December 22, 2017
With the apparent tax law change coming soon, there are some things to consider before the end of the year. There are too many changes to detail here, so I advise you to research for yourself to see what might pertain to you. I’d like to make a couple of suggestions.
Take a close look at your state income taxes. This applies only to filers that itemize and are not subject to AMT. It might benefit you to pay any state estimated taxes by December 31, 2017. If you typically owe state taxes when you file, consider making an estimated payment before year-end. By doing so, you will get the deduction in 2017 and amounts paid now will not be subject to a cap like they will be in 2018. The standard deduction will likely be about twice the amount it is presently so that has to be taken into account as far as who will itemize on their 2018 Federal returns. 2018 standard deductions are projected to be as follows. Single $12,000, married filing jointly and surviving spouse $24,000, married filing separately $12,000 and head of household $18,000.
Most people will benefit by pulling deductions into this year and pushing income into next year, if possible. Make sure your property taxes are paid by year-end. Make your January mortgage payment in December. Give more to charity such as paying part of next years tithe before the year ends. Make non-cash contributions before year-end. Accelerate business expenses by making necessary purchases in 2017 instead of waiting until next year.
If you have questions, call us on December 27th or 28th. You can also leave a message on the 26th. I can be reached by email at firstname.lastname@example.org.