Need more time to prepare your tax return?
File your request for a tax extension by April 17 to push your tax deadline back to October 15, 2018.
In 2018, the traditional April 15 Tax Date +2 = April 17.
Thanks to the traditional deadline for filing Individual taxes falling on a Sunday this year, and because of the Emancipation Day Holiday in Washington DC the following day, your deadline for filing 2017 individual is a procrastinating-ly lovely April 17. There have been some incremental tax inflation-adjustments this year, and a slew of significant changes coming for 2018, so if you haven’t filed yet…..
For 2017 taxes, personal and dependent exemptions remain at $4,050, but the standard deduction for single individuals rises to $6,350, for head-of-household to $9,350, and for married filing jointly to $12,700.
The maximum earned income tax credit rises to $6,318.
The maximum upper limit for the earned income tax credit rises to $53,930.
Health Savings Accounts now max out at $3,400 for Individuals. Family HSA limits remain at $6,700. If you’re 55 or older, add $1,000 to those amounts.
Most significantly for large estates, the estate and gift tax exclusion rises to $5.49 Million, a tidy sum indeed.
Because tax rates have dropped, your estimated 2018 quarterly withholding payments will be correspondingly lower as well.
For 2018, keep these coming tax changes in mind!
The standard deductions are nearly doubling across the board. The personal exemption goes away. The top tax rate of 37% kicks in for individual incomes north of $500,000, and $600,000 for married filing jointly. The estate tax exclusion will virtually double from 2017. State and local taxes, as well as mortgage interest deductions will be capped. There will be some minor tinkering with retirement account limits.
As with all matters financial, your details are unique and deserve a discussion with your tax advisor to maximize your potential tax benefit. Anticipatory estate tax planning and structuring is vital!
If you have any questions regarding estate planning or would like to schedule an appointment, please contact the Boyer Law Firm. We would be happy to discuss your most tax-beneficial estate planning options.