Six Ways to Make the New Tax Bill Work for You

Posted on by Dena driver

As reported by Bloomberg.

You can save a lot of money—if you act quickly.

At the end of every year, millions of Americans can make strategic moves to shave a few bucks off their April tax bill. Right now, millions more should be able to get into the act, with Congressional Republicans poised to pass a 503-page law that fundamentally restructures the U.S. tax code.

If the bill passes, new tax rates and countless other provisions would go into effect on Jan. 1. Most of the old rules though would still apply in the last two weeks of 2017—and that gives individuals a shrinking window of time to employ strategies that would lower their taxes for next year’s tax season. (While the legislation would take effect in the new year, it won’t be reflected in your tax forms until the 2019 tax season).

So, here are suggestions from accountants, financial planners, and other tax experts on how to make the most of this opportunity. Keep in mind that the best advice depends specifically on how you’re going to be affected by the tax bill. While most Americans would get a tax cut in the short term, some taxpayers could see higher tax bills in 2018. “No individual is average,” Suzanne Shier, a tax strategist at Northern Trust Corp., reminds us. “An average is a composite of multiple individuals.”
If your taxes are set to spike in 2018, many of these strategies won’t work as well. But if you’re part of the majority who will see an initial tax benefit from the law, there could be big benefits for acting soon.
Read the full article at Bloomberg.