The Social Security Administration (SSA) announced last week that the maximum amount of wages in subject to the 6.2% Social Security tax will rise from $127,200 in 2017 to $128,700 in 2018. The SSA also announced that Social Security beneficiaries will get a 2% increase in benefits in 2018. The average retiree will receive an increase of $27 a month.
|Social Security Wage Maximum||$127,200||$128,700|
|Maximum Social Security tax||$7,886.40||$7,979.40|
|401(k) elective deferral||$18,000||$18,500|
|401(k) catch up||$6,000||$6,000|
Is President Donald Trump’s statement earlier this month that “the rich will not be gaining at all with this (proposed tax) plan” true? Will the middle class benefit?
President Trump is looking to overhaul the tax code. He made remarks prior to a September 13 meeting with members from both parties of Congress. The president said he wanted to cut the corporate tax rate from 35 percent to 15 percent and lower individual income taxes.READ MORE
After President Donald Trump issued an Executive Order, the IRS announced that it will not reject tax returns just because a taxpayer has not indicated on the return whether the taxpayer had health insurance, was exempt, or made a shared-responsibility payment under Sec. 5000A of the Patient Protection and Affordable Care Act (PPACA).
I periodically get inquiries from individuals who think they can avoid income taxes because they have a trust. Trusts are often very good tools to protect your assets; but not always a good tool for simple tax planning strategies. Trusts generally have much lower deductions, compressed marginal tax rates, and a much lower threshold for the net investment income tax. Thus, a trust may incur higher income taxes than an individual may pay.READ MORE
The Arizona Department of Revenue announced on January 30, 2017 that it sent out some incorrect 1099-G forms for 2015 taxpayers that received refunds.
The erroneous forms included information from the 2014 tax year, and did not include the correct information from the 2015 tax year.
You can still file your 2016 income tax return – Please use your actual 2015 tax return if your 1099-G document is different.
Medicare is a federal system of health insurance for people over 65 years of age and for certain younger people with disabilities. Medicare pays for much of the cost of hospital stays and doctor’s office visits for people age 65 and older. But what does that mean and what do you need to know?
The Internal Revenue Service has proposed revisions to tuition tax credits and deductions for individual tax payers. The changes are meant to be in alignment with the Protecting Americans from Tax Hikes (PATH).
Key things to know:
In The 7 Habits of Highly Effective People, Dr. Stephen Covey identifies key habits successful people share to achieve their goals. Here is my attempt to drill these habits down for investors.
Habit 1: Be Proactive (Be Ready for Financial Emergencies)
About 47 percent of respondents in the Federal Reserve’s 2014 household survey said they wouldn’t be able to cover an emergency $400 expense without selling something or borrowing money. So start by setting aside money for an emergency fund before saving for retirement. In a financial emergency, too many people tap into their retirement fund early and pay a penalty. (And your credit card is not your emergency savings fund!)
Approximately 13 million Americans were identity fraud victims in 2015— and identity thieves have stolen $112 billion during that same time. This is according to Javelin Strategy and Research.