You may have heard that the Social Security COLA (Cost of Living Adjustment) for 2020 is 1.6%. That means the average American’s SS check will be $1,503 next year (that’s $24 up from last year’s $1,479 avg. check). The maximum SS check for those retiring at Full Retirement Age (FRA) in 2020 will be $3,011. Of course, for those who delay taking benefits after FRA can get 8% per each year of delaying until age 70. There is no advantage … Continue reading

2019 Last-Minute Section 199A Strategies That Reduce Taxes Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review four year-end moves that (a) reduce your income taxes and (b) boost your Section 199A deduction at the same time. First Things First If your taxable income is above $160,700 (or $321,400 on a joint return), then your type of business, wages … Continue reading

                 Tax-Saving Tips October 2019   Roth IRA vs Traditional IRA: Which Is Better for You? Roth IRAs tend to get a lot of hype, and for good reason: because you pay the taxes upfront, your eventual withdrawals (assuming you meet the age and holding-period requirements—more on these below) are completely tax-free. While we like “tax-free” as much as the next person, there are times when a traditional IRA will put more money … Continue reading

C-corp business tax rates had a huge drop with the new tax laws (from a 35% top rate at $50,000 in profits down to a flat 21% rate). BUT… If you operate your business as a pass-through entity, such as a proprietorship, partnership, or S corporation, the profits of that business can generate the Section 199A tax deduction for 2019 (and maybe for 2018?). There are 2 types of business in the eyes of the IRS (regarding this tax rule). … Continue reading

I’ve been preaching for many years how income taxes are going to increase for everyone at some point. How can they not? We’re $22 TRILLION in debt (adding to that debt every year despite a booming economy), Socia Security, Medicare and Medicaid are a mess, etc. But… even if taxes do NOT go up for the nation as a whole, your taxes will likely go up when the inevitable happens! If there is a possibility that you or your spouse … Continue reading