|Congress has passed tax reform that will take effect in 2018, ushering in some of the most significant tax changes in three decades. Here are some of the most important items in the new bill that impact individual taxpayers.|
Because major tax reform like this happens so seldom, it’s worth scheduling a tax planning consultation to ensure you reap the most tax savings possible during 2018.
Happy New Year! Now that tax reform has passed, there are many changes to consider. Some of the major ones are summarized in this newsletter. And as you prepare to file your 2017 return, take note of the advice on avoiding audits. Also included are some tips on locating lost retirement benefits, and some unconventional thinking about New Year’s resolutions.
Should you wish to review your situation please feel free to call. Also feel free to forward this newsletter to someone who may benefit from this information. Have a happy and productive 2018!
Tax Reform in 2018
Best Way to Avoid an Audit: Preparation
|Getting audited by the IRS is no fun. Some taxpayers are selected for random audits every year, but the chances of that happening to you are very small. You are much more likely to fall under the IRS’s gaze if you make one of several common mistakes.|
That means your best chance of avoiding an audit is by doing things right before you file your return this year. Here are some suggestions:
Remember, the average person has a less than 1 percent chance of being audited. If you prepare now, you can narrow your audit chances even further and rest easy after you’ve filed.
Where Did My Retirement Go?
|For one reason or another, you may find yourself in a situation where you’ve lost track of a retirement account like a 401(k) or pension.|
There are several ways this can happen:
|Luckily, there are several handy but little-known ways to retrieve retirement account information:|
Once you’ve located a lost retirement account, you can roll it over into an IRA if it’s yours, or you can take several approaches if it is an inherited asset. Reach out if you’d like to discuss your options regarding tax-advantaged retirement accounts.
A Better Alternative to New Year’s Resolutions
|If you’re like most people, you’ve adopted a set of New Year’s resolutions for 2018. Things like losing weight, quitting smoking or drinking, saving a certain amount of money and finding a new job are among the most common resolutions.|
Also, if you’re like most people, you won’t keep them. Sociological research has shown only about 10 percent of resolutions are maintained more than a few months. Rather than setting resolutions for yourself this year, try this approach instead: adopt new habits.
Here’s why habits can be more useful than resolutions:
With a focus on habits, you no longer get hung up on the goal line. Why not consider changing a habit or two? Perhaps the true feeling of success is practicing a positive habit over and over again, with no end in sight to the satisfaction it brings.
Mileage Rates for 2018
|The IRS recently announced mileage rates to be used for travel in 2018. The standard business mileage rate increased by 1 cent to 54.5 cents per mile. The medical and moving mileage rates also increased by 1 cent to 18 cents per mile. Charitable mileage rates remained unchanged at 14 cents per mile.|
Here are 2017 rates for your reference as well.
Remember to properly document your mileage to receive full credit for your miles driven.