2020 doesn’t just mark a new year, but the beginning of a new decade—and with it, some more changes to the federal tax code. It can often be easy to put tax preparation on the back burner, but being proactive can help you save time, money, and hassle. What steps can you take now to help the 2020 … Read more
Key Retirement and Tax Numbers for 2020 Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2020. Employer retirement plans IRAs The combined annual limit on contributions to traditional and … Read more
The Gift Tax Exemption Explained. The IRS collects taxes on estates valued at $11.4 million or more per individual. Gift taxes exist to ensure that estates can’t evade taxes by giving money away to reduce or eliminate the estate tax bill. You can, however, use annual and lifetime gift tax exemptions to legally reduce your … Read more
Qualified Charitable Distributions: Using Your IRA to Gift. The Tax Cuts and Jobs Act roughly doubled the standard deduction ($12,200 for single filers and $24,400 for married taxpayers filing jointly in 2019) and indexed it for inflation through 2025. As a result, far fewer taxpayers will itemize deductions on their tax returns, and some people … Read more
It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments and how are they taxed? Is it ordinary income or a capital gain? To determine … Read more
Determine Eligibility for Itemized Deductions. Year-end planning is required to determine if capped itemized deductions still exceed the modified standard deduction Consider accelerating income into 2019 or delay income until 2020. Some people may benefit from lower tax brackets. Max out your employer-sponsored retirement plan contributions. The deadline for funding 401(k), 403(b) or 457 plans is Dec. 31. … Read more
April 16, 2019 was an important day for many of us. But do you know why? It was Tax Freedom Day — the day when the average American theoretically earned enough to pay his or her tax obligations for the year. According to the Tax Foundation, Americans will pay $3.4 billion in federal taxes in … Read more
If you were unpleasantly surprised by the amount of tax you owed or the amount of your tax refund when you filed your 2018 tax return, it may be time to check your withholding. It may also be time if there are changes in your life or financial situation that affect your tax liability. Things … Read more
Taxpayers are required to pay most of their tax obligation during the year by having tax withheld from their paychecks or pension payments, or by making estimated tax payments. Estimated tax is the primary method used to pay tax on income that isn’t subject to withholding. This typically includes income from self-employment, interest, dividends, and … Read more
Tis the season! It’s time to start looking at tax planning numbers in preparation for end-of-year and the coming tax season. This snapshot list includes just key income tax planning numbers. Alternative Minimum Tax (AMT) 2017 2018 Maximum AMT exemption amount $84,500 (MFJ), $54,300 (Single/ HOH), $42,250 (MFS) $109,400 (MFJ), $70,300 (Single/HOH), $54,700 (MFS) Exemption … Read more
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