Tax Planning

2016 tax planning is “good news”. It is simple compared to other years with December tax law changes and despite this good news, tax laws remain staggeringly complicated. For 2016, the top federal income tax rate is 39.6% plus higher income individuals could also be hit by a 0.9% and 3.8% taxes. In a short sentence, defer any income to 2017 you can and accelerate deductions like charging on your credit card before year-end to get that deduction. Check out the standard deduction, can you bunch tax or charity payments to allow you to itemize?

If you are age 70 ½, consider giving your RMD (required minimum distribution) to your church or charity directly and not pay income tax and full fill your obligation to the charity. The QCD (qualified charitable distribution) are federal income tax free to you. This will reduce your AGI.

Questions? Please email or call me.