Tax strategy scan

While the Trump administration has called for a delay to the April 15 deadline, they have yet to issue formal guidance on when paperwork is due.

Any gains on the sale of a property they've held for over a year may be taxed as much as 20%.

Designating charities as a beneficiary of their retirement accounts is one strategy that can enhance their tax savings.

Some tax credits are refundable, meaning they can get a refund in case the credits exceed their actual tax liability.

They are advised to consider making amendments if they want to take advantage of temporary tax provisions that Congress extended retroactively in December.

While they don't need a child to claim the earned income tax credit, the benefit's value increases based on the number of kids clients have.

Retirement savers stand to gain more by investing their money instead of taking an interest-free reimbursement.

Although the federal penalty was axed for those who failed to register for a plan, some states will continue to impose the coverage mandates.

Failing to pay taxes on side-gig earnings and keeping faulty records of business-related expenses must avoided to prevent an excessive tax burden.

While some tax-planning tasks can be time-sensitive, the challenge is to tackle the others that aren’t in a calculated fashion, an expert explains.

"Keep records and watch the statute of limitations. The usual IRS statute of limitations is three years after you file your tax return," an expert writes.

Deferred taxation on these retirement products, in part, depends on how their distributions are made.

Adjusting a federal income tax return depends on personal tax circumstances, “such as the materiality of the error,” an expert says.

Clients who have yet to make withholding adjustments to cover their tax liability still have time to avoid the extra burden.

One option is to sell funds with lower or no estimated distributions, especially if possible savings will exceed trading costs.

Waiting too long means clients will miss out on the opportunity to maximize the plan’s full tax benefits.

Clients with children are advised to start saving early in a 529 plan to take advantage of the “tax-free or tax-deferred growth.”

Funding a Roth account, for example, may not offer upfront tax deductions, but withdrawals are tax-free.

Payouts from pensions and tax-deferred accounts are usually not taxed in states without a state income tax or with levies only on interest and dividends.

High-deductible plans open the door to tax breaks for high-income investors, an expert says.