Students and Parents to Pay Higher Loan Rates College students were sad to see it will cost them more to borrow, as interest rates on federal student loans rose for the second year in a row. Undergraduate students can expect to pay 5.04% in interest on new Stafford loans instead of the current 4.45%. Graduate students will see the interest rate on…
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IRS Limits SALT Tax Workarounds
IRS Shuts Door on SALT Creative Workarounds The IRS said no to some of the creative workarounds for the new $10,000 limit on the deductibility of state and local taxes (SALT). Its new guidance appears to close the door on a strategy offered by the state of New York and some other states to circumvent the deduction limit by attempting…
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Why We Watch Your RMDs
What Are Required Minimum Distributions? Some clients are surprised when they learn that the IRS forces them to take “required minimum distributions” – known as RMDs – after they turn age 70½. When they don’t need the money to spend, they question why the government makes them take money out of their IRAs. The answer is that the government wants…
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Gift and Estate Taxes After Reform
Gifting Maximums Increased Many of our clients had been gifting (or receiving) the maximum $14,000 annual tax-free amount for years. For the first time in more than a decade, that maximum has increased and now stands at $15,000. The Tax Cuts and Jobs Act, signed into law in 2017, also nearly doubled the federal gift and estate tax basic exclusion…
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Should you buy an extended warranty?
Is an extended warranty worth the cost? When you’ve purchased an electronic device, major appliance, or vehicle, chances are you’ve been asked if you also wanted to buy an extended warranty or service contract. Extended warranties are offered by retailers for an additional cost to customers and provide repair or product maintenance for a specific period of time. Selling extended…
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