Tax Guide Update: 2018 Kiddie Tax Rates

The “kiddie tax” applies to children up to age 18 and could apply to children up to age 23—depending on how much earned income they have and whether or not they are full-time students. In 2017, children with investment income above a certain amount may have had part or all of their investment income taxed…

 

AAII Survey: Readers Predict the Most Impactful Developments in Finance for 2018

Change is a constant in the financial world. New services, products and technologies are always coming to the market. In turn, consumers are confronted with new ways to think about their finances. Some of the trends facing the field of finance this year include: Higher interest rates Tax reform An expanding role of artificial intelligence…

 

AAII Survey: Readers Comment on Early Impact of Tax Cuts and Jobs Act

Late last year, Congress passed the Tax Cuts and Jobs Act (TCJA). While we are in month three of this new tax regime, the impact is being felt by many already. Those living in high-income-tax and high-property-tax states may have prepaid their property taxes to bypass the deduction cap that went into effect in 2018….

 

Tax Guide Update: 2018 Allowable Tax Benefits and Other Tax Items

The 2018 tax information on page 22 of AAII’s Tax Guide has now been updated. This includes allowable tax benefits such as deductions and maximum contributions. Here’s a link to the PDF of this page. Scroll down below the link to read more details about these changes. The changes cover the following: Standard Deduction For…

 

Tax Guide Correction: Medicare Part B Maximum Premium

Medicare.gov posted corrected 2016 income breakpoints for 2018 Medicare Part B monthly premiums. The maximum premium of $428.60 will be paid by those filing joint tax returns whose 2016 modified adjusted gross income (MAGI) is above $320,000 (not $428,000, as originally reported in the AAII Tax Guide). For taxpayers filing as singles, the maximum monthly…

 

Tax Guide Update: 2018 Standard Mileage Deductions Issued

The IRS issued 2018 standard mileage deductions for business, charitable, medical or moving purposes, up from 2017 rates. The final 2017 and 2018 rates are: Standard Mileage Deductions 2017 2018 Business Standard Mileage Rate 53.5 cents 54.5 cents Medical Standard Mileage Rate 17.0 cents 18.0 cents Moving Standard Mileage Rate 17.0 cents 18.0 cents Charitable…

 

AAII Survey: Potential End of Mortgage Interest Deduction Will Not Impact Approach to Real Estate

As tax reform works its way through Congress, many homeowners, including me, are paying close attention to what may happen to the mortgage interest deduction. Once considered untouchable, the tax break is now in potential danger of being revised if not eliminated. The House and Senate plans do not currently eliminate the mortgage interest deduction,…