CPA financial planners name charitable giving, business structure and estate plans as the areas of clients’ financial plans they have had to adjust most frequently after passage of the law known as the Tax Cuts and Jobs Act. Planners can tap into their technical expertise to evaluate how different tax strategies would align with a client’s overall financial picture, said Robert Westley, CPA/PFS. Ultimately, the goal is to ensure that plans “support [clients’] life goals and to keep them and their family secure,” said Andrea Millar, CPA/PFS. To read the full article in the Journal of Accountancy, click: How Tax…
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Retirees may face a more complicated tax situation than when they were still working. For example, a portion of their Social Security benefits may be taxed at the federal level if their combined income, which is their adjusted gross income, plus any non-taxable interest and 50% of their benefits, exceeds a certain limit. Their retirement benefits may also be subject to state income taxes. Those who reach the age of 70 1/2 will have to take mandatory distributions from tax-deferred accounts that could boost their taxable income. To read the full article in FinancialPlanning, click: Beware of Hidden Taxes in…
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Don’t Let Clients Fall into This Social Security Tax Trap Social Security recipients may face disproportionately high tax rates because of the way the IRS calculates income with respect to Social Security. So-called combined income includes adjusted gross income as well as tax-free income, half of Social Security income and some add-ons. Paul Norr, certified financial planner with Bucks County Financial Planning Group, discusses how advisers can help clients manage the tax bite in several ways. To read the full article in Financial Planning, click: Social Security: Keeping Exorbitant Tax Rates at Bay.
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There’s a window of opportunity before clients reach age 70 in order to mitigate some of the bite. Paul Norr shares some great tips to prepare your clients for their future years. To read the full article in Financial Planning, click: Avoid the Social Security Tax Trap.
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The Many Tax Benefits of Making Charitable Contributions With IRA Distributions Now that the provision permitting these contributions is permanent, taxpayers can take maximum advantage of this rule, even using life insurance to increase the gift to charity. David K. Smucker, CPA, Advanced Consulting Group director with Nationwide Insurance, explains that the recent legislation making the $100,000 charitable IRA contribution permanent allows taxpayers to take full advantage of the numerous tax benefits of these contributions. To read the full article in The Tax Adviser Tax Insider, click: Charitable IRA Distributions: A Great Opportunity.