If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wednesday, April 15, 2020, filing date and benefit from the resulting tax savings on your 2019 return.

Congress gives a holiday gift in the form of favorable tax provisions

December 23rd, 2019 by Douglas Freeman

Posted in 401K, AGI (Adjustable Gross Income), IRA, Required Minimum Distributions (RMDs), Retirement, Setting Every Community Up for Retirement Enhancement (SECURE) Act, Tax Credits, Tax Cuts and Job Acts (TCJA)

Tags: Dental Expenses, Further Consolidated Appropriations Act of 2020, Medical Expenses, New Tax Laws, Roth IRA, Taxpayers

Congress just passed a package of tax provisions that will provide savings for some taxpayers. The White House has announced that President Trump

Medical expenses: What it takes to qualify for a tax deduction

December 2nd, 2019 by Douglas Freeman

Posted in AGI (Adjustable Gross Income), Deductions, Disabilities, Federal Income Tax, Flexable Spending Accounts, Health Care, Health Care Insurance, Income Tax, Individual Income Tax, Insurance, Itemized Deduction, Medical Deductions, Nursing Home Deduction, Tax, Tax Deduction, Tax Planning, Tax Savings

Tags: Bunching Medical Expenses, Deductible Medical Expenses, Eyeglasses, Prescription Drugs, Smoking-Cessation Programs, Transportation deduction, Weight-loss Programs

For 2019, the medical expense deduction can only be claimed to the extent your unreimbursed costs exceed 10% of your adjusted gross income (AGI).

Using your 401(k) plan to save this year and next

November 12th, 2019 by Douglas Freeman

Posted in 401 K, AGI (Adjustable Gross Income), Internal Revenue Service (IRS), IRA, Retirement, Roth IRA, Tax Planning, Tax Savings

Tags: Net Investment Income Tax, Tax Advantaged Retirement Account, Tax-Deferred Compounding, Tax-Free, Tax-Free Contributions

Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather than later can have a significant impact on the size of your nest egg at retirement.

IRA charitable donations are an alternative to taxable required distributions

October 30th, 2019 by Douglas Freeman

Posted in AGI (Adjustable Gross Income), Charitable, IRA, Qualified Charitable Distribution (QCD)

Tags: High Income Surcharge, Medical Deductions, Social Security

Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum