With a recent notice from the IRS that the tax filing deadline has been pushed back to May 17th, you may be feeling a little off the hook for now. The pressure is off, at least for the moment. However, while there is a momentary lull in the action, consider a few facts about taxation which might make you think about taxes differently. Historic Tax Rates While it’s easy to feel like you are paying too much in taxes, especially at this time of year, it’s important to put this in perspective. In 2021, the top marginal tax rate is 40.8%, which is a combination of the top marginal bracket of 37% and the 3.8% Medicare surtax for high earners. That sounds like a very high tax rate but consider that the historic average top marginal tax rate (1925-2026) is 57.5%, with rates in the 1950’s topping 90%. The marginal tax rate considers the highest tax bracket you hit with your taxable income, while the effective tax rate is the percentage you are effectively paying when your income across all Read on! →
When the tax returns are completed for the year, don’t just put them in the file drawer and forget about them. Use the data provided to make some good decisions about 2021 withholding and saving patterns. This is a good time for you to review a recent paystub from 2021. With tax return results in hand, you can estimate whether you need to adjust your W-4 to change federal withholding, either reducing large refunds or withholding a bit more each pay period to better cover 2021 taxation. Your CPA can assist with this evaluation. Lastly, refer to your paystub to ensure you are taking full advantage of deferrals to retirement plans, using the table below to view the annual maximums allowable. Your plan administrator allows you to adjust deferral percentages throughout the year.
Stay up-to-date with six major changes to Social Security for 2018.
As we begin the new year, there are many changes afoot which will impact clients in a variety of ways. The passage of the 2017 Tax Cuts and Jobs Act introduces many changes to personal income taxation beginning with the 2018 tax return filing. The following contains a few of the highlights which will impact your overall taxation going forward. 2017 Individual Income Tax Rates 2018 Individual Income Tax Rates Married Filing Jointly and Surviving Spouses: Married Filing Jointly and Surviving Spouses: 10% (Taxable income not over $18,650) 10% (Taxable income not over $19,050) 15% (Over $18,650 but not over $75,900) 12% (Over $19,050 but not over $77,400) 25% (Over $75,900 but not over $153,100) 22% (Over $77,400 but not over $165,000) 28% (Over $153,100 but not over $233,350) 24% (Over 165,000 but not over $315,000) 33% (Over $233,350 but not over $416,700) 32% (Over 315,000 but not over $400,000) 35% (Over $416,700 but not over 470,700) 35% (Over $400,000 but not over 600,000) 39.6% (over $470,700) 37% (over $600,000) Single Individuals: Single Individuals: 10% (Taxable income not Read on! →
At Clearview Wealth Management, we take the safety and security of your personal information very seriously. It is essential in today’s global, wired world to protect yourself and your private information. As we witness almost every day in the news, scams and hackers continue to threaten the security of our personal information. Below are some areas to consider when enacting better protection over your personal information. Password Tips Don’t use combinations of your personal information (names, date of birth, address, zip codes) as these are available to the public online. Use phrases like “I attended 1st grade at Edinboro Elementary in 1999”. For some sites you can use the entire phrase, but if not, you can abbreviate it to something like “Ia1gaEei#1999”. If available, use your fingerprint, key fob or voice recognition as your password. Security of your assets Investment Institutions Secured login to your financial institution website, including complex passwords, security questions and voice recognition security. Signature required for money movements and signature matching technology at custodian site Bi-directional oversight (you can verify our actions through your Read on! →