Why Many Parents Should Reconsider Covering College-aged or Adult Children on their Health Insurance

Parents generally believe that the longer they can claim their children as dependents, the more tax savings they will accrue.  This is a misleading fallacy for most high-income families.  The reality is that most parents with more than $200,000 of annual income get zero tax benefit from their children and may continue to get limited [...]

The Tax Saving Opportunity of a Lifetime for Early Retirees

Like it or not, the Affordable Care Act will again rule the health insurance marketplace in 2018 regardless of what happens in Congress with tax legislation or whether the individual mandate holds up over the coming weeks.  Also like it or not, there has been a dramatic increase in insurance premiums from the onset of [...]

10 Tax Planning Strategies for the 2017 Tax Cuts and Jobs Act

It is November 8th, 2017 as this is written and there is no doubt that a lot will happen with the Tax Cuts and Jobs Act before the end of the year.  The current bill is being marked up by the House Ways and Means Committee and the Senate is due to release its own [...]

How A Negligent Rule of Thumb Causes Poor Divorce and Estate Planning Decisions

An important consideration in divorce and estate planning that often gets ignored, underappreciated, or just poorly evaluated is the relative comparison of different account types: tax free accounts, tax deferred accounts, and taxable accounts.  While many people tend to think of $100,000 as $100,000, the account type in which the money resides can make a [...]

Good and Bad Reasons Why High Income Earners Miss the Opportunity With 529 Plans – Part I

Mid-career professionals with young children severely underutilize Section 529 College Savings Plans.  That is not to say that these parents are unaware of 529 Plans or not using them for college savings.  In fact, most mid-career professional parents who I meet already know about 529 Plans and are often funding these accounts for future college [...]

Georgia AMT Taxpayers Take Notice – The Rural Hospital Tax Credit

Note that an updated explanation of the tax impact under the 2017 Tax Cuts and Jobs Act exists here. We wrote this article in 2015 about a simple tax credit (the QEE Tax Credit) that provided an opportunity for taxpayers in Georgia who face alternative minimum tax (AMT) to reduce their tax liability by $700.  The [...]

The Qualified Charitable Distribution Explained

The history of the qualified charitable distribution (QCD) feels a lot like the 'Friends' relationship of Rachel and Ross.  Off.  On.  Off.  On.  Off.  On.  There has been enough disruption in the availability of this tax-saving opportunity that it has been hard to remember if it is on or off.  Good news...it's on.  The brief history goes [...]

The Benefits of Leasing a Vehicle…Debunked

There are some can't miss ways to start an argument.  Talk politics in a diverse room.  Attend a Michigan home football game wearing an Ohio State jersey.  Suggest that The Rolling Stones were better than the Doors and that Highlander was the best movie ever made.  Or just decidedly state that buying a vehicle is better than leasing. The [...]

Take Advantage of a Year-End Tax Opportunity with a Donor Advised Fund

This time of year is referred to as the ‘season of giving’.  Charities report that 31% of all charitable donations happen in December each year and that 12% of donations occur on the final three days of the year.  There is good reason to believe that those percentages will increase dramatically in 2016.  Proposed tax [...]