The new tax law has many impacts on state income taxes in 2018. The law limits the deductibility of state income taxes for federal purposes. It also raises the federal standard deduction amount. However, taxpayers should consider the impact on their state income tax of the decisions they make to minimize their federal taxes. This article examines why. The post New Tax Law May Affect State Income Tax, Too! appeared first on Nirenstein, Horowitz & Associates P.C..
Congress passed a new tax law just before leaving for the holidays. The new law temporarily doubles the estate, gift, and GST exemption. The law increases the standard deduction and limits deductions for state and local taxes. Read the article to find out more about the new law and how it will impact you. The post New Year’s Greetings appeared first on Nirenstein, Horowitz & Associates P.C..
The tax bills passed by the House and Senate would eliminate deductibility of state income tax and nearly double the standard deduction, dramatically reducing the number of people who would benefit from itemizing their deductions. As a result, most people would get no tax benefit from their charitable contributions. This article examines how a Donor Advised Fund could allow donors to make a contribution this year, getting a tax benefit, and then release the funds to charities in the future. The post No Charitable Deduction in 2018? appeared first on Nirenstein, Horowitz & Associates P.C..
Hartford elder law attorneys can help you to make plans to achieve a more secure future by growing your assets, protecting your wealth, and determining what happens to your assets after you are gone. Elder law attorneys don t just help older people with these issues – if you want to be financially secure and if [ ] The post Are There Tax Breaks Available for Saving for Retirement? appeared first on Nirenstein, Horowitz & Associates P.C..
A Connecticut retirement planning lawyer provides advice to seniors who want to achieve financial security during their senior years. Saving enough money to retire is really hard, and many people don t have enough set aside, The sooner you begin to work with a retirement planning lawyer, the easier it will be for you to build [ ] The post Should Retirement Income be Exempt from CT Income Tax? appeared first on Nirenstein, Horowitz & Associates P.C..
Connecticut estate tax rules can affect you if you have a larger estate, or if you will be inheriting a substantial amount of money. Estate taxes can be assessed on certain estates, which means that money which would otherwise go to loved ones or charities will instead have to be paid to the government. Estate [ ] The post Does Connecticut Estate Tax Affect You? appeared first on Nirenstein, Horowitz & Associates P.C..
Estate tax planning is very important if you have valuable assets that you want to leave to your loved ones. It becomes especially essential for those with a family business or farm, which are illiquid assets that could be counted as part of your taxable estate and that could leave your estate struggling to find [ ] The post Myths about Estate Tax Planning appeared first on Nirenstein, Horowitz & Associates P.C..
A grantor retained annuity trust is an irrevocable trust that could be part of your tax efficiency strategy if you are a high net worth individual who is exposed to the federal estate tax. Before we get into the details, we have to provide some background information about the estate tax so that you can [ ] The post This Irrevocable Trust Can Provide Estate Tax Efficiency appeared first on Nirenstein, Horowitz & Associates P.C..
Many people have heard of estate taxes, and you may assume that an estate tax and an inheritance tax are the same thing. In fact, these are two different forms of taxation. In this post we will explain exactly who must pay inheritance taxes, and we will also look at the differences between an inheritance tax and an estate tax. Inheritance Tax An inheritance tax is levied on each individual asset transfer. If you named five different nonexempt inheritors in your last will, an inheritance tax could be levied on transfers to each respective heir. The good news is that there is no inheritance tax on the federal level, though there is an estate tax. Most of the states in the union do not impose inheritance taxes either, but there are a few states that do levy state-level inheritance taxes. Our firm practices law in the state of Connecticut, and there is no state-level inheritance tax in our state. For your information, the states that have state-level inheritance taxes are Maryland, Iowa,
There are many things to take into consideration when you are planning your estate, and there are those who make mistakes that yield negative consequences, because they do not know all the facts. This certainly comes into play when it comes to taxation, especially in the state of Connecticut. You pay taxes all of your life, on virtually everything: your property, your purchases, your income, your capital gains, hotel rooms, gasoline, etc., etc., etc. It would be logical to assume that you can pass away free of taxation, but in many instances, this is not the case. In this paper we will look at taxation as it applies to your surviving spouse. Federal Estate Tax and the Marital Deduction We have a federal estate tax that is applicable in all 50 states. This tax carries a 40 percent maximum rate, so it can take a heavy toll on the financial legacy that you are leaving behind to your family members. The existence of the tax is the bad news; the good news is that there is an unlimited mari