In 2017, Congress passed the most significant tax reform since 1986. A specific change to the law is in the Marginal Tax Brackets, or what most people call “Tax Brackets.” Tax brackets are ranges of incomes taxed at a given rate. The new tax bracket rates came into effect on January 1, 2018 and guess […]
Income Tax Projections
Income Tax Projections His pulse raced, his hands and brow dampened, and he squirmed in his chair as he sat across from his accountant. How could I owe $30,000 to the IRS? There had to have been some mistake. He couldn’t possibly owe the IRS $30,000. Unfortunately, this happens more often than you might think […]
The New Tax Bill: When it Comes into Effect
With all the new tax changes coming, you might be wondering when they will come into effect. The new tax bill came into effect on January 1st, 2018. Therefore, any income you earn starting on January 1st, 2018 will be under the new bill and taxed at the new rates. The changes, however, do not […]
What’s new in 2013?
The American Taxpayer Relief Act of 2012, which was signed on January 2, 2013, did not make major changes in the tax rules governing most Americans. But it did create significant tax increases for high-earners. The thresholds identifying “high-earners” differ from one tax provision to the next, leaving many who don’t consider themselves wealthy exposed […]
Take another look at HSAs (health savings accounts)
Year after year, health care and medical insurance costs outpace inflation. One survey, for example, found that health insurance premium costs are growing at five times the rate of wages. It’s little wonder, therefore, that business owners and employees are scrambling for ways to curtail health care expenses. In an effort to address this dilemma, […]
Tax planning if new Medicare taxes apply to you
This year higher-income taxpayers may need to factor additional Medicare taxes into their planning. Not only will the Medicare tax increase on earned income above certain levels, but also a new tax will apply to certain investment income. The traditional Medicare tax has been 2.9% of earned income for self-employed people and 1.45% for employees […]
Take 3 steps now to cut your 2013 taxes
One of the best things about a midyear tax checkup is having the time to investigate, plan, and implement strategies that can reduce your current-year taxes. That’s particularly true this year, since tax legislation enacted in January means many rules for 2013 are already in place, and there’s more certainty about what actions will be […]
Estimated Taxes: Who needs to pay them?
If the bulk of your taxable income is from wages, your tax liability is probably being covered by withholding from your paychecks. However, if you have income that is not subject to withholding, you may need to pay quarterly tax estimates. Many taxpayers who switch from being an employee to being self-employed find out about […]
Tax relief for Sandy victims
Victims of Hurricane Sandy may be entitled to some tax relief, according to a recent announcement by the IRS. Certain tax filing and payment deadlines from late October on will be extended until February 1, 2013. This includes the final 2012 estimated tax payment (normally due January 15, 2013) and payroll and excise taxes (normally […]
Tax legislation gets us past the “fiscal cliff”…… for now
The American Taxpayer Relief Act of 2012 was approved by Congress just after we plunged over the “fiscal cliff”. Although it restores and modifies several expired tax breaks, it doesn’t address other issues. This latest tax law is not likely to be the final word on taxes in 2013, since Congress is once again talking […]