Latest Articles from our News Archive
Using Children and Family for Maximum Tax and Economic Benefit
The government provides a behavioral incentive to have families with children through tax banefits. The only other behavior encouraged by our tax code is home ownership. Some of the many advantages afforded to families include the Child Tax Credit. The credit for children under age 17 is $600 per child for 2001 through 2004, with scheduled increases until it reaches $1,000 per child in 2010...click here to read the full article.
Basic Year-End Tax Saving Strategies
Most of the changes to recent tax law improved tax benefits to families and retirement savings. The impact of the law changes will be nominal for the upcoming year, with the bulk of the rate cuts and other benefits phasing in over several years. The benefit of the estate tax repeal, however, is both complex and tentative. The law gradually phases out the tax, then abolishes it completely in 2010, only to restore prior (pre-2001) law in 2011 unless Congress acts again to extend the repeal.
Given the silliness of Congress, and its failure to achieve its professed goals of simplicity and predictability, it may be smart to plan your taxes as you always have, not taking the longer-range provisions of the tax code for granted. To that end, here are some of our basic year-end tax tips, with some comments that apply for 2002, to help you focus your planning the next year or two...click here to read the full article.
Rumor Mill Humming for South Carolina §529 Plan
Some of you have heard me criticize South Carolina for its puny prepaid tuition plan in the past. It generated nearly zero interest from the public due to the lack of investment options and other restrictions on benefits. The polar opposite of the prepaid tuition plan, the South Carolina §529 college savings plan will offer investment options administered like mutual funds by Bank of America (according to my sources). This gives the account owner some control, and some responsibility for investment performance and the ultimate value of the account...click here to read the full article.
Adoption Credit and Exclusion Increased
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGGTRRA for us acronym geeks) provides for the expansion of many long-standing tax preferences for families and children. One feature we havent talked about yet is an increase in the federal tax credit for adoption expenses...click here to read the full article.