Category: Personal Finance
Explaining the taxability of professional athletes
Nonresident professional athletes must use the "duty days" method to determine their Michigan income tax obligations. Personal Service Income Income tax is calculated by multiplying the athlete's personal service income by a fraction. The numerator is the total Michigan duty...
SR Client Question: Are concierge medicine expenses FSA-eligible?
Concierge medicine, a highly attentive approach to healthcare, is gaining popularity. Patients pay additional fees for personalized care and enhanced access to their doctors. With fewer patients, doctors are more available for consultations, offering a refreshing alternative to brief appointments...
Tax Reform Planning Series: Take advantage of the new child tax credit
Before the Tax Cuts and Jobs Act (TCJA), the child tax credit was $1,000 per qualifying child, but it was reduced for married couples filing jointly by $50 for every $1,000 (or part of $1,000) by which their Adjusted Gross...
Tax Reform Planning Series: Maximize home mortgage interest deductions
Before the Tax Cuts and Jobs Act (TCJA), taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also,...
Tax Reform Planning Series: New standard deduction versus itemized deductions
For 2018, joint filers can enjoy a standard deduction of $24,000 (versus $12,700 for 2017). The new standard deduction for heads of household is $18,000, and single taxpayers (including married taxpayers filing separately) can claim a standard deduction of $12,000....
Tax Reform Planning Series: Take advantage of lower tax rates and investment gains
Under the Tax Cuts and Jobs Act (TCJA), 2018 ordinary tax rates are generally lower than those for 2017. For example, the top rate has been reduced from 39.6% to 37%. (The remaining six rates are 10%, 12%, 22%, 24%,...
The tax consequences of student loan forgiveness
When it comes to student loan forgiveness, there are four income-based student loan repayment options to choose from. They are: Pay As You Earn (PAYE) Revised Pay As You Earn (REPAYE) Income Based Repayment (IBR) Income Contingent Repayment (ICR)...
How to enhance retirement planning under new tax laws
A recent article from CNBC outlined several ways taxpayers can improve retirement planning under new the tax laws. Here’s an overview: Move to a low-tax state. New caps on state and local tax deductions make retirement in high-tax, blue states...
Should you revisit your decision to capitalize carrying costs?
With the Tax Cuts and Jobs Act taking effect in 2018, it may make sense to revisit your decision to capitalize real estate taxes, mortgage interest and other carrying costs related to investment property. For background, a taxpayer can capitalize...
Guest Author Joseph J. Lezotte, CFP®, AIF®: Is a qualified charitable distribution right for you?
If you’re a charitably-minded individual at an age that requires you to take a required minimum distribution from your IRA and you don’t need the full amount to support you, a qualified charitable distribution (QCD) may be a good option....