With the fourth quarter of the year upon us and given the many changes brought to bear by the Tax Cuts and Jobs Act of 2017, it is the opportune time to consider some very key questions as it relates to your 2018 taxes. The answers to these questions are critical in determining appropriate actions to take before the end of the year in order to optimize your tax situation. Will the total of your itemized deductions exceed the new higher standard deduction? The increase in standard deduction ... [Continue Reading]
Articles and resources related to Tax Planning.
A Health Savings Account (HSA) is a type of investment account that allows you to save for medical expenses while also reducing your taxable income. In order to establish an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) as defined by government regulations. An HSA is unique in that it is the only type of investment account that provides for both tax-deductible contributions and tax-free distributions (for qualified medical expenses). This unique feature makes the HSA a ... [Continue Reading]
The Tax Cuts and Jobs Act of 2017 has become a catalyst for taxpayers to revisit their charitable giving strategies. Under the new law, many taxpayers will no longer be able to itemize deductions on a regular basis due to the following changes: The standard deduction has been increased from $12,700 to $24,000 for a married couple filing jointly ($26,600 if both spouses are age 65 or older) and from $6,350 to $12,000 for a single taxpayer. The deduction for state income taxes and real ... [Continue Reading]
IRA’s (Individual Retirement Accounts) are one of the most common ways to save for retirement. Conceptually, they are familiar to many, but the details related to and surrounding these types of accounts can be confusing. Many investors are also familiar with Roth accounts, which are a type of an IRA. This time of year, January thru April 15, is a critical time to understand IRA parameters since during that time you can address both tax years--2017 and 2018. In this article by Jim Glass of The ... [Continue Reading]
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act. The changes in the Act represent the most sweeping change to the U.S. tax code in many years and impact individuals and businesses on a level not seen in over 30 years (since 1986, when the Internal Revenue Code was amended). This quarter, we wanted to provide you with a summary of the most relevant provisions. Two additional resources, including the full 570 page report from the Conference Committee, can be found ... [Continue Reading]