Tax Warrior Chronicles

IRS Advises Certain Vets to Amend Returns to Claim Tax Refunds for Overpayments

Posted on Fri, Jul 13, 2018

By: Drucker & Scaccetti


This week, the IRS advised U.S. veterans who received disability severance payments after January 17, 1991 and included that payment as income to file an amended U.S. Individual Income Tax Return, to claim a credit or refund of the overpayment attributable to the disability severance payment. This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016. If you are a veteran, or know someone who is, please share this important information.

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Exceptions to Early Withdrawal Penalty for 401(k) & IRA Distributions

Posted on Thu, Nov 30, 2017

By: Sherri Sorbello, CPA


Most distributions from 401(k) plans and IRAs are subject to a 10% early withdrawal penalty if they are taken before you reach age 59 ½.  However, like most tax rules, there are certain exceptions allowing you to withdraw funds without a penalty.  This blog will address the most common exceptions to the 10% additional tax on early withdrawals. 

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New Tax-Advantaged Way to Save for Disabled Persons

Posted on Mon, Jun 08, 2015

While our tax laws have long encouraged Americans to save for their kids’ college and to save for their own retirement, families of those with disabilities had no tax-advantaged way for them to save for those individuals. On Dec. 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014, which contains an important new provision for disabled persons. The new law, which applies for tax years beginning after December 31, 2014, allows states to create "Achieving a Better Life Experience" (ABLE) accounts. ABLE accounts are tax-free accounts that can be used to save for disability-related expenses.

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