ST. CROIX INSIGHTS
Here are 5 tips to take your 2018 tax season better than 2017
BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
It’s tax season and Uncle Sam comes collecting taxes; again.
- With Trump tax cuts in effect for 2018, know the key areas that impact you.
– Many of us will see some form of income tax deduction as the rates have decreased. That’s good news. With the increase in personal exemptions to $12,000 for individual and $24,000 for married taxpayers, you may not need to file an itemized tax return.
- $10,000 Federal deduction limit for high-income tax states.
– We now have a cap of $10,000 federal tax deduction for state and local taxes. This has an adverse impact on higher wage earners. This provision makes living in an income free tax-free state very appealing. For those of us living in Minnesota or Wisconsin, not so much.
- For those still working – fund Roth 401k and/or Roth IRA accounts.
– Pay now or pay later. It’s just that simple. If you’ve been told you cannot contribute to a Roth account, you’ve been told wrong. There are various rules on how to fund these accounts, but you’ll appreciate that tax-free income when you retire.
- Keep great records – it’s easy to forget and miss deductions.
– Use technology to track your records and numbers. Keep detailed records and receipts so you don’t have to work too hard early in the New Year.
- Schedule a tax-planning meeting with your CPA over the summer months.
– CPA’s want to have tax planning meetings with their clients. They want to have these meetings mid-year to allow for time to make adjustments and make necessary changes as needed
Let’s work on just paying our fair share today and tomorrow. Taking the time now can help you to make strategic money decisions and hopefully keep more money in your checkbook vs. Uncle Sam’s. If you need to add a CPA with a business acumen to your team, I’d be happy to make an introduction.
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