It seems like it can’t be possible, but the 2020 tax season is already in full swing, with the April 15th Tax Day fast approaching. As a result of the pandemic and resulting government response, several things are different for 2020 taxes relative to prior years. Read more
One aspect of the new tax bill passed in late 2017, is a much higher standard deduction of $12,000 for singles and $24,000 for couples filing jointly. As a result of the higher standard deduction, it may no longer make sense for some people to itemize their deductions. According to the nonpartisan Tax Policy Center, it is estimated that the number of taxpayers who itemize will decline to 10% from 30% of all taxpayers. Read more
Year end is the time many people focus on charitable giving, probably partly due to tax planning, but also as a reflection of the gratitude during the Season of Giving. Two ideas I like to share with clients, if appropriate, are the concept of a donor-advised fund and the Qualified Direct Charitable Rollover from a retirement account. Read more
Raising kids is expensive. By my estimate, it can cost close to $500K to raise a child, including college, in expensive parts of the country like the Bay Area. So, it’s helpful to know that there are certain tax advantages to having kids. A few of the more common ones are outlined below.