THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
“The White House does not plan to release its
own version of a tax reform plan and will instead leave that to the
congressional leadership and the major tax-writing committees, a senior
administration official said Thursday.”
here.Trump could care less about actual
legislation, and, realizing that like health care tax reform is hard, is too
lazy to actually think out sound policy and make detailed proposals. If
legislation is passed he will take undeserved credit for it.If legislation is not passed he will blame
the incompetence of Congress and his Party.
To be perfectly
honest, I am glad that Trump has passed the buck on tax reform.If he were actually involved he would just
fuck it up.If left to Congress there is
can’t do much of anything without a functioning – and intelligent, competent
and mentally stable - President.We certainly do not have one now!
* Many of my
clients always get a big refund.While I
can understand and sympathize with the use of withholding as a form of “forced
savings”, especially considering the pitiful pittance of interest that savings
and money market accounts currently pay, I also understand the wisdom of what
Kay Bell says in “Got a refund? Paid a big tax bill? Time to adjust withholding!” at DON’T MESS WITH TAXES.
“So instead of letting the U.S. Treasury hold
onto your money — emphasis on your — for more than a year (without, by the way,
paying you any interest on it), adjust your withholding so that it comes as
close as possible to what your actual tax liability will be.”
One way to continue
a plan of forced savings is to have the reduction in federal income tax
withholding automatically deposited in a bank or credit union money market
account or used to purchase Savings Bonds – this way the money is never in your
hands.Another good use of the reduction
in withholding is to pay down credit card balances.
“Report Name Changes. Notify the Social
Security Administration (SSA) of any name changes after a divorce. Go to
SSA.gov for more information. The name on a tax return must match SSA records.
A name mismatch can cause problems in the processing of a return and may delay
This advice also
applies if you changed your name due to marriage.