Weekly Tax Brief
“Bunching” medical expenses will be a tax-smart strategy for many in 2017
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- Published: 03 October 2017 03 October 2017
Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only if they exceed that floor (typically a specific percentage of your income). One example is the medical expense deduction.
Read more: “Bunching” medical expenses will be a tax-smart strategy for many in 2017
Why you should boost your 401(k) contribution rate between now and year end
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- Published: 19 September 2017 19 September 2017
One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step.
Read more: Why you should boost your 401(k) contribution rate between now and year end
2017 Q4 tax calendar: Key deadlines for businesses and other employers
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- Published: 12 September 2017 12 September 2017
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2017.
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Watch out for potential tax pitfalls of donating real estate to charity
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- Published: 06 September 2017 06 September 2017
Charitable giving allows you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. For example, if you’ve held the property for more than one year, you generally will be able to deduct its full fair market value and avoid any capital gains tax you’d owe if you sold the property. There are, however, potential tax pitfalls you must watch out for:
Read more: Watch out for potential tax pitfalls of donating real estate to charity
The ABCs of the tax deduction for educator expenses
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- Published: 29 August 2017 29 August 2017
At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s common for teachers to pay for some classroom supplies out of pocket, and the tax code provides a special break that makes it a little easier for these educators to deduct some of their expenses.
Read more: The ABCs of the tax deduction for educator expenses
Yes, you can undo a Roth IRA conversion
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- Published: 23 August 2017 23 August 2017
Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover that you would have been better off if you hadn’t converted it? Fortunately, it’s possible to undo a Roth IRA conversion, using a “recharacterization.”
Put your audit in reverse to save sales and use tax
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- Published: 15 August 2017 15 August 2017
It’s a safe bet that state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — so slim that many businesses use reverse audits to find overpayments so they can seek refunds.
Read more: Put your audit in reverse to save sales and use tax
Will Congress revive expired tax breaks?
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- Published: 08 August 2017 08 August 2017
Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on.
A refresher on the ACA’s tax penalty on individuals without health insurance
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- Published: 01 August 2017 01 August 2017
Now that Affordable Care Act (ACA) repeal and replacement efforts appear to have collapsed, at least for the time being, it’s a good time for a refresher on the tax penalty the ACA imposes on individuals who fail to have “minimum essential” health insurance coverage for any month of the year. This requirement is commonly called the “individual mandate.”
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3 Midyear Tax Planning Strategies for Individuals
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- Published: 25 July 2017 25 July 2017
In the quest to reduce your tax bill, year end planning can only go so far. Tax-saving strategies take time to implement, so review your options now. Here are three strategies that can be more effective if you begin executing them midyear:
Read more: 3 Midyear Tax Planning Strategies for Individuals