Planning Your Individual Income Taxes
Anticipation: Know your income
The changes under the newly proposed individual tax regulations pose many difficult questions and coming right as the year winds to a close, has most of us on edge. The hot topic items at the forefront of the framework, include the bracket and rate transformations, the reduction and/or drop of itemized deductions in lieu of a doubled standard deduction, and the repeal of net investment and alternative minimum taxes.
With such drastic changes in tax reform, the best plan of action is to anticipate and react to any potential changes as quickly as possible. Individuals should be keeping a ‘back-of-the-envelope’ income calculation at the very least. If you don’t know your income, how can you assess tax changes?