As we gear up for the fourth quarter, we’re getting closer to the first tax season with the new tax law in effect. Since the introduction of the Tax Cuts and Jobs Act last December, more guidance has been released on certain aspects of the tax reform that were previously vague or unclear. What should be perfectly clear, however, is that tax planning should not wait another minute.
Following are 5 tax planning considerations:
Update Your Form W-4.With new tax rates comes new withholding tables. Associate Partner Julie Strohlein, CPA authored an article on our website, “Yet Another Version of Form W-4,” that walks you through the purpose and process of updating your Form W-4 in order to minimize tax surprises in 2019.
The personal exemptions are gone, itemized deductions are less likely to exceed standard deductions, and the child tax credit is increased. These updates require a fresh look to see what you can still take advantage of to maximize your available deductions.
Newlyweds in 2018 may benefit from the new married filing jointly rates, but other areas could be a penalty depending on your situation. For divorcing couples, alimony is no longer deductible for agreements in 2019, so be cognizant of settlement timing.
The 20% pass-through deduction is complicated and depends on a variety of factors, including wages and industry. Speak with one of our tax specialists or view our online flowchart to help determine if you qualify.
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A trusted tax or financial advisor knows all of the new changes and expiring breaks. They are aware of traditional tax planning strategies as well as the opportunities under the new law.
Alloy Silverstein is here to guide you and help you feel confident during a time of change. There are many variables that determine whether you come out ahead or behind and a tax planning session can help you figure it all out. If you haven’t set up a planning meeting yet, call us this Fall.
In addition, Alloy Silverstein’s CPAs are available for private or public speaking opportunities to provide clarification to the new law.
Contact Adrienne Dell’Olio or Angela Venti for availability and more details.
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