There really is still time to do a few things that can alter the way your tax bill looks next year…if you act quickly. USA Today offered “Ten tips to lower your federal income tax bill before 2021 ends“.
Wait on that bonus
If it is possible, ask to get your year-end bonus next year. That way, it is not part of your income this year. We are often told not to pass along potential issues to the future. At the same time, it is also advisable to live in the moment. When it comes to paying less …
One woman looking to snag a deal and make someone happy found what she thought was an Xbox at an incredible price. It turned out that what she thought was a low-priced Xbox game console was actually an Xbox fridge. This novelty item was made and packaged to look like the game console when was actually an appliance to keep food cold.
It’s an amusing story and it made for a great social media post but as one observer quoted in a Yahoo! article wondered, ‘Isn’t this false advertising?” There are cases where things are advertised in a way …Read More
As of the passage of the Tax Cuts and Jobs Act of 2017, recharacterization of a Roth IRA conversion is no longer an option. What can you do to now, to simulate the benefit had by recharacterization of a conversion?
It should be noted that regular contributions to a traditional or Roth IRA can still be recharacterized – it’s only a traditional IRA-to-Roth IRA conversion that is disallowed.
If you recall, the primary reason that you would want to recharacterize is if you converted funds and then, by the time you pay the tax, the holdings that you converted have …Read More