Tax Day Tip! Now that your taxes are filed, keep an eye out for IRS-related scams The IRS warns that although scams are especially prevalent during tax season, they also take place throughout the year. (1) As a result, it’s important to always be on the lookout for suspicious activity so that you don’t end…
How can I minimize taxes on my estate? This question may seem simple, but the answer is not so easy. In fact, there are experts who make their living answering just this question. Estate tax liability depends on the year in which you die and the value of your estate when you die (see the…
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) included new gift, estate, and generation-skipping transfer (GST) tax provisions. The 2010 Tax Act provided that in 2011 and 2012, the gift and estate tax basic exclusion amount was $5 million (indexed for inflation in 2012), the GST tax…
Alternative minimum tax (AMT) 2022 2023 Maximum AMT exemption amount $118,100 (MFJ), $75,900 (Single/HOH), $59,050 (MFS) $126,500 (MFJ), $81,300 (Single/HOH), $63,250 (MFS) Exemption phaseout threshold $1,079,800 (MFJ), $539,900 (Single/HOH/MFS) $1,156,300 (MFJ), $578,150 (Single/HOH/MFS) 26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) 206,100 (MFJ/Single/HOH),…
By Ashlea Ebeling Oct. 27, 2022 Many Americans will see their tax burden drop next year because of inflation adjustments made by the Internal Revenue Service. Some will benefit more than others. The inflation adjustments affect tax deductions for workplace benefits such as 401(k) retirement accounts and commuter accounts./PHOTO: GETTY IMAGES The IRS makes annual…
With the markets down from this time last year, Roth conversion may be a perfect option to yield additional tax benefit when moving money. Using Roth Conversions to Reduce Taxes and Give Tax Free Money to Family James Brewer, Contributor Nov. 1, 2022 A Roth Conversion may reduce your lifetime tax bill. It reduced the…
Taxes can take a big bite out of your total investment returns, so it’s helpful to look for tax-advantaged strategies when building a portfolio. But keep in mind that investment decisions shouldn’t be driven solely by tax considerations; other factors to consider include the potential risk, the expected rate of return, and the quality of the investment.
With the holiday season upon us and the end of the year approaching, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. The tax benefits associated with charitable giving could potentially enhance your ability to give and should…
The IRS has released the 2022 contribution limits for health savings accounts (HSAs), as well as the 2022 minimum deductible and maximum out-of-pocket amounts for high-deductible health plans (HDHPs). An HSA is a tax-advantaged account that’s paired with an HDHP. An HSA offers several valuable tax benefits: You may be able to make pre-tax contributions…
As the end of the year approaches, it’s time to consider strategies that could help you reduce your tax bill. But most tax tips, suggestions, and strategies are of little practical help without a good understanding of your current tax situation. This is particularly true for year-end tax planning. You can’t know where to go…