Increases 401K Contribution limits by $500 from January 1st 2018 What this means for you.
The IRS had
announced sometime in October, that effective from January 1 2018,
the contribution limit for Employees who participate in 401(k), 403(b), most
457 plans and the Federal Government’s Thrift Savings Plan will be increased
from $18,000 to $18,500.
surely a Big Deal. As we all know, this extra $500 can help us more than we may
think and it could also mean up to $70,000 more in your retirement account,
assuming you decide a retirement age of 67 for yourself and at a 6 percent
annual rate of return.
We have only Few Days left to the end of Tax Season; Many of Our Clients ask if a Tax Credit is better than a Deduction. Just to enlighten us, A Tax Credit is a Dollar -For-Dollar Reduction of the Taxes you owe; For instance, A $100 Credit means you pay $100 less in Taxes.
A Deduction reduces the Taxes, you owe by a Percent of every Dollar, you're allowed to deduct. You Calculate the worth of your Deduction by multiplying your marginal (Or Top) Tax Rate by the amount of the deduction.
It's unbelievable to hear that People forget to claim the expenses incurred on their Credit Card during their Tax Filing; We have noticed that many Business Owners neglect to include their Credit Card Activities, which qualify for Business Deductions. This is due to Ignorance and lack of knowledge in knowing how to input this in their Accounting Software.
Don't be left out. Do the Right Thing. Don't leave out money on the Table. Claim your Deductions and you will be better off for it.
The IRS will begin accepting 2016 Returns and processing Paper Ones on January 23,2017. The Closer you are to the front of the line, the safer your refund will be. So What Do you Need to Do?
*Start collecting your Tax information- Your W-2s, Mortgage Interest Statements and 1099s as soon as it begins arriving in the Mail.
* Pull Together Receipts and Other Information on your itemized deductions as soon as possible.
* Once you have everything you need, Schedule Time with your Accountant, Bookkeeper, Enrolled Agent or Tax Preparer.