Tax Rates & Retirement Contribution Limits for Individuals & Married Filers in 2019

As we begin gathering up tax documents in anticipation of filing 2018 tax returns, it is also a good time to look ahead to our expected tax liability for 2019. Now is the perfect time to make any adjustments to withholding rates or retirement contributions for this year.

Each year, the IRS adjusts tax brackets to account for inflation. The following brackets took effect on January 1, 2019.

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New U.S. Tax Law – New Tax Rates for Businesses in 2018

The Tax Cuts and Jobs Act (TCJA) passed in December 2017 created sweeping new tax law changes. This article is about businesses and entities. For more information about changes to individual and family income taxation in 2018, see this article.

The following rates took effect January 1, 2018. Read the rest of this entry »

New U.S. Tax Law – Options to Consider in the Final Days of 2017

A sweeping new tax law has just passed in the final days of 2017. Given the swift passage of this legislation so close to year-end, taxpayers have been left with limited time to respond proactively. Nonetheless, below are some last-minute options you may have for reducing your taxes due for 2017 (for tax returns prepared in 2018 for tax year 2017). Learn more about this new, December 2017 U.S. tax law that takes effect January 1, 2018 here.

Taking action in this final week of December, 2017 may be helpful for three reasons: 1) itemized deductions will be limited beginning in 2018, 2) tax rates are generally higher in 2017, rendering deductions more valuable in tax year 2017, and 3) ‘lumping’ itemized deductions, such as charitable contributions, together every few years may become more common under the new tax rules given the higher standard deduction and limitations to itemized deductions. Read the rest of this entry »

Same-Sex Couples May Now File Joint Income Tax Returns

The U.S. Department of Treasury and Internal Revenue Service have just established that several key income tax benefits previously only available to opposite-sex marriages are now available to those in a same-sex marriages as well.

Under the announcement (U.S. Treasury) and the rule (IRS), benefits now available include the ability to file a joint income tax return (which may cut your tax cost), but also increase the tax-free part of a couple’s estate for transfer to heirs (double an individual’s lifetime limit). Additionally, all the same income tax benefits that may come from filing a household income tax return are available, including deductions, exemptions and credits. Read the rest of this entry »