IRS “Dirty Dozen” 2016 Tax Scams

Key Takeaways

  • There are three tax systems in the U.S.: one for the informed, one for the uninformed and one for the ill-informed.
  • Before you file, make sure you review the IRS’s “Dirty Dozen” list of tax scams for 2016.
  • An experienced and vetted tax preparer will not only prepare your return the right way, but also can help you avoid being duped by tax scammers.

Saving Taxes in 2016

Key Takeaways

  • Young adults can take advantage of the enhanced child tax credit, the enhanced American Opportunity Tax Credit, and the enhanced earned income tax credit.
  • If you’re over age 50, take advantage of the $6,000 annual “catch up” for your 401(k).
  • Many retirees receive tax-preferred treatment of capital gains. If you are over age 70 1/2, you can also donate up to $100,000 to charity tax-free if the funds are drawn from your retirement plan.

7 Year-End Tax Tips

Key Takeaways

  • Now is when we’re consumed by purchasing and accumulating possessions, but you can save a lot of money by cleaning out your closets and garage and cleaning up your financial statements.
  • Making smart gifts, timing your capital gains, and accelerating charitable pledges and state tax payments can all pay off big in the long run.
  • Before making important year-end decisions, seek out tax counsel, a CPA or firms like ours to see how many of these seven tips below can help you and your family save money.

Taxes Later Is Better Than Now

Key Takeaways

  • Inflation, taxes and transaction costs are often overlooked, but can take a substantial bite out of your long-term wealth accumulation goals.
  • When it comes to paying taxes, it seems natural to defer doing so. But, everyone’s circumstances are different and things change as you go through life.
  • Tax planning is tricky. The rules are complex and change frequently. Review your situation at least once every year with trusted advisors.