While the Tax Cuts and Jobs Act (TCJA) reduced most ordinary-income tax rates for individuals, it didn’t change long-term capital gains rates. They remain at 0%, 15% and 20%.The 0% rate generally applies to taxpayers in the bottom two ordinary-income tax brackets (now 10% and 12%), but you no longer have to be in the […]

The tax impact of the TCJA on estate planningThe massive changes the Tax Cuts and Jobs Act (TCJA) made to income taxes have garnered the most attention. But the new law also made major changes to gift and estate taxes. While the TCJA didn’t repeal these taxes, it did significantly reduce the number of taxpayers […]

Taxpayers who itemize deductions on their tax returns may get a tax benefit by donating money and items to qualified organizations, if they can prove the donations. In one case, the IRS denied some of the charitable deductions claimed by an aerospace engineer and his consultant wife due to inadequate proof, and the U.S. Tax […]

The Social Security “wage base” could increase to $132,300 for 2019. The Social Security Administration’s Office of the Chief Actuary (OCA) is projecting that the wage base will increase from $128,400 for 2018 to $132,300 for 2019. The wage base is the maximum amount of earnings subject to Social Security tax. Although the OCA has […]

The IRS has been told NOT to send debts of those with income less than 250% of the federal poverty level (FPL) to private debt collectors. National Taxpayer Advocate Nina Olson issued a directive ordering the IRS not to assign such cases to outside debt collectors. Olson said she’s concerned people will make tax payments […]

Factor in state and local taxes when deciding where to live in retirementMany Americans relocate to another state when they retire. If you’re thinking about such a move, state and local taxes should factor into your decision.Income, property and sales taxChoosing a state that has no personal income tax may appear to be the best […]

Saving tax on restricted stock awards with the Sec. 83(b) electionToday many employees receive stock-based compensation from their employer as part of their compensation and benefits package. The tax consequences of such compensation can be complex — subject to ordinary-income, capital gains, employment and other taxes. But if you receive restricted stock awards, you might […]

Sending your kids to day camp may provide a tax breakWhen school lets out, kids participate in a wide variety of summer activities. If one of the activities your child is involved with is day camp, you might be eligible for a tax credit!Dollar-for-dollar savingsDay camp (but not overnight camp) is a qualified expense under […]

In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll get for it. But don’t neglect to consider the tax consequences.Home sale gain exclusionThe U.S. […]

Do you need to adjust your withholding?If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan.That’s why a large refund for the previous tax year would […]