Take multiple years of last minute tax law changes, add major sections of the tax code that expire each year only to be extended, and mix in major pre-formulated tax code changes. All this adds up to lots of potential for tax savings, but only if you plan accordingly. This is especially true in the following cases.
You have a child entering college. There are so many different college tax breaks, it is hard to determine which ones might make the most sense for your situation. This includes the American Opportunity Tax Credit, the Lifetime Learning Credit, Tuition and Fees Deduction, Coverdell Plans, 529 Plans, and student loan interest deductibility. | |||||||||||||||||
You wish to explore charitable giving strategies. Consider donating appreciated stock instead of cash. If you are over the age of 70 consider donating directly from a qualified retirement account instead of using after-tax savings. | |||||||||||||||||
Review the now permanent tax provisions. Late 2015 legislation made many popular tax breaks permanent. Do you know what they are and how they may impact you this year? These include an educator $250 expense deduction, sales tax as an itemized deduction alternative, expanded American Opportunity Tax Credit, and an expanded Earned Income Tax Credit. | |||||||||||||||||
Other changes may require a look. In addition to the tax provisions above, certain events may dictate a need for a quick tax review. Key among them are:
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Please call if you wish a review of your tax situation.