AIM Tax Services
Tax Return Preparation for Cryptocurrency: Why a Professional Tax Preparer Matters
Cryptocurrency has become an increasingly popular investment and payment method, but it also creates important tax responsibilities. Whether you buy Bitcoin, sell Ethereum, trade digital assets, receive cryptocurrency as income, or use crypto to purchase goods and services, your transactions may have tax implications. Proper cryptocurrency tax return preparation is essential for staying compliant and…
Read MoreI Now Need to Take an RMD — How Does It Affect My Social Security or Pension Income?
Reaching the age when Required Minimum Distributions (RMDs) begin is an important retirement milestone. For many retirees, the first question is not simply, “How much do I have to withdraw?” but rather, “How will this additional income affect my Social Security, pension, and taxes?” The good news is that an RMD generally does not reduce the amount of Social Security or pension benefits you receive. However, an RMD can increase your taxable income and may cause a larger portion of your Social Security benefits to become taxable. Understanding how these sources of retirement income interact can help you avoid surprises at tax time. What Is an RMD? A Required Minimum Distribution is the minimum amount you generally must withdraw each year from certain tax-deferred retirement accounts, including traditional IRAs, SEP IRAs, SIMPLE IRAs, and many employer-sponsored retirement plans. Under current rules, most individuals generally begin RMDs at age 73. The first RMD is for the year you reach age 73, although you generally have until April 1 of the following year to take that first distribution. After that, annual RMDs are generally due by December 31. RMDs are generally taxable as ordinary income unless the distribution includes amounts that are not taxable, such as certain previously taxed basis. Will My RMD Reduce My Social Security Check? Generally, no. An RMD does not reduce your Social Security retirement benefit simply because you took money from your IRA or other retirement account. The Social Security Administration explains that pension payments, annuities, and interest or dividends from savings and investments are not considered earnings for purposes of determining Social Security benefits. IRA withdrawals likewise do not reduce your Social Security retirement benefit. However, there is an important distinction: Your RMD generally will not reduce your Social Security benefit, but it may cause more of your Social Security benefit to be subject to federal income tax. That distinction is extremely important for retirees. How Can an RMD Affect the Taxation of Social Security? The IRS uses a special calculation to determine whether part of your Social Security benefits are taxable. For this calculation, your “combined income” generally includes: Adjusted Gross Income (AGI)+ Tax-exempt interest+ One-half of your Social Security benefits The current base amounts are generally: $25,000 for single filers $32,000 for married couples filing jointly $0 for married individuals filing separately who lived with their spouse at any time during the year Depending on your income, up to 85% of your Social Security benefits may be taxable for federal income tax purposes. An RMD increases your income and therefore can affect this calculation. Example: RMD and Social Security Suppose Mary is retired and receives: Social Security: $30,000 Pension: $20,000 RMD: $25,000 Other taxable income: $5,000 The $25,000 RMD does not cause Social Security to stop or reduce Mary’s monthly benefit. However, the RMD increases Mary’s income. As a result, more of her Social Security benefits may become taxable. This is why retirees should think about their overall tax picture, rather than looking at their RMD in isolation. What About Pension Income? Your pension and RMD are generally separate sources of retirement income. An RMD generally does not reduce a private pension payment. If your pension provides a monthly benefit of $2,000, for example, taking an RMD does not normally cause the pension company to reduce that payment. However, pension income is generally included in the tax calculation to the extent it is taxable. The IRS notes that pension and annuity payments may …
Read MoreTop 4 Tips for Extension Filers
Extension filers don’t have to wait until Oct. 15, 2026, to file their federal tax return. Taxpayers are encouraged not to wait and to take steps to help them prepare an accurate return. Let’s go over a few tips to make completing the return quick and easy. Gather and review tax documents: Complete and accurate…
Read MoreBenefits of Owning a Home for Saving on Income Taxes in Michigan
For many Michigan residents, buying a home is about more than having a place to live. Homeownership can also provide opportunities to reduce certain tax costs while building long-term equity. Understanding the potential tax benefits of owning a home in Michigan can help you make a more informed decision about whether purchasing a home is…
Read MoreAlternative Minimum Tax: What You Need to Know
The Alternative Minimum Tax (AMT) is a federal tax system designed to ensure that certain taxpayers with higher incomes pay at least a minimum amount of federal income tax. While most taxpayers calculate their federal tax using the standard tax rules, some individuals may need to calculate their liability under both the regular tax system…
Read More2026 IRS Tax Changes: What Taxpayers Need to Know About the New Standard Deduction and Tax Brackets
Tax laws change regularly, and understanding the latest IRS tax changes for 2026 can help individuals and families make smarter financial decisions. With updated tax brackets, a higher standard deduction, and several new deductions available to qualifying taxpayers, 2026 could look different from previous tax years. At AIM Financial, we help taxpayers understand how changes…
Read MoreHow AIM Financial Can Help With Multi-Year Tax Return Preparation
Falling behind on taxes can feel overwhelming, especially when multiple years of unfiled returns, missing documents, and IRS notices are involved. Fortunately, you do not have to navigate the process alone. AIM Financial provides professional tax preparation services designed to help individuals and businesses get caught up, organize their financial records, and move forward with…
Read MoreWhy Was My Tax Return Rejected? Common Tax Preparation Issues and How to Fix Them
Few things are more frustrating during tax season than receiving a message that your tax return was rejected. The good news is that a rejected return does not necessarily mean you are in trouble with the IRS. In many cases, the issue is a simple error that can be corrected and resubmitted. At AIM Financial,…
Read MoreWhy Rental Property Owners Benefit From Using a professional experienced tax company
Owning a rental property can be a great way to build long-term wealth, but managing the financial and tax responsibilities that come with rental real estate can quickly become complicated. From tracking expenses to understanding deductions and depreciation, rental property owners have many details to consider when filing their taxes. That’s where working with a…
Read MoreSingle-Member LLC Taxes: What Business Owners Need to Know
Starting a business as a single-member LLC can be an exciting step toward financial independence. However, one of the most important responsibilities that comes with owning an LLC is understanding how to properly file your taxes. While an LLC offers legal protection for your business, your federal tax filing requirements may be simpler—or more complicated—than…
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