American Families Plan Would Provide Benefits for Some, More Taxes for Others

The American Families Plan includes $1.8 trillion in proposed investments and tax credits for American families and children over a period of 10 years, as well as tax increases for those who earn more than $400,000 annually. On April 28, 2021, the White House released a fact sheet for President Biden’s American Families Plan (AFP), […]

Enhanced Child Tax Credit for 2021

If you have qualifying children under the age of 18, you may be able to claim a child tax credit. (You may also be able to claim a partial credit for certain other dependents who are not qualifying children.) The American Rescue Plan Act of 2021 makes substantial, temporary improvements to the child tax credit […]

How Much Annual Income Can Your Retirement Portfolio Provide?

More ways to help stretch your savings Don’t overspend early in your retirement Plan IRA distributions so you can preserve tax-deferred growth as long as possible Postpone taking Social Security benefits to increase payments Adjust your asset allocation Adjust your annual budget during years when returns are low Tax considerations Prolonging your savings may require […]

Common Factors Affecting Retirement Income

When it comes to planning for your retirement income, it’s easy to overlook some of the common factors that can affect how much you’ll have available to spend. If you don’t consider how your retirement income can be impacted by investment risk, inflation risk, catastrophic illness or long-term care, and taxes, you may not be […]

Due Date for Federal Income Tax Returns and Payments Postponed to May 17

Tax deadline for most individuals: Monday, May 17, 2021 Due to the unusual conditions related to the coronavirus pandemic, the due date for individuals to file 2020 federal income tax returns and make tax payments has been postponed by the IRS from Thursday, April 15, 2021, to Monday, May 17, 2021. No interest, penalties, or […]

Gift and Estate Taxes

If you give away money or property during your life, those transfers may be subject to federal gift and estate tax and perhaps state gift tax. The money and property you own when you die (i.e., your estate) may also be subject to federal gift and estate tax and some form of state death tax. […]

There’s Still Time to Contribute to an IRA for 2020

Making a last-minute contribution to an IRA may help you reduce your 2020 tax bill. If you qualify, your traditional IRA contribution may be tax deductible. And if you had low to moderate income and meet eligibility requirements, you may also be able to claim the Saver’s Credit for 2020 based on your contributions to […]

Pandemic Relief Measures and Your Tax Return

Last year was unpredictable, and your financial situation may have been far from normal Two emergency relief bills passed in 2020 in response to the COVID-19 pandemic will make this an unusual tax season for many taxpayers. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March, and a second relief package […]

IRA and Retirement Plan Limits for 2021

Many IRA and retirement plan limits are indexed for inflation each year. While some of the limits remain unchanged for 2021, other key numbers have increased. IRA contribution limits The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2021 is $6,000 (or 100% of your earned income, if less), […]

Tax Planning for Income

1. Postpone your income to minimize your current income tax liability By deferring (postponing) income to a later year, you may be able to minimize your current income tax liability and invest the money that you’d otherwise use to pay income taxes. And when you eventually report the income, it’s possible that you’ll be in […]