| October 23, 2018 | 0 Comments

Much has been stated about all the tax changes for 2018. Now is the time to visit your individual tax concerns. DON”T wait until Dec. 31st. PREPARE NOW. You should have concerns about the new tax law and how it will affect you. Some will be pleasantly surprised; others disappointed. To become one of the pleasantly surprised I advise you to do the following between now and December 1st.

The medical expense deduction floor has been lowered to 7.5% of Adjusted Gross Income for 2018 ONLY for all taxpayers. This means you want to plan for as many medical procedures needed for 2018. Schedule upcoming medical/dental checks to take place in this year (2018) as well as payments for these services and stock up on medical deductible supplies. This makes sense if your total itemized deductions are going to exceed $12,000 per individual/$24,000 for joint filers.

Review flexible spending accounts. Are there items that you can purchase NOW against the plan so that funds are not lost at the plan deadline?

Know the maximum amount you can contribute to your retirement plan and make sure you have complied.

Check your charitable contributions year to date. If the benefit toward your new standard deduction ($12,000 or $24,000) is less; consider making these contributions every other year (bunching) or setting up a donor-advised fund with the agency or making the contribution through your IRA distribution if you need to make a Required Minimum Distribution (RMD) in your plan for 2018.

For those who plan to gift money, the annual gift exclusion has increased to $15,000. per individual for 2018.

As you can see the increase in standard deduction rates forces you to take a look at all your deductions NOW and make the RIGHT moves before year end.

A tax refund or payment will depend upon how you handle your finances between NOW and YEAR END.

There are several changes for the self-employed also. They include generous depreciation rates, increases in Section 179 deduction/expense and a 20% deduction on qualified business income for taxable income below $315,000 (filing jointly) or $157,500 for all other tax payers,

Please call me to set up a time to discuss these changes or other changes that you are concerned about for this year and the years ahead.

Don’t forget to make your last estimated tax payment before December 31st.

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