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 50-year veteran tax professional Robert D Flach.
you plan to contribute to a traditional or Roth IRA, a Coverdell Education
Savings Account, a Section 529 College Savings Plan, a Health Savings Account,
or an ABLE account for tax year 2017 do it today.
to tax-free compounding, by making your contributions as early as possible each
year, instead of waiting until the deadline, you will have substantially more
funds in the accounts when you are ready to retire, or when you need the money
to pay for education, medical or disability expenses.”
sure, if you are financially able to do so, that you have the maximum amount
set aside in your employer's 401(k), 403(b) or 457 pension plan.And also consider contributing to a ROTH (if
available) or traditional IRA.
2017 maximum contributions for tax-deferred pension plans are:
IRA = $5,500
IRA Catch-Up Contributions at age 50 and older = $1,000
SIMPLE Plan = $12,500
SIMPLE Catch-Up Contributions at age 50 and older = $3,000
401(k), 403(b), 457, and federal Thrift Savings Plan = $18,000
401(k), 403(b), 457, and federal Thrift Savings Plan Catch-Up Contributions at
age 50 and older = $6,000
2017 the AGI phase-out ranges for taxpayers making contributions to a Roth IRA
•$118,000 - $133,000 = Single and Head of
•$186,000 to $196,000 = Married Filing Joint
and Qualifying Widow(er)
•$0 - $10,000 = Married Filing Separate”
The premiere January 2017 issue
contains many more details on “Starting the Year Off Right”.
(2) The deadline for submitting the
4th Quarter federal and/or state estimated tax payment for 2016 is January
17th.Even though the payment
is made in 2017 it is for 2016.However,
if you make your 4th Quarter state tax payment for 2016 in 2017 it
is deductible on your 2017 return and not your 2016 return – if you can itemize
and you elect to deduct state and local income tax instead of state and local
sales tax.Any 4th Quarter
2015 state estimated tax payment made in January of 2016 will be deductible on
your 2016 Schedule A, instead of Jan. 15.
(3) Make one of your 2017
resolutions to become more informed on tax issues.Learn what you can, and cannot, deduct on
your tax return, including the special items that are unique to your trade or
profession, and the rules governing any special situations that apply to you,
and keep up to date on federal and state tax law changes.
Even if you use a tax professional
to prepare your return, the more informed you are on tax matters, the more
prepared you will be when go to your annual appointment.
One way to remain up-to-date on
federal and NJ tax developments is by “subscribing” to THE WANDERING TAX
PRO.Enter your email address in the box
at the top of the right hand margin.Another way is to subscribe to ROBERT D FLACH’S TAX INSIGHTS.
For information on “What’s New in
Taxes for 2017” under current tax law
click here to download my special compilation.
(4) Let me repeat a reminder from fellow tax blogger Russ Fox - "Start Your 2017 Mileage Log Now". Click here to read Russ' excellent advice.
(5) For NJ residents - the New
Jersey Sales and Use Tax will be reduced from 7% to 6.875% on and after January
1, 2017.To be perfectly honest, this
will prove to be a true PITA for individuals, businesses, and accountants and tax
BTW - while you are reading this I am attending my first tax CPE workshop of the year.