Tax

What The New Tax Bill Means For You

The enactment of the Tax Cuts and Jobs Act represents “the most sweeping overhaul of the U.S. tax code in more than 30 years.”1 For millions of Americans and businesses it means an altered financial and investment landscape with new opportunities and challenges in the years ahead. Keep in mind, however, that the information in this material is not intended as tax advice, and may not be used for the purpose of avoiding any federal [...]

2018-11-29T18:47:05-04:00Tax|

Tax Rules When Selling Your Home

How the gains from the sale of a primary residence are taxed has changed in recent years. If you have recently sold your home, or are considering doing so, you may want to be aware of these new rules. Home Sale If you owned and lived in your home for two of the last five years before the sale, then up to $250,000 of profit may be exempt from federal income taxes. If you are [...]

2018-11-29T18:45:28-04:00Tax|

Does Your Child Need To File An Income Tax Return?

As parents, we encourage our children to work so they can learn important values about work and independence. At what point, if at all, do children need to file an income tax return for the money they earn? The IRS does not exempt anyone from the requirement to file a tax return based on age, even if your child is declared as a dependent on your tax return.¹ Your dependent children must file a tax [...]

2018-11-29T18:32:28-04:00Tax|

You May Need To Make Estimated Tax Payments If…

You may have to make estimated tax payments if you earn income that is not subject to withholding, such as income from self-employment, interest, dividends, alimony, rent, realized investment gains, prizes, and awards. You also may have to pay estimated taxes if your income tax withholding on salary, pension, or other income is not enough, or if you had a tax liability for the prior year. Please consult a professional with tax expertise regarding your [...]

2018-11-29T18:47:25-04:00Tax|

Six Most Overlooked Tax Deductions

Who among us wants to pay the IRS more taxes than we have to?¹ While few may raise their hands, Americans regularly overpay because they fail to take tax deductions for which they are eligible. Let’s take a quick look at the six most overlooked opportunities to manage your tax bill. Reinvested Dividends: When your mutual fund pays you a dividend or capital gains distribution, that income is a taxable event (unless the fund is [...]

2018-11-29T18:44:32-04:00Tax|

“Dirty Dozen” Tax Scams To Watch For

Every year the Internal Revenue Service (IRS) releases its list of tax scams, spotlighting the myriad ways that people try to separate you from your money.¹ The 2016 “Dirty Dozen” Identity Theft Using your personal information, an identity thief can file a fraudulent tax return and claim a refund. If you’ve been a victim of stolen personal information, you can contact the IRS so the agency can protect your tax account. Phishing Be wary of [...]

2018-11-29T18:31:28-04:00Tax|

Red Flags For Tax Auditors

No one wants to see an Internal Revenue Service (IRS) auditor show up at his or her door. The IRS can’t audit every American’s tax return, so it relies on guidelines to select the ones most deserving of its attention. Here are six flags that may make your tax return prime for an IRS audit.¹ The Chance of an Audit Rises with Income According to the IRS, less than 1% of all individual taxpayer returns are [...]

2018-11-29T18:44:17-04:00Tax|

Donating Art: Taxation Abstraction

The varied reasons to donate art include a personal affinity for a museum, the desire to create a legacy, and the tax consideration that may come with the donation. The tax rules surrounding the tax deduction of art are complex and confusing.¹ When donating art, donors can generally claim a federal tax deduction of up to 30% of their adjusted gross income each year. If the value of the donation exceeds this 30% limit, the [...]

2018-11-29T18:32:37-04:00Tax|

Tax Deductions You Won’t Believe

While Americans are entitled to take every legitimate deduction to manage their taxes, the Internal Revenue Service (IRS) places limits on your creativity. Here are some examples of deductions from the IRS that were permitted and some that were, well, too creative.¹ Creative Deductions that Passed Muster Usually a child’s school-related costs are not deductible. However, one taxpayer was allowed to deduct the cost of travel, room, and board as a medical expense for sending [...]

2018-11-29T18:44:53-04:00Tax|