5 Critical Steps To Take Now
- Review your withholding: With an increase in the standard deduction, a new child tax credit and lower tax rates among other tax changes, we recommend recalculating how much is withheld from our your paycheck to see how the numbers compare so you are not surprised at the end of the year.
- Reassess your charitable giving goals for 2018: By planning your charitable contributions now, you may be able to reach enough deductions that it pays to itemize.
- Contribute to your retirement plan: When you contribute to your Roth, traditional IRA(s) or other retirement plan earlier in the year, you are maximizing its potential time for growth. Contribution limits for IRAs for the 2018 tax year are $5,500 generally and $6,500 for those 50 and older. If your workplace offers a traditional or Roth 401(k), consider contributing to it throughout the year through deductions from your paychecks. If the loss or reduction of itemized deductions, such as state income and property tax, will cost you more in taxes, consider making bigger pretax contributions to a traditional 401(k) or IRA to reduce your taxable income now.
- Evaluate itemized deductions: While the new tax code may have increased the standard deduction, it eliminated many itemized deductions. These include a $10,000 cap on the amount of state and local taxes taxpayers can claim, and eliminated many miscellaneous itemized deductions, such as unreimbursed employee expenses and investment fees. To make the most of these recent changes, review your Schedule A, which lists itemized deductions and consult with your tax professional.
- Hire a tax professional: Taxes are complicated, particularly with the wide range of changes to the 2018 tax laws. A skilled tax professional will help you optimize your tax strategy to make the most of your return and can often save you thousands. An experienced tax expert understands how to leverage the ever-changing tax codes to your advantage. When hiring a tax professional, look for a tax pro licensed by the IRS who’s authorized to represent you, if needed.
Knowledge is power.
Take action today to better understand your current tax status and options under the new tax codes. Leverage our expertise to evaluate your 2018 tax situation, take corrective action while there is still time and legally minimize what is owned. For more than thirty years, Ronald A. Muscarella, CPA PA has been one of South Florida’s leading and most respected tax professionals with a reputation for high integrity, unparalleled expertise, caring service and getting results – even in the toughest of cases. Contact Ronald and the Tax Relief CPA today at 954-746-7801 to make the most of your tax situation.
Always Settling for Less.
Ronald A Muscarella, CPA and the Tax Relief Team has helped 1000’s of clients settle their IRS Tax Debt for less than they owed. There is relief for your IRS Tax debt no matter how much you owe. Please contact us today at (954) 746-7801 and put your IRS Tax problems behind you.