Tax planning Feed

It's November. You know what that means. Yes, the presidential election will be over next week. But November also means that we have two months to make some tax moves to ensure we don't encounter any tax turkeys. Don't be gobbled up by tax concerns. Make these November tax moves. (South Park/Comedy Central turkeys via GIPHY) Health care considerations: November kicked off with open season for Affordable Care Act, aka Obamacare, enrollment. If you don't get medical insurance at work, you should check out the Health Care Marketplace for coverage. You'll need minimal essential coverage or you'll owe a tax... Read more →


Welcome to Part 6 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the series' first item: Income Tax Brackets and Rates. Today we look at changes to estate and gift tax amounts, as well as limits on investment income for children, known as the kiddie tax. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. There's a time for play and a time for generational tax planning.... Read more →


Welcome to Part 5 of the ol' blog's series on 2017 inflation adjustments. We're halfway through the series, and you can find links to all 2017 inflation posts in the first item: Income Tax Brackets and Rates. Today we look at changes to some medical tax provisions. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. How are you feeling? If not so well, then by all means get to the doctor. And be sure to use some... Read more →


Welcome to Part 4 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the first item: Income Tax Brackets and Rates. Today we look at changes to some popular credits and deductions. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. You can jump for joy like these youngsters if you can claim some of these popular inflation-adjusted credits and deductions. The key to paying the least tax... Read more →


Welcome to Part 3 of the ol' blog's series on 2017 inflation adjustments. You can find links to all 2017 inflation posts in the first item: Income Tax Brackets and Rates. Today we look at changes to retirement and pension plans. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. Save early, save often to create an overflowing nest egg. Even in a contentious election year, there's one thing everyone in all political parties can agree on: retirement... Read more →


Welcome to Part 2 of the ol' blog's series on 2017 inflation adjustments, which kicked off yesterday with the tweaked income tax brackets and rates. Today we look at standard and itemized deductions, personal exemptions and limitations on these tax situations that apply to some wealthier taxpayers. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. Standard deduction amounts go up: Itemized deductions get a lot of attention. There are several of them and they require more attention... Read more →


It's that special tax time of year, when the Internal Revenue Service releases its annual inflation adjustments for more than 50 tax provisions. This is the first in a series on the 2017 tax year inflation adjustments. Links to the other posts are at this end of this article. For 2017, the total is 55 amounts changes, ranging from the widely used tax rate tables and income brackets and standard deduction and exemption amounts to the more arcane treatment of dues paid to agricultural or horticultural groups and the tax on arrow shafts. As much fun as it would be... Read more →


October is one of my favorite months, as it ushers in crisp, cooler temperatures. This time of year has two names, fall and autumn. October also is a key month for some important tax moves. And there are many names for taxes, too, although not all printable in the ol' blog. I know it's tempting to rant about taxes instead of thinking about or actually acting on the, especially this time of year. I, too, want to be outside enjoying the arrival of fall. But first I have to take care of a couple of tax tasks. Here are four... Read more →


Saving soon and often for your or your children's college education is critical. But just as important as putting away higher education money is knowing when to take out that college fund cash. 529 plan benefits, possible pitfalls: This is especially true of the tax-favored 529 plans that states offer. Your deposits to a 529 plan are not tax deductible, but the funds grow tax-free. And when you or your child withdraws the money, there's no tax bill as long as you use the funds to pay for qualifying college costs. Withdrawing 529 money, however, is not as simple as... Read more →


Donald Trump's revised tax plan, which many economists and tax experts have decried as the latest version of Republican supply-side economics, is still getting a lot of attention. The biggest criticism is that the tweaked tax proposal, despite Trump's populist spin, still gives ways too much to the wealthy. Just who would win and exactly how much in the Trump vs. Hillary Clinton tax battle will continue to be debated (though perhaps not formally…) until Nov. 8. Delaware, considered by many to be America's top domestic tax haven, welcomes drivers and taxpayers looking to keep money out of tax collector... Read more →


Are you one of the around 10 million taxpayers who got an extension to file? I was. Are you one of this group who's yet to file a tax return? I am. What are we waiting for? We paid any tax we owed, or a close guesstimation of our tax bill, when we filed for the extra six months back in April. So we're not that worried about a big tax bill. And we fully intended to get to the tax task sooner rather than later. But we woke up today, took a look at the calendar (or our smartphone)... Read more →


I've reached a milestone age where doctors seem to think a person suddenly needs every test medical science has so far devised. Routine blood tests were the least of my worries after my last doctor visit. I am pushing back on some of my physician's suggestions for several reasons. They range from "I feel fine" and "I have no family history of that particular ailment/disease/condition" to "Ewwwww!" to "I don't have time" and "Wow, that costs an awful lot." As for the expense argument, even though I have medical insurance, it has a deductible. A sizeable one. My medical approach... Read more →


June is jam-packed with special days. It kicks off with the official start of the Atlantic/Gulf of Mexico hurricane season, which seems a bit late since we've already seen two storms form this year. Then there's Flag Day, Father's Day and the arrival, here in the Northern Hemisphere, of summer. And I'm not even counting things like today's National Doughnut Day and all the June weddings that will be special calendar dates for those happy couples. And yes, there are some tax connections to all those days. They are duly noted over in the ol' blog's right column, just under... Read more →


If you work in the world's oldest profession, finances can be problematic. First, your job is illegal, so you don't want to do anything to draw unwanted attention to your line of work. Neither do your clients. So escorts, prostitutes and other types of sex workers tend to operate on a cash basis. That, however, raises the question of what to do with all those loose dollars. Even with today's minuscule interest rates, you don't want to keep cash under a mattress. Tracing cash transactions: Banks, despite all their problems, are generally safer than having a lot of dollars stashed... Read more →


What do hearts and flowers, leaping amphibians and taxes have in common? February! The shortest month of the year is upon us. In 2016, however, it's a day longer because it's Leap Year, hence the frog allusion, adding a 29th day to our calendars. Then, of course, there's Feb. 14, Valentine's Day. And February also is a traditionally busy time for taxes. This is the month that most of us finally get all the tax statements we need to file our returns. And folks who filed early are anxiously awaiting their refunds. Whether you're working on your 2015 taxes or... Read more →


Powerball Update, Jan. 10, 2016: There are some new millionaires in America this morning, including three Texans (one here in Austin, who, sad for me, is not me) who matched 5 of 6 Powerball numbers last night. But there was no Powerball big jackpot winner, so the drawing on Wednesday, Jan. 13, night will be for more than $1 billion for the first time. This morning it was $1.3 billion, with a cash lump sum payout of $806 million. This post applies to the latest winners, as well as the lucky person/people who win on Wednesday. A Lottery is a... Read more →


Here's one of the fun things about taxes -- and no, I am not using "fun" and "taxes" in the same sentence because the 2016 filing season has already driven me to drink (that'll come later) -- you need to think about two tax years simultaneously. It's the 2016 tax filing season, but it's our 2015 tax returns that we focus on finishing. The annual meeting of two tax years also is apparent in the income tax brackets. These Internal Revenue Service tables show us how much of our money will be taxed at what rates. The IRS usually issues... Read more →


Twice the love, twice the early morning feedings and twice the tax breaks. That's what parents of twins can expect. And when the twins are born in different tax years, the earlier child's arrival provides tax breaks before mom and dad have to change a diaper. That's the unusual, but not unheard of, situation when one twin is born late on New Year's Eve and the sibling arrives early on New Year's Day. In fact, it happened twice -- that I know of -- on Dec. 31, 2015, and Jan. 1, 2016. And both doubly delightful deliveries were in Southern... Read more →


Hello 2016! Some of us (not me) got up early to welcome you. Others (me, as you can tell from the posting time on this item) are still easing into this brand new year. But one thing that most of us soon will be doing, regardless of our post-New Year's Eve celebration energy level, is making New Year's resolutions. Yeah, I know making resolutions is the annual, and usually temporary, victory of hope over experience. Most of our attempts to make ourselves and our lives better, at least within the strictures of quick and catchy Jan. 1 lists of goals,... Read more →


Welcome to the last week of 2015. The end of the calendar year is important not just for your New Year's Eve party planning purposes, but also because when it comes to most tax moves, Dec. 31 is a critical and firm deadline. So with the soon-to-be-old year rapidly winding down, here are 10 tax moves to make by Dec. 31. 1. Take your retirement account distribution. Most owners of tax-deferred retirement accounts who are age 70½ or older must take a specific amount out of their nest eggs by the end of the year or face stiff penalties. This... Read more →