With year-end rapidly approaching, it’s time to consider making some moves that will lower your 2021 federal income tax bill — and potentially position you for future tax savings. Unfortunately, tax planning is particularly challenging this year because the tax rules for 2022 aren’t yet certain. In fact, they may not even be certain for […]

By Ryan Wisniewski For many, social security retirement benefits are a significant source of income in retirement, although it is not typically the only source. How much of your social security income is subject to income tax, depends on how much total income you have during the year. Anywhere from 0% to 85% of your […]

You may still have time to significantly reduce this year’s business federal income tax bill even with all the uncertainty about proposed tax law changes. Here are five possible moves to consider — but stay tuned for developments. Congress is currently considering some tax changes.    1. Claim 100% First-Year Bonus Depreciation for Last-Minute Asset Additions […]

Are you feeling generous? Qualified charitable contributions can be rewarded with sizeable tax breaks during the second calendar year of the COVID-19 pandemic. Recent legislation includes the following four temporary tax law changes that are designed to help individuals and businesses that donate to charities through the end of 2021. 1. Deductions for Non-Itemizers In the […]

When you take withdrawals from your traditional IRA, you probably understand they’re taxable. But what does that really mean? Important: Once you reach a certain age, you must start taking required minimum distributions from your traditional IRAs to avoid an expensive tax penalty. Previously, the required beginning date (RBD) was April 1 of the year […]

By: Ryan Wisniewski When it comes time to start saving for college for a child or other beneficiary, other than beginning early, the most important recommendation is to take advantage of what Internal Revenue Code Section 529 has to offer. Internal Revenue Code Section 529 allows savings accounts to be established in which account owners […]

After a one-year hiatus due to the COVID-19 pandemic, owners of qualified retirement plans and IRAs must adhere to the rules for required minimum distributions (RMDs). The RMD rules are tricky and could result in a substantial tax penalty if you’re not careful. For starters, an RMD is the amount you must withdraw from a […]

Connecticut becomes the first state to pass a new law regarding disclosure of salary ranges. Governor Ned Lamont signed into law June 7, 2021, the Act Concerning the Disclosure of Salary Range for a Vacant Position (Act). The Act, which goes into effective October 1, 2021, requires employers to disclose to job applicants and employees […]

Do you own a vacation home? If so and you rent it to third parties, you may be confused about the federal income tax rules that apply. Confusion is especially common if you changed your usage pattern during the pandemic. It may have caused your property to be classified as a personal residence — rather […]