02/05/2026
Quick glimpse into my world
Here is a w2 client that ya’ll call “straight forward” my client pulled from their retirement fund last year. Early withdrawals are taxed and penalized. Retirement funds are also added to your AGI as income. With the tax and penalty from her retirement and her w2 her refund starts at $7690.
Stay with me, this is where it gets fun. 🫡
An exception to the 10% penalty is allowed if they withdrew due to a federally declared disaster. She’s in Houston, Houston had flooding last year and fema declared a disaster in July. I researched the disaster info from the fema website, added it to the return and her new refund amount is the $8712. She worked a little overtime last year and once that was entered it brought her to $8754. She also has a HSA (health savings account, code w box 12 on the w2) once i added form 8889 to the return for her HSA it brought her final refund amount to $9174 😮💨
No illegal credits or falsified returns! And still a decent refund without lowering her AGI. Nothing about this is “straight forward”. It takes knowlwdge of the industry laws and contonuing education to be able to provide top tier service to your clients.
Simmons Financial Group is that! Contact me today for assistance with your refund. I’m worth what I charge 🫶🏾 504-232-9626 to get started
