2018

2018 Tax Season Open and IRS Tax Refunds Being Processed (or Not)

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The IRS has officially announced that the 2018 Tax season is now open. This is in line with our earlier published schedule of key 2018 tax filing dates. April 17, 2018 is the tax deadline – excluding extensions and for non-resident filers. With more than 155 million returns to be filed this year (greater than 90% […]

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$500 Non-Child Dependent or Flexible Credit in Trump/GOP Tax Reform Bill

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The now passed GOP/Trump tax bill contains a little known but important $500 credit for non-child dependents – e.g elderly or disabled dependents or children over 17. This credit is to provide some relief to those families who will lose the now defunct personal exemption and are not eligible for the expanded Child Tax Credit (CTC). Both the CTC […]

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Losing the $4,050 Personal Exemption in 2018 But Doubling The Standard Deduction

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As part of the GOP tax reform bill to support President Trump’s tax reform agenda the Personal exemption is being fully eliminated in 2018. The $4,050 personal exemption in 2018 (which was unchanged from 2017) can be taken for yourself, your spouse, and your eligible dependents, will be scrapped. This could mean that single parents or families with […]

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Most Americans Will be Getting a Tax Cut and Larger Take Home Paychecks in 2018

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The latest GOP tax reform bill will affect most Americans when it comes to their 2018 taxes (filed in 2019). While everyone has their own unique financial and tax situations the answer to how the Trump/GOP tax changes will impact American tax payers are driven by these four main factors: How much you earn – your pay […]

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IRS Tax Changes for 2018

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The IRS has released its 2018 tax updates via Notice 2017-64 and revenue procedure 2017-58. Highlights are provided below. Remember these updates are for 2018 taxes filed in 2019. For the upcoming 2017-18 tax year, I have included links (for filings due next year by April 17, 2018) where applicable. Personal Tax Brackets The standard deduction for married […]

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I Like Donald Trump But Will Drop Him Like a Hot Potato if He Raises My Taxes

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The title of this article is from a reader (Barry P.) who had this comment on Trump’s proposed tax reforms: I live in Massachusetts and make $61,000.00 annually. I own a home and pay mortgage interest of around $12,000 dollars. My state income taxes and property taxes amount to another $8,000. So my itemized deduction […]

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Maximum 401k Contribution Limits Up To $55,000 in 2018 – Individual Limits Rise to $18,500

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A lot of people assume the maximum annual contribution to employer sponsored retirement plans like a 401(k), 403(b) or Government Thrift Savings Plan (TSP), are what is published at the individual level. However, this could be very misleading if your employer contribution or match is generous and/or you are a high income earner. In fact […]

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2017 Federal Hiring Freeze That May Lead to 2018 Job Cuts and Federal GS Pay Freeze For Government Workers

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[Update March 2017] President Trump has continued his attack on the federal workforce by announcing across the board funding cuts in his latest budget proposal that could lead to between 100,000 and 200,000 job cuts. This is according to Mark Zandi, chief economist for Moody’s Analytics. This cut would constitute up to 9% of civil servant jobs. On […]

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Trump GOP Tax Plan, Cuts and Changes in 2017, 2018 and Beyond – Latest Updates and Final Bill

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[Latest update]  Republican lawmakers in the House and Senate have now passed a combined tax reform bill along party lines for President Trump’s Tax Reform measures under the Tax Cuts and Jobs Act. See the table below that contrasts changes from earlier versions in each chamber versus what is in the final bill that goes to the […]

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2017 vs 2018 401k, 403b, 457 and TSP Contribution Limits and Catch-up Amounts

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[Updated with the latest 2018 contribution limits] The IRS has released updated employer sponsored retirement plan limits, which covers 401(k), 403(b), 457 and Government Thrift Savings (TSP) plans. The annual contribution limit, which is indexed to inflation increased by $500 in 2018. This means the maximum amount employees will be able to contribute on a pre-tax basis in […]

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