As part of a major spending package, President Trump has signed the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”), legislation that makes major changes to IRAs and other retirement plans. The SECURE Act offers more incentives for individuals and small business owners to save for retirement, but may require an urgent rethinking of […]

As the end of the year approaches, it’s time to consider strategies that could help you reduce your tax bill. But most tax tips, suggestions, and strategies are of little practical help without a good understanding of your current tax situation. This is particularly true for year-end planning. You can’t know where to go next […]

What are appropriate checklists for year-end tax planning? Tax planners often develop checklists to guide taxpayers toward year-end strategies that might help reduce taxes. Typically, suggestions are grouped into several different categories, such as “Filing Status” or “Employee Matters,” for ease of reading. When year-end approaches, it might be wise to review each suggestion under […]

What is accelerating income/postponing deductions? One goal of year-end tax planning is to use IRS allowances, such as deductions and exemptions, to minimize your overall tax liability. Another is to recognize income when it hurts you least. Generally, this means that you should postpone your income and accelerate your deductions. However, there are occasions when […]

What is postponing income/accelerating deductions? Postponing income and accelerating deductions are two techniques commonly employed by taxpayers to minimize tax liability during the current year. These techniques are part of year-end tax planning. Your ability to utilize a deduction depends largely on when you incur the deductible expense. In many cases, you can control whether […]

You don’t want to pay more in federal income tax than you have to. With that in mind, here are five things to consider when it comes to keeping more of your income. 1. Postpone your income to minimize your current income tax liability By deferring (postponing) income to a later year, you may be […]

Annuities are fairly straightforward products as far as taxation is concerned. To the extent that a distribution is considered a return of your investment in the contract, no income tax is due; to the extent that a distribution is considered earnings, income tax is due (ordinary, not capital gains). In addition, a distribution n taken […]

Working from home can certainly provide you with personal benefits, such as a flexible schedule and more family time. But increasing numbers of people are discovering the tax advantages as well. It’s no secret that you generally can’t deduct certain personal expenses (e.g., homeowners insurance, utilities, and home repairs) on your federal income tax return. […]

Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments such as getting a driver’s license at 16 and voting at 18. But beginning at age 50, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits. 50 — Taxable distributions […]

Year-end tax planning is on the agenda for many taxpayers, with good reason. That said, you don’t have to wait for November or December to make astute moves. Planning in June or July can lead to tax savings that might be reduced or lost altogether if you wait for late fall to act. Here are […]