The key to a legal and successful reduction in your tax liability is planning. We don’t just comply with tax procedures but we also recommend proactive tax saving measures to maximize your income after tax deductions.
We take it upon ourselves to master the current tax laws, new tax rules and the complicated tax codes by frequently attending tax seminars. Read More
Taxpayers who have a tax deferred retirement plan (e.g., a 401K, 403B, 457B) or an IRA must take a required minimum distribution (RMD) when they reach age 70 ½ which is reported as ordinary income. In the year you become 70 ½, you can defer the first distribution until April 15 of the following year.
Your 2016 taxes may increase because the amount allowed for exemptions is reduced as AGI increases above certain amounts, depending on filing status. You may also have to pay an additional Medicare tax of .9% on wages and an additional 3.8% tax on net investment income (investment income less related expenses) for taxpayers with MAGI (adjusted gross income plus non taxable foreign income). The threshold amount depends on your filing status. If you expect your income to be in these ranges, increase your withholding or 4th quarter estimated tax payment—due by January 15—to avoid the underpayment penalty.
American Opportunity Credit The tax law passed by Congress in December 2015 extended many provisions retroactive to January 1, 2015 and made many of them permanent. Taxpayers who qualify for the deductions and credits but did not take advantage of them on their 2015 return, can file an amended return to use them. They should also be aware of the ones made permanent and use them in preparing future returns.This article discusses the major provisions to help taxpayers save taxes.