By midnight on April 18, millions of Americans will have hit the File button in their tax preparation apps or dropped their tax returns in the mail. With 2017 tax season almost behind us, it’s a good time to take a look at taxes as they relate to Americans over 50 — specifically, older Americans’ impact on the federal coffers as well as the impact taxes have on their own wallets. And there’s another reason to look at this issue now: In the coming months, tax reform promises to be a hot topic of discussion in Washington, D.C.
As the April 18 filing deadline looms, a new wave of tax scams is heating up. Whether you’ve already filed your 2016 return — and especially if not — here’s how to protect yourself from these last-minute schemes currently making the rounds.
College students and others who have student loans are the latest target of IRS impersonators. In this iteration of the ongoing, widespread scam, fraudsters threaten arrest and other penalties unless a nonexistent “federal student tax” is paid immediately.
The end of tax season doesn’t mean an end to tax scams; rather, a new wave starts with the deadline for filing tax returns (typically April 15 but this year extended three days so Emancipation Day can be celebrated today).
It may not seem like it for many Americans, but recent health care spending in the United States has been growing at historically low levels. Between 2000 and 2007, per capita health spending grew at an average annual rate of 7.55 percent. Then we saw a steep decline between 2008 and 2014, when the rate dropped to an average 3.2 percent per year.
Along with trying to scam the public in the nation’s reigning top ruse — phony phone calls threatening arrest, deportation or seizure of property unless immediate payment is made for alleged back taxes — IRS impostors are also breaking records on another fraudulent front this tax season. Bogus emails and text messages that phish for sensitive information or deliver computer malware have increased fourfold so far this year, reports the Internal Revenue Service. Designed to look like they’re from the IRS or another legitimate entity, these emails seek information that could be used for identity theft or to file false returns for fraudulent refunds.
Combine the nation’s biggest scam, the most criticized profession and a new federal mandate issued to the IRS that’s buried in a highway funding bill and what’s the result? The potential for more top-shelf trickery — and, perhaps, a well-deserved “Whaaa?”
As a financial adviser, I’ve seen a lot of clutter in people’s financial lives. I know people who have dozens of financial accounts. Problem is, the more accounts one has, the harder — and more time-consuming and stressful — it is to keep track of everything.
Soon we’ll be looking at tax day in the rearview mirror, which is the perfect time to plan for future tax consequences. One strategy that’s especially good for recent retirees is converting part of a traditional IRA to a Roth IRA.
As tax season draws to a close for another year, you may be among those feeling the pinch from taxes paid on investments. I admit that paying taxes is not exactly my favorite thing, so I always look for ways to be more tax-efficient. Here are three things you can do to keep more of what you earn:
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