How the new tax law affects every age — from babies to boomers – MarketWatch

As always, two things remain constant: (1) you will get older every day and (2) you will get taxed all along the way. In this article, I’ll explain some key age-related tax and financial planning milestones to remember for you and your loved ones, taking into account changes included in the new Tax Cuts and Jobs Act (TCJA). Age 0-23: Kiddie tax can bite even harder under the new law Under the dreaded Kiddie Tax rules, part of a young … Continued

Affluent clients with kids can lower bills with Tax Cuts and Jobs Act: Tax Strategy Scan | Financial Planning

  This year, millions of American families can enjoy a $2,000-per-child break under age 17 tax break with the expansion of the child tax credit, according to this article from The Wall Street Journal. In addition, the overhaul even raises the full credit income limit. “Many affluent families earning between about $140,000 and $400,000 who didn’t get a tax break for their children in the past, will now qualify for one,” according to one CPA. Here, the expert provides an … Continued

How to avoid making the same mistake Aretha Franklin did – MarketWatch

  The vast majority of folks are no longer exposed to the federal estate tax, thanks to today’s ultra-generous $11.18 million exemption for singles or effectively $22.36 million for married couples. Great! But being exempt from the federal estate tax is not the end of the story. If you have minor children and some assets (maybe just a car or two and some nice furniture), you probably need an estate plan regardless of your tax situation. And the truth is, … Continued

For income tax savings, don’t bypass basis – Lexology

  Traditionally, due to lower estate tax exemption amounts, many married couples would use bypass trusts or credit shelter trusts as part of a typical estate plan. For example, on the death of the first spouse, assets in that spouse’s revocable trust would be allocated to a bypass trust (frequently referred to in the trust document as a family trust) up to the amount of the deceased spouse’s remaining estate tax exemption, with the balance allocated to a marital trust … Continued

Myth: Life Insurance is NOT Taxable

  You may think that life insurance is tax-free. Unfortunately, the “no tax on life insurance” idea is only partly true: Life insurance is income tax-free. In other words, recipients of a decedent’s life insurance policy do not have to pay income tax on that sum. However, if it’s large enough, the decedent’s estate — including any life insurance proceeds — could be subject to federal and/or state estate taxes. As an example, let’s say you have a $1 million … Continued