Tax Planning
IRS Says No To SALT
Perhaps you have heard of the deductibility limitation on state and local taxes (known as the SALT) imposed by the Tax Cuts and Jobs Act. In summary, the maximum deduction for state, local, and property taxes you can deduct is $10,000 (couple) or $5,000 (single). If your SALT taxes are more than that, they […]
Ten Year-End Tax Tips for 2018
Here are 10 things to consider as you weigh potential tax moves between now and the end of the year.
1. Set aside time to plan
Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a real […]
Enhancing Value of Your Charitable Contributions
You might recall that when the tax legislation was being debated, there was plenty of chatter around the risk that Congress would completely remove the deduction for charitable gifts. This Republican-backed proposition never made it into the final Tax Cuts + Jobs Act, but the tax changes could end up having a similar impact on […]
Reducing SALT Pain
Annually, thousands of professionals use their own artistry and originality to find the best ways to decrease your federal taxes. You know you’re living in new times when state lawmakers are added to the mix.
The reason they’re putting in so much effort is something popularly called the SALT provisions of the new Tax Cuts + […]
What is the difference between a tax deduction and a tax credit?
Tax deductions and credits are terms often used together when talking about taxes. While you probably know that they can lower your tax liability, you might wonder about the difference between the two.
A tax deduction reduces your taxable income, so when you calculate your tax liability, you’re doing so against a lower amount. Essentially, your […]
I received a large refund on my tax return this year. Should I adjust my withholding?
You must have been pleasantly surprised to find out you’d be getting a refund from the IRS — especially if it was a large sum. And while you may have considered this type of windfall a stroke of good fortune, is it really?
The IRS issued over 112 million federal income tax refunds, averaging $2,895, for […]
Protect Your Heirs by Naming a Trust as IRA Beneficiary
Often, tax-qualified retirement accounts such as IRAs make up a significant part of one’s estate. Naming beneficiaries of an IRA can be an important part of an estate plan. One option is designating a trust as the IRA beneficiary.
Caution: This discussion applies to traditional IRAs, not to Roth IRAs. Special considerations apply to beneficiary designations […]
IRS Across the Pond
You probably don’t invest a great deal of time feeling sorry for a certain U.S. citizen named Meghan Markle, who has just tied the proverbial knot with Prince Harry of England. However, an article in the Wall Street Journal, states that the bride-to-be, as well as other American citizens who marry foreigners, are subject to […]
Can I Undo My Roth IRA Conversion in 2018?
The answer is: It depends.
When you convert a traditional IRA to a Roth IRA, you include the value of your traditional IRA, reduced by any nondeductible contributions you’ve made, in your income for federal tax purposes in the year of the conversion. For conversions prior to 2018, if you subsequently decided to “recharacterize” or undo […]
Mid-year Planning: Tax Changes to Factor In
The Tax Cuts and Jobs Act, passed in December of last year, fundamentally changes the federal tax landscape for both individuals and businesses. Many of the provisions in the legislation are permanent, others (including most of the tax cuts that apply to individuals) expire at the end of 2025. Here are some of the significant […]
