When Congress changes federal tax law, it always dominates the headlines, but the IRS' portion of a taxpayer’s income is only part of the story. Every state has their own unique set of tax rules, and it is not enough for financial advisors to be versed in the rules of their home state. Eight states have no individual income tax. For the other states, there are 42 different sets of rules on what type of income is taxed, how it is taxed, at what rate it is taxed and whether where you work or where you live is more important. Then one could wade into local taxes, with nearly 5,000 jurisdictions in 17 states imposing a local income tax, which can treat nonresidents differently than residents.
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This article is the 4th in a series of the 7 most common mistakes financial advisors make on tax planning with clients
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This article is the 3rd in a series of the 7 most common mistakes financial advisors make on tax planning with clients
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This article is the 2nd in a series of the 7 most common mistakes financial advisors make on tax planning with clients
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This article is the 1st in a series of the 7 most common mistakes financial advisors make on tax planning with clients
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For some taxpayers, so-called “backdoor” Roth contributions can be a great way to fill an investment bucket that will grow tax free. Tax free is everyone’s favorite kind of money but the […]
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Words matter. At times distinctions may seem trivial, but how we think about certain topics can influence the action we take. When it comes to being the beneficiary of an […]
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“Well, the software let me do it.” This sounds more like something you’d hear from siblings fighting than from a professional. Unfortunately, taxpayers, tax preparers, and financial advisors all have […]
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No one goes to an urgent care center complaining that the Family Doctor can’t also do open-heart surgery. We all understand that “doctor” is a general term. Depending on […]
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