Trump vs. Clinton Tax Plans

While the election is kicking into high gear, there may be many reasons why you may choose one candidate over the other.  Or, you just may choose to vote for one of the independents this year.   Since I write a column mostly about smart money moves, it might be in the best interest of your family to understand the basics of what the candidates are proposing for tax overhaul and reform.  Here is the high level of Trump v. Clinton for income taxes. PERSONAL INCOME TAX Trump is proposing we move to four tax brackets 0%, 10%, 20%, 25%. More importantly, he is wanting to make the standard deduction for single people at $25,000 and for married couples $50,000 which means those families will pay no tax at all. Clinton is going to hold the same general similar tax bracket structure we have in today’s world. However, she is looking to make two major changes: one being a 4% surtax ...

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Be a Tax Pro! Part II: 5 MORE ways to cut your 2011 personal income taxes

Here are 5 MORE ways to cut your 2011 personal income taxes like a tax pro: 1. Homeowners – accelerate your tax deductible expenses.  Pay your January 2012 mortgage payment and property taxes before December 31, 2011.  You can write off the interest and taxes in 2011.    2.Take advantage of the 0% tax rate on long-term capital gains and dividends.  If you can keep yourself below the 25% income tax bracket, the profits on assets owned for more than a year and dividends are tax free. 3. Use tax credits to mitigate state income tax liabilities.  There are various tax credits that can be used to avoid some or all state income tax.  Some can be generated by a business, some can be purchased, and some are based on taking an action that is supported by the government.  4.Pay your state income taxes early.  Estimate your state income tax liability to the best of your ability and pay it on ...

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Georgia Private School Tax Credit 2011

A HIDDEN GEORGIA TAX CREDIT YOU DON’T WANT TO MISS FOR 2011! Tax write-off.  Tax credit.  Heard these terms before?  Most people have.  The problem is, tax professionals and non-tax professionals alike tend to throw them around as if they mean the same thing.  They do not mean the same thing. Tax write-offs (sometimes called “deductions”) refer to items that can decrease your taxable income, which is the number that the government will use to calculate your tax bill (using the tax rate percentages).  By comparison, a tax credit means something much different.  It is an amount that actually reduces your tax owed.  For example, let’s look at someone with $100,000 in taxable income (at a 30% tax rate) and the difference between a $2,500 tax deduction and a $2,500 tax credit. Tax Deduction:       Tax Credit: $100,000 taxable income $100,000  taxable income        30% tax rate        30% tax rate $30,000 taxes due $30,000 taxes due –2,500tax credit $27,500 adjusted taxes due $100,000 ...

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Consequences of Unfiled Taxes and What to Do Now

Despite common belief, filing unfiled tax returns regardless of how many years have passed is not as scary as it may sound. Do not be deterred from doing so even if you do not currently have the funds to pay for the taxes. In fact, not filing your taxes at all can often have greater penalties and be more detrimental to your financial situation than being unable to pay. Ultimately, the faster you file your taxes the better. In this case the phrase, ‘better now than never,’ could not reign more true. Penalties for Unfiled Tax Returns While many people avoid filing their tax returns because they are unable to fulfill the payments, the penalties and added fees are far worse for not filing at all versus being unable to pay. In best case scenarios, you may even be due a refund without realizing. Keep in mind, the IRS will no longer honor this after a certain period of time. ...

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Health Insurance- Where are we headed?

There has been a ton of press over the past few months regarding health insurance. Democrats slamming Republicans, and Republicans slamming back Democrats. I too have a political party. The party of the small business owner. We take all of our cash, put a business plan together, and work 70 to 80 hours per week creating the dream of building something that will live beyond our lifetime. However, with all that has gone on over the past year, where is the small business owner to turn when the policies from Washington, D.C. come to fruition. ...

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