We’ve reviewed our stats and based on our most read Tax Tips from this past year, we’ve compiled a list of our Top 10 Tax Tips of 2019.
1. Take Advantage of the Gift Tax Exclusion Rules
With the annual federal gift tax exclusion, you can transfer substantial amounts free of gift taxes to your children and others.
2. Thinking About Moving to Another State in Retirement? Don’t Forget About Taxes
Many people dream of retiring to another state to take advantage of warm weather or to be close to loved ones. Before you call the moving truck, consider the impact of state and local taxes.
3. Hire Your Children This Summer: Everyone Wins
Are you a business owner with teenage or college-age children who constantly need money? Make them earn the money by hiring them. You can save taxes and reap other benefits.
4. Still Working After Age 70½? You May Not Have to Begin 401(k) Withdrawals
Are you still working after age 70½ and don’t want to take required minimum distributions from your 401(k) account? You might not have to.
5. Selling Your Home? Consider These Tax Implications
Are you selling your principal residence? You may be able to exclude up to $250,000 ($500,000 for married joint filers) of gain.
6. Uncle Sam May Provide Relief from College Costs on Your Tax Return
Want to offset the high cost of college? There may be a federal tax credit for higher education costs that you can claim.
7. Using Your 401(k) Plan to Save This Year and Next
Have you been contributing enough in 2019 to your employer’s 401(k) plan or Roth 401(k)? Here are the contribution limits for this year and for 2020.
8. Taking Distributions from Your Traditional IRA
Knowing the fine points of the IRA distribution rules can make a significant difference in how much you and your family will get to keep after taxes.
9. Three Questions You May Have After You File Your Return
Once your tax return has been successfully filed with the IRS, you may still have some questions. Here are brief answers to three questions that we’re frequently asked at this time of year.
10. Holiday Parties and Gifts Can Help Show Your Appreciation and Provide Tax Breaks
Your business may want to show its gratitude to employees and customers by giving them gifts or hosting parties. It’s a good idea to understand the tax rules involved. Are they tax deductible by your business and taxable to the recipients?
You can anticipate more insightful tax tips from HMWC in 2020. If you have any individual or business tax questions or concerns, be sure to contact us.