Tip Category: Planning
Tax Planning Weekly Tax Tip for Honolulu Individuals & Business Owners
Now is the tax planning season. Those that treat tax filing as an event and not a process often are the ones paying more than they need. So how do you go about moving from the event to planning? By looking at triggers that should stimulate a discussion. Here are some of the more common:
You Owed Tax Last Year
Having a surprising tax bill is never fun. So if you owed taxes last year, project your current year obligation with a little planning if you have not already done so.
Your Household Income is Over $150,000 Single and $200,000 Joint
As your income grows, so does your tax bill. This occurs because tax rates increase, and tax benefits phase out. This includes things like; lower child tax credit amounts, increases in capital gains tax rates, higher income tax rates, medicare surtaxes plus more.
You are Getting Married or Divorced
The tax penalty for being married is higher than ever. Are you prepared? And if going through a divorce, not all assets are treated the same in the eyes of the IRS.
You Have Kids Attending College in the Next Few Years
There are a number of tax programs that can help, you may wish to review your options and their impact on your tax return.
You Have a Small Business
There are depreciation benefits, qualified business deductions, and numerous small business tax credits to consider. A review is especially important if you have a business that is a flow through entity like Sub Chapter S, partnership or sole proprietor as these entities are taxed on your personal tax return.
You Plan on Selling Investments
Capital Gains tax rates can now range from 0% to 37% (or even higher with the Net Investment Tax).
There are Changes in Your Employer Provided Benefits
These changes could impact your taxable income this year. It is especially important if you are provided with high deductible insurance options.
You Buy a Home, Sell One, or Go Through Home Foreclosure
There are great tax benefits within your home, but only if you know about them and plan accordingly.
You Have Major Medical Expenses
It is harder than ever to itemize deductions, but one way it's possible to itemize is if you have a major medical expense. When this happens it is time to review ALL itemized deductions to minimize your taxes.
You Recently Lost or Changed Jobs
Understanding the tax impact of unemployment benefits is crucial.
You Have Not Conducted a Tax Withholding Review
To avoid under withholding penalties, you need to ensure your withholdings are sufficient.
Your Estate Has Not Been Reviewed in the Past 12 Months
Recently passed estate laws and potential changes in these rules make an annual review a must.
If any of these triggers apply to you, please schedule a tax planning appointment.
Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.
Tax Planning Weekly Tax Tip from Diamond Head Tax Group
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