DHJJ Financial Advisors offers insight on a variety of topics. From current market events to our perspective on timeless financial topics, you will find that our articles provide information that will help you to navigate your own financial landscape.
DHJJ's Terry Cicero leads the webinar and goes over the major changes for individuals, such as the new tax rates, standard deduction, exemptions, child tax credit, itemized deductions, and other changes. The webinar ends with several examples on how the new tax law can impact your own unique situation.
It’s time to take a fresh look at Qualified Charitable Distributions after tax reform
Many taxpayers, especially retirees with little or no mortgage interest, will no longer itemize their deductions beginning with the 2018 tax year due to the nearly doubling of the standard deduction (to $24,000 for married filing joint) and due to changes (limitations/elimination) to other deductions. Taxpayers who claim the standard deduction will not see any income tax savings from any charitable contributions.
There is an opportunity for many taxpayers to accelerate some deductions into 2017 to reap significant tax savings. The Tax Reform bill now signed into law nearly doubles the standard deduction while eliminating or limiting certain itemized deductions.
Webinar recording on Tax Reform: What You Need to Know Before 2017 Ends
The tax reform bills in Congress are set to bring significant changes to the tax system. Join DHJJ tax professionals Terry Cicero and Scott Singer on a short webinar to hear about proposed changes for individuals–and what you can do to save tax dollars for 2017 before the end of the year.
Where has the year gone? The holiday season will soon be in full swing and you may not give year-end tax planning the attention it deserves. Too often taxes are only thought of when they need to be paid or when a tax return needs to be filed; this can be costly. There could be actions to take before year-end to minimize your tax bill or to take advantage of a unique tax situation you are in.
Where Do You Stand in 2017? Know Your Estimate of Taxable Income
It’s imperative that a year-end tax projection be done to see where 2017 income stands to arrive at an estimate of taxable income. The projection is the starting point to see what the tax is on the next dollar of income or what the tax benefit is on the next dollar of deduction. Due to the alternative minimum tax (AMT) and certain phase-outs you cannot assume that your next dollar of income or deduction will be at your marginal tax rate. For example, many taxpayers in the $200,000 to $300,000 income range fall into a marginal tax rate of 25% to 28%, but, most taxpayers in this income range actually pay tax at a 35% rate on an additional dollar of income because they are subject to the AMT and phase-out of the AMT exemption.
Last month we covered the basics of a Roth IRA conversion. (If you missed it, Read it Here). This month we'll discuss a few more mechanics of converting along with conversion strategies to maximize tax savings. Let's get to the Q&A...
1. First, can you provide clarity on the timing of the conversion and when it’s income for tax purposes?
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