In a recent study by human resources consulting firm Willis Towers Watson, about 25% of American workers said they expect to retire at age 70 or later. But while retiring later in life may not be ideal from your perspective, here are a few late retirement benefits that might change your mind. 1.Your savings will last longer – According to...
Tags: retirement
Category: Taxes
Each year, certain tax figures are adjusted for inflation. While most figures are unchanged versus 2016, there is more than a 7% increase to the maximum earnings subject to social security tax. Take note of these numbers for use in your 2017 planning. The maximum earnings subject to social security tax in 2017 is $127,200. The earnings limit for those...
Tags: 2017 inflation adjustments
Category: Taxes
It’s that time of year when you are getting ready to sort out last year’s financial records and prepare for this year’s recordkeeping. Do you know what you should keep and what can you throw away? Here are some suggestions. Keep records that directly support income or expense items on your tax return. For income, this includes W-2s, 1099s, and...
Tags: record retention
Category: Taxes
Many people think of a “dependent” as a minor child who lives with you. This is true, but it’s important to remember dependents can include parents, other relatives and nonrelatives, and even children who don’t live with you. Exemptions and your taxable income. Each dependent deduction is worth $4,050 on your 2016 and 2017 federal income tax returns. This exemption...
There are a few qualifications that determine if you need Employer Identification Number (EIN) from the IRS: If you operate your business as a corporation or partnership. If you file reports for employment taxes, excise tax, or alcohol, tobacco and firearms. If you have one or more employees. If you have a self-employed retirement plan. If you operate as any...
The IRS has made great strides in protecting taxpayers from identity thieves, but you must still be diligent to protect your information. Identity thieves can steal a taxpayer’s personal information and use it to file a tax return claiming a refund under the taxpayer’s name. Then when the taxpayer actually files a return, the IRS won’t accept it and notifies...
Tags: identify theft
Category: Taxes
In 2017, businesses can expense up to $510,000 of qualified new or used business equipment purchases, with a $2,030,000 annual purchase limit. In addition, new equipment purchased in 2017 may qualify for 50% bonus depreciation. This rate drops to 40% in 2018, so plan your purchasing accordingly. Feel free to contact the office for further information.
Tags: section 179 for 2017
Category: Taxes