As we live in a free country, sometimes, Uncle Sam gives us a choice. When it comes to the taxation of retirement accounts, he takes the stance – “Pay Me Now or Pay Me Later”. Back in 1972, Fram Oil Filters used this slogan in a commercial. They claimed someone could pay the premium price for a Fram Oil Filter now, or, pay a mechanic later to fix all the problems caused by using a different oil filter. They eluded that you were going to pay the price either way. [...]
As Americans, we love giving back. In 2017 alone, we shelled out $410.02 billion in charitable donations - accounting for 2.1 percent of the GDP.1 With the 2020 holiday season officially upon us, it’s no surprise that our giving efforts are likely ramping up. And while donating to charities is an integral component of your core values, it can also be an important, strategic play in lowering your tax obligation. This year, charitable contributions can count even more toward lowering tax bills for some. Thanks to the CARES Act, which passed [...]
The tax give-back for parents of young children is different in 2021 Every year, the Child Tax Credit reduces the tax liability of American parents. If it lowers their tax burden below zero, it can even put money in their pockets. The credit's size increased following the Tax Cuts and Jobs Act of 2017. And now, thanks to the American Rescue Plan Act of 2021, it's even bigger—and slightly more complicated—for the 2021 tax year. Here’s what you need to know. Child Tax Credit Basics Before the American Rescue Plan [...]
How a financial advisor can help you manage your taxes this year Reducing your tax burden can help you manage your wealth and free up money to meet your financial goals and build your legacy. But tax rules are complicated, and you may need help understanding all the methods you can use to minimize your tax burden. Your financial advisor is one resource you can tap to help you develop strategies that fit your plan and reduce your tax exposure in 2021. Here are four ways they may be able [...]
Charitable giving is a great way to support the causes you care about while also getting a tax break. In 2020, Congress passed the Coronavirus Aid Relief and Economic Security (CARES) Act, which incentivized charitable giving by offering new rules for charitable deductions. As we move into the new year, now is the time to make sure you’re making your 2020 deductions properly and planning for your 2021 charitable giving. Here’s a look at what you need to know. 2020 Tax Moves The CARES Act temporarily changed some of the [...]