End of the year Tax Tips

vero beach cpa, tax advice, tax prep, payroll

With the end of the year, all new questions and concerns about filing your income taxes arise.  Now is the time to start thinking about last minute adjustments that need to be enacted now to make your filing even easier.  DiSalvo and Company is here to help with your end of year planning and to get you ready for next year.

According to Accounting Today here are several tax tips that will benefit individuals this year.

“First – what’s not changing: While President-elect Trump is in a strong position to enact his promise of lower tax brackets next year, it’s important to remember that the current income tax rates of 10, 15, 25, 33, 35 and 39.6 percent are still in effect for the tax returns being filed next mid-April. The standard deduction amounts remain $6,300 single/married filing separately, and $12,600 for married filing jointly. The standard deduction for heads of households, however, rises to $9,300.

Deferring income: If the president-elect does manage to lower and simplify the individual tax brackets per his plan, that means rates next year will be lower, so it might be worth it for individuals to consider deferring some income into 2017. That may mean getting a bonus in January, instead of December, or waiting to redeem a savings bond, or putting off debt forgiveness income.

New permanent incentives for individuals: The PATH Act of 2015 made a number of tax incentives permanent. For individuals, these include:

  • The American Opportunity Tax Credit;
  • The teachers’ $250 classroom expense deduction;
  • The ability to deduct state and local sales tax instead of state income taxes;
  • The exclusion for direct charitable donation of up to $100,000 from an IRA; and,
  • The 100 percent gain exclusion on qualified small-business stock.”

If this all sounds a bit overwhelming, not to fear, DiSalvo and company are here to help with any and all of your Tax questions. We keep up with the latest in Tax rules so that you don’t have to worry about anything but your own business, so give us a call.

Pete DiSalvo

Vero Beach Certified Public Accountant

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