begins at $79,000. For married joint filers, if you're covered at work, the 2025 phaseout begins at $126,000. If you aren’t covered by a workplace plan but your spouse is, the 2025 phaseout begins at $236,000.

12/12/2024

If you own a small business with no employees (other than your spouse) and want to set up a retirement plan, consider a solo 401(k) plan. This is also an option for self-employed individuals or business owners who wish to upgrade from a SIMPLE IRA or SEP plan. For 2024, you can make an elective deferral contribution of up to $23,000 of your net self-employment (SE) income ($30,500 if you’ll be 50 or older as of Dec. 31, 2024). On top of the elective amount, an extra contribution of up to 20% of your net SE income is allowed for solo 401(k)s. For 2024, the combined elective and extra contributions can’t exceed $69,000 ($76,500 for 50 or older) or 100% of net SE income. Questions? Contact us.

12/07/2024

As year end approaches, you may be thinking about tax strategies. One way to reduce potential estate taxes and show generosity to loved ones is to give cash gifts before Dec. 31. Taxpayers can transfer large amounts using the annual exclusion. In 2024, the exclusion amount is $18,000. It covers gifts you make to each recipient. That means if you have three children, you can transfer $54,000 to them in 2024, free of federal gift taxes. Married couples can consent to give each recipient up to $36,000 a year. Other rules may apply, and you need to file a gift tax return if you give more than $18,000 or consent to give gifts with your spouse. We can prepare a gift tax return for you.

11/26/2024

We are accepting nominations for families in need this holiday season. 🎄

Diltor Properties, Scribner Enterprises, Superior Auto Care, Walters Pumpkin Patch, and Midwest CPA, LLC are joining together again this year to help make sure every family is able to wake up Christmas morning with presents under the tree and dinner on the table. 🎄We’re accepting nominations for families with children that are needing a little extra help in doing this. ❤️ Please PM any of us if you know of a deserving family that needs a little extra help in making their Christmas dreams come true.🎁 We will carefully pick a few families and make sure they have a very magical Christmas morning. 🎅🏻

From our families to yours, have a very merry and blessed Christmas!! ❤️🎅🏻🎄

11/13/2024

If you take an early distribution from your traditional IRA, (before you reach age 59½), you may be hit with a penalty. In addition to the income tax you’ll pay for the withdrawal, you’ll typically pay a 10% early withdrawal penalty. Exceptions exist, such as withdrawals to pay higher education costs. Suppose you’re under 59½, getting divorced and dividing a traditional IRA with your former spouse. Does that count as an exception? Generally, no, says the IRS, though there are ways to avoid the penalty. They involve a Qualified Domestic Relations Order or a proper trustee-to-trustee transfer under a divorce or separation court order. Mistakes can be costly. Contact us for help.

10/12/2024

Thank you Shepherd Insurance Group and Wichita Real Producers for putting on this great event. We are looking forward to the gala February 15th!

10/09/2024

The IRS is providing tax relief for farmers and ranchers forced to sell or exchange livestock because of drought conditions in 41 states and other areas. Specifically, farmers and ranchers may have additional time to replace their livestock and defer tax on any gains from forced sales or exchanges. The tax relief generally applies to capital gains realized by eligible farmers and ranchers on sales or exchanges of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter, aren’t eligible. Learn which U.S. jurisdictions fall under the tax relief by visiting https://bit.ly/47Q4S25 and scrolling down to the appendix.