2018 Year-End Tax Planning for Individuals

Brian SingletonBlog, Watch Your Wallet

Once again, tax planning for the year ahead presents a number of challenges, this year, primarily due to tax laws changes brought about the passage of the Tax Cuts and Jobs Act of 2018. These changes include the nearly doubling of the standard deduction, elimination of personal exemptions, and numerous itemized deductions reduced or eliminated. Let’s take a closer look.

Home Equity Loan Interest Still Deductible (Sometimes)

Brian SingletonBlog, Watch Your Wallet

The Tax Cuts and Jobs Act of 2017, enacted December 22, 2017, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan. Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal … Read More

2016 Year-End Tax Planning for Individuals

Brian SingletonBlog, Watch Your Wallet

Tax planning strategies for individuals this year include postponing income and accelerating deductions, as well as careful consideration of timing related investments, charitable gifts, and retirement planning. General tax planning strategies that taxpayers might consider include the following: Sell any investments on which you have a gain or loss this year. For more on this, see Investment Gains and Losses, below. If you anticipate an increase in taxable income in 2016 and are expecting a bonus at year-end, try to … Read More

Tax Brackets, Deductions, and Exemptions for 2016

Brian SingletonBlog, Watch Your Wallet

More than 50 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2016. Let's take a look at the ones most likely to affect taxpayers like you. The tax rate of 39.6 percent affects singles whose income exceeds $415,050 ($466,950 for married taxpayers filing a joint return), up from $413,200 and $464,850, respectively. The other marginal rates--10, 15, 25, 28, 33 and 35 percent--and related income tax thresholds--are found at IRS.gov. The standard ... Read More

10 Tax Breaks Reauthorized for Tax Year 2015

Brian SingletonBlog, Watch Your Wallet

Congress finally took action in late December and passed a tax extender bill formally known as the Protecting Americans from Tax Hikes Act of 2015 (PATH), which was then signed into law. Retroactive to January 1, 2015, many tax provisions were made permanent while others were extended through 2016 or 2019. Let's take a look at some of the tax provisions most likely to affect taxpayers when filing their 2015 tax returns. 1. Teachers' Deduction for Certain Expenses Primary and ... Read More

Individual Tax Planning for 2015

Brian SingletonBlog, Watch Your Wallet

Tax planning strategies for individuals for 2015 include income and deductions timing, as well as careful consideration of timing related investments, charitable gifts, and retirement planning.