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Make the most of deductions and exemptions

Make the most of deductions and exemptions

As taxpayers begin collecting their W-2s, 1099s and other tax forms, many are not aware of new provisions benefiting itemized deductions and personal exemptions. Prior to 2010, the value of claiming deductions and exemptions on the tax return diminished (or “phased out”) at higher income levels. For example, see phase-out limits from 2009: Personal exemptions

Tax law creates potential opportunities for taxpayers to save more

Tax law creates potential opportunities for taxpayers to save more

The federal tax law extended today’s historically low tax rates through 2012 and created potential savings opportunities for taxpayers. Clients may want to explore ways of capitalizing on the tax rates now before future changes occur. Higher taxes are already on the horizon, including a new 3.8% Medicare surtax on investment income that becomes effective

Estates in 2010 have two options

Estates in 2010 have two options

Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in

Are your clients’ portfolios on track?

Are your clients’ portfolios on track?

The start of a new year can be a good time to discuss portfolio rebalancing with your clients. Given the volatility in both the equity and bond markets during 2010, a portfolio may have experienced shifts in asset allocation. Discussing rebalancing gives your clients an opportunity to make changes and get back on track with

College savings tax credits extended

College savings tax credits extended

Several tax credits for investors saving for college were extended for two years in the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The contribution limit for the Coverdell Education Savings Account program, which was scheduled to revert to $500, was maintained at $2,000 and extended through 2012. Depending

Charitable “rollover” program extended through January

Charitable “rollover” program extended through January

It’s not too late to discuss charitable giving strategies with your clients. The recent passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 also extended a program that allows retirees to take tax-free withdrawals from IRAs and to take a 2010 deduction for donations made by the end of January

Tax cuts extended for two years

Tax cuts extended for two years

The recent signing into law of H.R. 4853 — the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 — represents the most significant tax law in a decade. At a cost of $858 billion, it represents a tremendous investment at a time when the nation’s economic recovery is fragile. In addition to

Tax deal presents a short-term Roth IRA opportunity

Tax deal presents a short-term Roth IRA opportunity

With the extension of the Bush tax cuts being signed into law, a certain provision of Roth IRA conversions may become more attractive. Clients who convert a Traditional IRA to a Roth IRA before the end of 2010 may choose to pay the tax on the conversion either in its entirety this year or to