For years, we have been advising clients about the benefits of the ‘Backdoor Roth’ strategy. Lack of IRS guidance had clouded the issue with many. Congress has finally put it’s finger on the scale with a few footnotes in the recent Tax Reform Bill.
Posts in category Tax Updates
Tax reform has both added and removed tax reduction opportunities for businesses in 2018. While the resulting tax code writing and interpretation will go on for quite some time, it is never too early to bounce the changes off of how you operate your business.
Check out our Special Edition Newsletter for some details.
Increased Illinois tax withholdings!
The Illinois state legislature has recently enacted several ways for all of us to help with its fiscal problems – in the form of new tax law associated with the recent budget.
For your enjoyment….
– individual tax rate increase from 3.75% to 4.95%
– corporation tax rate increase from 5.25% to 7.00%
– limits to some deductions and credits for high income taxpayers
There were some taxpayer friendly provisions…
– New credit for teacher expenses
– Increased credit for K – 12 tuition
– Increased Earned Income Tax Credit
Wage earners will notice more withholding starting in July. Those making estimated payments on the state level may need to adjust those amounts.
Give us a call if you you have any questions or would just like to participate with us in the time-honored tradition of complaining about taxes.
Matters of the heart and tax matters normally need to be considered separately. That being said, it is good to be armed with the facts. The term ‘Marriage Penalty’ is thrown around a lot but this article breaks it down with some humor added for good measure. Taxes and humor…. who knew?
Dependent? It Depends…
It is pretty well known that parents can take their children as dependents while they are in college. What about after college if they take a while to get started? What about parents that you support? Here is a good article on point: Who can be a dependent? As always, give us a call if you need more on this.
Tax Scams, Security, and what WE are doing about it
We have touched on this topic before but scammers are continuing to evolve. We still hate these guys.
The IRS recently finished a Security Summit. The takeaways?
• Scammers will still use aggressive and threatening phone calls but there has been a significant uptick in email Phishing and Malware
• Scammers creatively focus on new or confusing tax laws
• Scammers frequently go after elderly taxpayers
• Scammers are now targeting tax preparers
This last one is important and we take it seriously. At Fox Valley Tax Solutions we have implemented an Information Security Plan recommended by the IRS to ensure we are doing our part to safeguard Taxpayer Data. Not all tax preparers are up to speed on this!
Did we mention we hate these guys?
Source: Tax Scams/Consumer Alerts