Tax filing season kicked off as scheduled on January 28. But tax returns for 2018 may require extra time to file and process due to confusion over the sweeping tax law changes under the Tax Cuts and Jobs Act (TCJA). Most the TCJA provisions that affect individuals are effective for 2018 through 2025, unless Congress extends them. In addition, people who prepare their own returns may … [Read more...] about Six Common Mistakes When Taxpayers Prepare Their Own Tax Returns
Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you're eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here's a series of side-by-side comparisons to help you decide.Eligibility Requirements SIMPLE IRASolo 401(k)SIMPLE IRAs … [Read more...] about SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Health care is a top concern for many Americans, especially people who are age 65 and older. While these individuals qualify for basic Medicare insurance, they may need to pay additional premiums to get the level of coverage they desire. Those premiums can add up to a substantial annual sum, especially if you're married and both you and your spouse are paying them. But the silver lining is … [Read more...] about Could Medicare Premiums Lower Your Taxes?
Have you ever kept a New Year's resolution for the entire year? Every January, millions of Americans make promises to eat less, exercise more and save for the future. But most resolutions are forgotten by spring. However, there are ten promises that relate to your financial health that you can't afford to abandon. 1. Make a financial plan. Creating a financial plan forces you … [Read more...] about 10 New Year’s Resolutions to Improve Your Personal Financial Position
Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must implement new revenue recognition rules in fiscal years that start after December 15, 2018. Are your accounting systems and personnel ready for this fundamental shift in financial reporting? The effects will likely be more far-reaching than expected, based on feedback from public companies that … [Read more...] about Revenue Recognition: New Rules Go Live for Private Companies
Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. The following limits will increase for 2019 based on the cost of living: The elective deferral limit for employees participating in 401(k), 403(b) … [Read more...] about IRS Ups the Ante on Retirement Contributions
The countdown to year end has begun. Have you positioned yourself to minimize your 2018 tax bill? The Tax Cuts and Jobs Act (TCJA) made sweeping changes to the federal tax laws that will affect virtually all individual taxpayers — and most of those changes went into effect for this tax year. Here are four tried-and-true tax planning strategies, tweaked to account for the TCJA. 1. … [Read more...] about 4 Year-End Strategies to Lower Your Personal Tax Bill
Estate and Gift Tax Basics The TCJA sets the unified federal estate and gift tax exemption at $11.4 million per person for 2019 (up from $11.18 million for 2018). For married couples, the exemption is effectively doubled to $22.8 million for 2019 (up from $22.36 million for 2018). The exemption amounts will be adjusted annually for inflation from 2020 through 2025. In 2026, the exemption is … [Read more...] about Estate Tax Planning Tips for Married Couples
The Internal Revenue Service, along with the Department of Labor and the Department of Health and Human Services, have issued proposed regulations that would allow employers to fund tax-exempted health reimbursement arrangements to help pay for employees' individual health insurance premiums. A health reimbursement arrangement (HRA) is an employer-funded arrangement designed to reimburse … [Read more...] about Proposed Regulations Would Expand Health Reimbursement Arrangements
Roughly one in five Americans in the workforce believe that "working for pay" will be a major source of their retirement income. This is according to the "2018 Retirement Confidence Survey" produced by the Employee Benefit Research Institute (EBRI). Nearly half of respondents believe paid work will be a minor source of retirement income for them. This widespread expectation of working in … [Read more...] about Effective Retirement Planning Includes Contingencies