Understanding tax strategies and managing your tax bill should be part of any sound financial approach. Some taxes can be deferred, and others can be managed through tax-efficient investing. With careful and consistent preparation, you may be able to manage the impact of taxes on your financial efforts.
“Dirty Dozen” Tax Scams to Watch for
Every year the Internal Revenue Service (IRS) releases its list of tax scams, spotlighting the myriad ways that people try to separate you from your money.¹ The 2016 “Dirty Dozen” Identity Theft Using your personal information, an identity thief can file a fraudulent tax return and claim a refund. If you’ve been a victim of
Tax Calendar
Key dates from the federal tax calendar. January 31 Employers must send out W-2 Forms and 1099 Forms to employees and non-employees who provide services. February 15 If you claimed exemption from income tax withholding on the W-4 Form you gave your employer last year, you must file a new Form W-4 by this date
Tax Rates
Find your federal marginal income tax rate, (for the 2018 tax year). Married Filing Jointly Over Not Over Rate $0 $19,050 10% $19,051 $77,400 12% $77,401 $165,000 22% $165,001 $315,000 24% $315,001 $400,000 32% $400,000 $600,000 35% $600,001 37% Married Filing Separately Over Not Over Rate $0 $9,525 10% $9,526 $38,700 12% $38,701 $82,500 22%
Understanding Marginal Income Tax Brackets
By any measure, the tax code is huge. According to Commerce Clearing House’s Standard Federal Tax Reporter it’s up to 74,608 pages in length.¹ And each Monday, the Internal Revenue Service publishes a 20- to 50- page bulletin about various aspects of the tax code.² Tip: High Bracket. In 1944, the highest federal income tax bracket was 94%. It
What Do Your Taxes Pay For?
Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money. Tip: Mid May. If the government had raised taxes enough to cover federal borrowing, we would have had to work until May 10 just to cover the tax bill. Source: FoxNews.com, April 24, 2016 In 2016,
What If You Get Audited?
“Audit” is a word that can strike fear into the hearts of taxpayers. However, the chances of an Internal Revenue Service audit aren’t that high. In 2016, the IRS audited 0.7% of all individual tax returns.¹ And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS says an audit is just
What Is a 1035 Exchange?
According to the most recent information available, Americans have individual life insurance with a total face value of $12 trillion.1 Due to a variety of factors, these individuals may find themselves in circumstances where the specific life insurance policy or annuity contract they own does not suit their needs.2 They may want to exchange products without