Take Note of the Distinctive Features of Roth IRAs For some people, Roth IRAs can offer income and estate tax benefits that are preferable to those offered by traditional IRAs. However, it’s important to take note of just what the distinctive features of a Roth IRA are before making the choice. Traditional vs. Roth The biggest difference between traditional and …
Don’t Let the Kiddie Tax Play Costly Games with You & 4 Questions to Ask Before Hiring Household Help
Don’t Let the Kiddie Tax Play Costly Games with You It’s not uncommon for parents, grandparents and others to make financial gifts to minors and young adults. Perhaps you want to transfer some appreciated stock to a child or grandchild to start them on their journey toward successful wealth management. Or maybe you simply want to remove some assets from …
Deducting Home Equity Interest Under the Tax Cuts and Jobs Act & Three Common Types of IRS Tax Penalties
Deducting Home Equity Interest Under the Tax Cuts and Jobs Act Passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 has led to confusion over some longstanding deductions. In response, the IRS recently issued a statement clarifying that the interest on home equity loans, home equity lines of credit and second mortgages will, in many cases, remain …
Get an Early Tax “Refund” by Adjusting Your Withholding & Foreign Accounts Reporting Requirements
Get an Early Tax “Refund” by Adjusting Your Withholding Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the …
Child Credit to Get Even More Valuable & The New Deal on Employee Meals and Entertainment
No Kidding: Child Credit to Get Even More Valuable The child credit has long been a valuable tax break. But, with the passage of the Tax Cuts and Jobs Act (TCJA) late last year, it’s now even better — at least for a while. Here are some details that every family should know. Amount and limitations For the 2017 tax …
Dynasty Trusts Are More Valuable Than Ever & Business Owners: Brush Up on Bonus Depreciation
Dynasty Trusts Are More Valuable Than Ever The Tax Cuts and Jobs Act (TCJA), signed into law this past December, affects more than just income taxes. It’s brought great changes to estate planning and, in doing so, bolstered the potential value of dynasty trusts. Exemption changes Let’s start with the TCJA. It doesn’t repeal the estate tax, as had been …
Making 2017 Retirement Plan Contributions in 2018 & When an Elderly Parent Might Qualify as Your Dependent
Making 2017 Retirement Plan Contributions in 2018 The clock is ticking down to the tax filing deadline. The good news is that you still may be able to save on your impending 2017 tax bill by making contributions to certain retirement plans. For example, if you qualify, you can make a deductible contribution to a traditional IRA right up until …
Highlights of the New Tax Reform Law & Help Prevent Tax Identity Theft By Filing Early
Highlights of the New Tax Reform Law The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers. Below are highlights of some of the most significant changes affecting individual and business taxpayers. Except where noted, these …
5 Common Mistakes When Applying For Financial Aid & Ensuring Your Year-End Donations Are Tax-Deductible
5 Common Mistakes When Applying For Financial Aid Given the astronomical cost of college, even well-off parents should consider applying for financial aid. A single misstep, however, can harm your child’s eligibility. Here are five common mistakes to avoid: 1. Presuming you don’t qualify. It’s difficult to predict whether you’ll qualify for aid, so apply even if you think your net …
Mutual Funds and Taxes & Are Frequent Flyer Miles Ever Taxable?
Handle With Care: Mutual Funds and Taxes Many people overlook taxes when planning their mutual fund investments. But you’ve got to handle these valuable assets with care. Here are some tips to consider. Avoid year-end investments Typically, mutual funds distribute accumulated dividends and capital gains toward the end of the year. But don’t fall for the common misconception that investing …