By Bill Conlan
Tax Preparer
It seems like President Trump will make some changes in the future that should assist all of us as far as investments and taxes are concerned.
There appears to be some changes in store after 2025 when the 2017 tax reform act expires that will give us a higher standard deduction, a lower tax rate, lower taxes on capital gains, and also eliminates the $10,000 cap on state and local taxes, and also brings back certain tax credits.
Of course, we will still have to find a way to pay for these cuts, but I guess time will tell.
Some of President Trump’s cabinet picks appear to be propelling the stock market to higher gains, and remember our no fee annuities from Brighthouse Financial can help you to achieve these gains.
Congress recently passed, and the President has signed, the Social Security Fairness Act that has repealed the Windfall Elimination Provision, and the Government Pension Off set, which had reduced the Social Security benefits for persons on a civil service pension.
This change affects persons who are receiving a civil service pension often from teachers, police officers and firemen. This is an important benefit that could increase your Social Security benefits by as much as $6,000 per year.
This change will be retroactive for all of 2024, and not sure at this time how these changes will be implemented.
If your involved in a dispute with an x wife or husband, where one or the other takes a dependent first on a tax return before you have a chance to file, make sure you obtain an IRS PIN to prevent your return from being rejected when you file, and the IRS states with a PIN they will not reject any returns like in the past.
You may obtain an IRS Pin at this time by going to www.IRS.gov
Remember the new BOI requirements for any company registered under the “LLC” name, that requires you to register with FinCEN by the end of the year, however this requirement is now under review in the courts, and there have been many changes to the law over the past few months, so please check with FinCEN for the latest on the reporting requirements.
The standard deduction rates for all classes have increased to $29,200 for MFJ, $21,900 for HOH, and $14,600 for single.
Many other changes occurred in the Acts which were enacted during the 2015 -2025 time period and many of those changes will be addressed again in 2025.
Remember to take your RMD’s when required by your age, most likely between the ages of 70 ½, and 75.
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With over 45 years preparing Income Taxes in a timely and reasonable manner, I welcome any new clients, and you may contact me at 203-934-9525,