Are Charitable Deductions Going To Be Wiped Out Under Trump?

For many American families who prepare for year end tax planning, no discussion is complete without talking about charitable contributions.   Many families make charitable contributions by tithing a percentage of their family income, giving cash to local charities, or they end up taking non-cash items from their household and donating them to a worthy charity.  With the potential shake up in the tax law under a Trump regime, will you have your charitable contributions completely wiped out in 2017? First things first.   You don’t really need to worry about charitable contributions if you don’t itemize your deductions at all.  Today, a single filer has a $6,300 standard deduction and a married couple has $12,600 for a standard deduction. In addition, you get to deduct you, your spouse, and your children as personal exemptions on your tax return.  The suggested policy going forward would be to wipe out the personal exemptions and offer a larger standard deduction of $15,000 for a ...

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IRS Announces Tax Changes For 2013

It’s that time of year where if you haven’t done some year end tax planning, you are sure to be behind the eight ball when it comes to saving as much money as you can with smart overall financial strategies.   Every year about this time, the IRS puts out changes that will affect what happens when the new year begins.   Here are some of the key things that you will want to know especially as you go through open enrollment season and assess your payroll deductions for the year ahead. 401(k)’s The IRS has increased the limitation on the maximum amount you can put away in 401(k), 403(b), and other types of retirement plans from $17,000 to $17,500. Depending on your marginal income tax rate (and where tax rates ultimately settle for 2013), this could save you several hundred dollars just by adjusting your percentage slightly up in your paycheck.  If you are over 50 or turn 50 in 2013, ...

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