Tax reform was passed by Congress this week and is expected to be signed into law soon. Most of the new laws take place in the 2018 and 2019 tax years, but there are a couple items that you need to know about right away for your 2017 taxes.
Don't ignore your opportunity to save on taxes just because it's summertime. Here are some summertime tips to keep your tax plans going.
If you are a sole proprietor with children, you might consider putting them on the payroll during the summer months. Wages paid to your children under age 18 are not subject to social security and Medicare taxes. What's more, their earnings are not subject to federal unemployment tax until they turn 21.
If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The second quarter due date is now here.
Normal due date: Monday, June 15th 2015
Remember you are required to withhold at least 90% of your current tax obligation or 100% of last year’s federal tax obligation.* A quick look at last year’s tax return and a projection of this year’s obligation can help determine if a payment might be necessary. Here are some other things to consider:
With summer vacations and warm weather just around the corner, tax planning may not be a priority on your agenda. The problem is that if you wait until December, you cut the time for planning strategies to take effect. But if you take the time to plan now, you still have eight months for your actions to make a difference on your 2015 tax return.
Remember the Nanny Tax - Do you have a household employee?
Word of the Year - Are you current with the New English?
The Extension that Never Ends
The Month of December:
Take final year-end actions: • Gifts • Capital gains/losses • Charitable giving • Dividend income December 24th: Last day of Chanukah December 25th: Christmas Day December 26th: Kwanzaa Begins January 15th: 4th Quarter Estimated Payments Due
Take some time to review your tax situation for 2014 while there are still a few months to make tax-cutting adjustments. With more of the Affordable Care Act going into effect for 2014, both individuals and businesses will find that an investment in a year-end review could make a significant difference in their final tax bill.