Child tax credit is $1,000.00 for a dependent child under the age of 17, and did not turn 17 within that tax year. However, the exact amount of tax credit actually received on the tax return may be affected by the annual income.
2017-$4050.00/person (For income tax filers not affected by income limitation phase outs)
Donate as much as possible to IRS recognized charitable organizations. (Cash or Non-Cash). Please obtain a receipt from the organization or charitable foundation. Take pictures of larger items in order to obtain a larger tax deduction for those items. Charitable contributions help to increase deductions and reduce taxable income.
Out-of-pocket medical expenses must exceed 10% of Adjusted Gross Income Medical expenses do not include pre-tax payroll deductions for company health insurance benefits.
A maximum of $15,000/person; however this is not tax deductible to gifter, nor is it taxable income to the recipient.
For 2017, maximum contributions of $18,500 under the age of 50. Over the age of 50, an additional $500 annually, or $24,500 may be contributed (catch up contributions) This is another mean for high income earners to reduce taxable income. Make every effort to maximize your contribution limit.
The Adjusted Gross Income (AGI) phase out range for taxpayer’s married filing joint in 2018 is $189,000-$199,000. Phase out range for single and head of household filer for 2018 is $120,000-$135,000. *Increase of $2,000 from 2017! This is especially important in financial planning for the long term future. These funds will grow tax free. We cannot stress enough how much of a tax advantage this can be for those eligible to make Roth contributions.
Short-Term capital gains are taxed as ordinary income. Long term gains are taxed at 15% if income is in 25%, 28%, 33%, or 35% marginal tax bracket. Long-term capital gains are taxed at 20% if income is in 39.6% marginal tax bracket. Zero taxes on long-term gains if in 10% or 15% marginal tax bracket.