Posts Tagged ‘Married Filing Jointly’


Understanding the New 20% Pass-Through Income Tax Deduction

In December, 2017 President Trump signed the new tax bill.  This is known as the Tax Cuts and Jobs Act (TCJA).  What received a lot of attention in the media was the tax cuts for individuals. For Connecticut taxpayers, check out Four Easy Steps for CT Taxpayers to Plan for Their 2018 Income Tax.

Also, as part of the TCJA, for eligible entities, there is a new 20% Pass-Through Deduction, which is also known as a Section 199A deduction.  … Continue reading »


When to File Separate Tax Returns to Save Money

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Married couples have a choice when they file their income tax returns.  They can file as married filing jointly or as married filing separately.

 

Married Filing Jointly

Most married couples will file a joint income tax return.  There may be little or no tax savings so they choose to file jointly.

 


4 Reasons Everyone Should Contribute to a Roth IRA

1) Tax – Free Distributions

If the Roth IRA account is open for at least 5 years and the taxpayers is over age 59 1/2, then all of the distributions from the Roth IRA are tax-free.

 

2) Take Your Contributions Back at Any Time

Unlike a Regular (or Traditional) IRA, contributions to a Roth IRA are not income tax deductible. Because the contribution is not tax deductible, taxpayers can take back their contributions at any time without any income … Continue reading »


Why The New Medicare Tax May Cost You More Money

Current Medicare Tax

Currently taxpayers pay 1.45% Medicare Tax on their earned income. This is from a W-2 for employees and net-income from self-employed individuals. The employee pays this amount and the employer matches it, therefore they remit 2.9% to the government. A self-employed individual is considered to be both the employer and employee and therefore currently pays 2.9% Medicare Tax.


The Difference Between the FBAR and IRS Form 8938

 

Investors with offshore accounts must be familiar with the filing requirements of the FBAR and IRS Form 8938.

FBAR

Any U.S person with offshore accounts that had more than $10,000 in them any time during the year must file Form TD F 90-22.1, the so-called FBAR (Report of Foreign Bank and Financial Account).  A U.S. person includes individuals, partnerships, corporations and estates and trusts.  This form must be received (not postmarked) by the U.S. Treasury Department by June … Continue reading »