Life...And How it Changes Your Taxes
Take a look through your photo album. You are sure to find photos from holidays, weddings, births and other simchas that bring nothing but happiness. Now, look at your old tax returns. Probably not so nostalgic, right?
But remember: As your life changes, so will the way you prepare your taxes. Money magazine lists six life milestones that make a drastic impact:
- Marriage – One of the first decisions of the happy nuptials is whether to file taxes jointly or separately.
- Buying a House – Owning a home will offer many opportunities for deductions, as well as many trips to Home Depot.
It’s common for us to believe it’s the things beyond our control – layoffs, market downturns, big unanticipated expenses – that weaken our planning efforts and make a secure retirement such a challenge. The truth is we often inflict most of the damage on our own by making ourselves believe we’re making reasonable decisions when we’re not.
Here are four lies we tell ourselves that will hurt us in retirement:
- “I can’t afford to save now, but I’ll be sure to get serious in the future.” It’ll take longer than you think; you’re best bet is to start saving as soon as possible.
The Internal Revenue Service issued a warning to taxpayers about the bogus phone calls from IRS impersonators demanding payment for a non-existent tax, the “Federal Student Tax.”
Even though the tax deadline has come and gone, scammers continue to use varied strategies to trick people, in this case, students. In the newest twist, they try to convince people to wire money immediately to the scammer. If the victim does not fall quickly enough for this fake “federal student tax,” the scammer threatens to report the student to the police.
If you want to improve your retirement, look into how you can get more benefits from Social Security. It’s a significant retirement income generator for most of us.
According to the Social Security Administration (SSA), the majority of elderly beneficiaries get 50 percent or more of their income from Social Security, while 22 percent of married elderly beneficiaries and 47 percent of unmarried ones get fully 90 percent or more of their income from it.
Aruba, one of the most attractive and visited countries, also has the highest taxes. There’s a 28 percent corporate tax, a 7 percent minimum individual tax and a 58.95 percent maximum individual tax. There’s also sales tax and plenty of other taxes. For this kind of money, you’d better really love palm trees.
- 10 – Employers: Employees are required to report to you tips of $20 or more earned during May.
- 15 – Individuals living outside the U.S.: File Form 1040. For automatic 4-month extension file form 4868 and deposit estimated tax.
- 15 – Pay the second installment of 2016 installment of your 2016 – use Form 1040-ES.
Tax Season is Over. What Now?
We have successfully gotten through yet another tax season. We can finally exhale. So, what now?
TaxRevo brings a wide array of financial acumen to the table, and can advise our clients in many ways that go beyond traditional tax preparation. From tax strategies to small business consulting, TaxRevo is what you need to take your business to the next level.
Some taxpayers may have been relieved that they had three extra days to file their taxes this year.
Even more great news for you procrastinators: with April 15 falling on a weekend for the next two years and yet another Emancipation Day conflict during that time, it will be 2019 the next time Tax Day takes place on the “traditional” deadline of April 15.
Despite improvements in customer service this tax season, the IRS still received some backlash from the House Ways and Means Committee. Why? Three members of the committee had firsthand experience with tax fraud.
Americans make many mistakes when it comes to retirement. That includes not saving enough money. A recent GoBankingRates survey found that one in three Americans have saved absolutely nothing for retirement.
And, for those who have done a great job saving money, there are still plenty of mistakes of be made, such as:
- Claiming Social Security too early
- Continuing to work after claiming Social Security