2017 Tax Rates
For most people, taxes are one of the top 3 expenses of the year! We have to know and understand what tax bracket we are in. Knowing this gives a tax payer knowledge to better plan for potential tax liability that is often tied to spending and investment decisions. Imagine if an extra deduction could take you from the 25% to the 15% tax bracket. That would be important, right? Remember, deductions become more valuable as income reaches higher levels because deductions take income off of your top tax rates first.
To determine your tax bracket, match up your taxable income (this is your income less all your deductions and exemptions) with the ordinary income tax rates. Capital Gains rates shown are for investments in Non-Qualified, or Non-Retirement accounts and held for longer than one year (short-term gains are considered in ordinary income).
Of course, with President Trump now in the White House, tax rates and the overall tax code is likely to welcome several changes. More on this in an upcoming post, but suffice it to say, it is likely that these changes won’t affect us until 2018 or beyond.
For now, we believe that taking a proactive approach is better than a reactive strategy.
And finally, information on 1099s:
1099s are just around the corner. Like past years, these tax forms come out in phases. The first phase beginning at the end of January (1099R are from retirement accounts). For Non-Retirement Accounts (e.g. Trust, TOD, or Joint Accounts), there will be various phases over the next 2 months. Most 1099s for these accounts will be sent be the beginning of March, with a couple of higher complex 1099s being sent a couple weeks later.
If you have “My Account View” set up online, then you can view your 1099 online just after they have been mailed. So if you need extra copies, you can get them there, or give us a call and we can help you with that.
Unfortunately, we do not have the ability to make this process go faster. Receiving a Corrected 1099 after you have filed your taxes has the potential to be a huge head-ache and we want our clients to avoid that as much as possible. Please see below for a more in depth look at 1099 Mailing Dates.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.