Fresh on people’s mind from the April 18th filing deadline, this edition of Advisor Commentary highlights a variety of articles on different tax topics.
Tax planning should be done year-round, not just when you’re gathering documents to put a tax return together.
Most tax planning activities have to be done by December 31st. So, by the time people start gathering documents in January or February, it could be too late to make any significant changes.
This article from Kiplinger focuses not just how proper tax planning can help you this year, but how it can help maximize the amount you save on taxes over your lifetime.
Inflation doesn’t just impact how much you spend at the grocery store. One thing we learned from last year’s scorching hot inflation is that it can have an impact on an individual’s tax situation, perhaps without you even realizing it.
The tax code tries to account for rising prices. In fact, there are 60 provisions the IRS updates annually. This article from MarketWatch talks about how the effect of inflation impacts people’s tax situation differently.
Many high income earners assume that they are phased out of most tax credits, but the Child Tax Credit has a high phaseout limit of $200,000 for single filers and $400,000 for joint filers. Eligible people claiming it will receive $2,000 per child under the age of 17.
This Washington Examiner article looks at the Child Tax Credit and other credits you may be eligible for.
After filing your taxes this year, you may have gotten an unexpected surprise in the form of a tax bill (or even just a small refund). If you’re in this boat, it can be a good idea to review your paycheck withholdings.
When an employee starts a new job, the employer has them fill out a Form W-4. If you experience a life event such as a new marriage, child, or home purchase, you may need to change your withholdings.
From Go Banking Rates, this article discusses how you can use a free IRS withholding estimator to optimize your situation.
Tourism numbers are inching closer to pre-pandemic levels. And while this article doesn’t cover income taxes, it looks at which travel locations charge a tourism tax.
Most cities on the list charge a couple of dollars per night. But cities like New York City and Los Angeles tack on a whopping 14% in tourism tax per night to hotel bills.