Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Taxpayers who applied for a tax return-filing extension in April have until Oct. 16 to file their returns, according to Yahoo Finance. These clients have the option to e-file, while those who will miss the extended deadline will have to file a paper return. Clients that file more than 60 days past the extended due date could face a penalty of 100% of taxes owed or $135, if they amount to less than that amount. The IRS has extended the filing deadlines for taxpayers in hurricane-hit areas to Jan. 31.
Women receive lower wage income than men, and this could lead to a shortfall in retirement for women, an expert writes at the Des Moines Register. Women who are in this situation are advised to have a retirement plan, save consistently, delay retirement and invest aggressively, the expert writes. "When planning for your retirement, consider investment risk, inflation, taxes and health-related expenses — factors that can affect your income and savings."
Fifteen tax planning tips from analysts and industry experts advisers may consider in 2017.
States are stepping up efforts to collect taxes on art purchases by collectors, according to MarketWatch. Art collectors may not have intended to evade taxes, as tax laws can be complicated, according to some financial professionals. “The rules aren’t clear, and there is a huge matrix of complexity people get trapped in,” according to one tax accountant.
Buying a home could help minimize taxpayers' tax burden, as homeowners qualify for certain tax breaks, according to the Austin American-Statesman. These tax breaks include the mortgage interest deduction, the Energy Efficient Property Credit program and other tax write-offs for energy efficiency home upgrades and interest paid on a home equity line of credit.
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IRA balances are up, and so are divorces, particularly among baby boomers. These so-called gray divorces have roughly doubled over the past 25 years, according to the Pew Research Center.
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Clients ready to quit the workforce in advance need to understand the impact of doing so on their Social Security benefits, Michael Kitces writes.
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The agency will allow some Texas residents to file certain individual and business tax returns and make some tax payments as late as Jan. 31.
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Clients can max out their retirement savings by making the most of tax-advantaged accounts, such as IRAs and 401(k)s, according to this Motley Fool article. They should also contribute enough to their 401(k) to get their employer's match, and take advantage of catch-up contributions if they are 50 or older. Other non-retirement savings vehicles that clients use to turbocharge their savings are the health savings accounts and the 529 college savings plans.
