Article Highlights: Parents Attempting to Shift Income to ChildrenKiddie TaxTax Reform ChangesTax on Child’s Unearned Income Tax on Child’s Earned Income Some years back, it was not uncommon for parents to put their investments in their dependent children’s names to take advantage of their children’s lower tax rates. Although the Uniform Gift to Minors Act legally made a … [Read more...] about Kiddie Tax No Longer Based on Parents’ Tax Rate
IRA Missteps to Avoid
Article Highlights: Selecting a Type of IRAMissing out on the Saver’s CreditTaking Distributions before Retirement AgeFailure to Keep Designated Beneficiaries CurrentOverlooking the Spousal IRAFailing to Recognize Low Tax Distribution OpportunitiesSocial Security Income and Traditional IRA DistributionsRollover ErrorsFailing to Take a Required Minimum DistributionKnowing … [Read more...] about IRA Missteps to Avoid
Do You Need to Renew Your ITIN?
Article Highlights: Over 2 Million ITINs Require RenewalFailure to Renew Can Affect Tax Filings and Refunds in 2019W-7Family Renewal OptionThree Ways to RenewAvoiding Common Mistakes The IRS has announced that more than 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2018. An ITIN is a nine-digit … [Read more...] about Do You Need to Renew Your ITIN?
Tax Reform Eases the Alternative Minimum Tax –But It’s Still There
Article Highlights: What Is AMT?AMT TriggersMedical DeductionsDeduction for Taxes PaidHome Mortgage InterestMiscellaneous Itemized DeductionsPersonal ExemptionsStandard DeductionIncentive Stock Options Although Congress has been promising to repeal the alternative minimum tax (AMT), they failed to do that when they passed tax reform in 2017. Instead, they lessened … [Read more...] about Tax Reform Eases the Alternative Minimum Tax –But It’s Still There
Tax Reform 2.0 Is in the Works
Article Highlights: Tax Reform 2.0House Ways and Means CommitteeTalking PointsPrognosis The dust has not yet settled from the Tax Cuts and Jobs Act (TCJA), passed into law in December 2017, and the House Ways and Means Committee is already considering another round of tax changes. The committee chair, Kevin Brady, Republican from Texas, wants to include input from … [Read more...] about Tax Reform 2.0 Is in the Works