Phoenix Tax Consultants

As the end of the year approaches, so to does tax time and preparation for filing one’s tax return. Here, Julie Brufke Wenger, owner of Phoenix Tax Consultants (AKA “the tax tacklers”), shares thoughts on the seismic changes in tax law from the new Tax Cuts and Jobs Act and how it will directly affect your 2019 tax return. In this video, she advises on the importance of taking “a look at how you can reduce your taxable income so you can realize some great benefits now available to tax payers [because] both on the personal side and the business side, it’s a whole new world.”

Key changes in tax law that will affect 2019 tax returns

Doubling of the standard deduction

The standard deduction reduces your taxable income and can be taken by you if you do not itemize. With the new tax laws though, the standard deduction is nearly doubling, making it harder for taxpayers to be able to itemize. A tax advisor can help figure out which one is best for you.

No more personal exemptions

Taxpayers will no longer be able to claim themselves, their spouses or their children. There are, however, new family tax credits that can help offset this and still get you deductions. It will take careful planning along with a tax advisor to figure out how to do this, such as whether or not to file jointly with a spouse. Also, state and local taxes will be limited to $10,000. It’s very crucial to plan in advance and look at ways to reduce your taxable income to fully realize the benefits now available for taxpayers. Working with a qualified tax advisor is the best way to develop a strategy for these new tax laws.

Mortgage interest deductions are decreasing

Mortgage interest deductions are decreasing from $1,000,000 to $750,000. Home equity loan interest is only available now when it’s used for certain purposes. A tax advisor can help you figure out how to do this. As Julie explains, “We don’t want to see any of our clients trip up and anticipate that deduction because they weren’t smart about it.”

Alimony and children’s account earnings are changing

Alimony payers will no longer be able to deduct alimony payments from their return and recipients will lose the ability to contribute alimony funds to an IRA because it is no longer considered earnings for them. Children’s account earnings will now be taxed at trust tax rates, which are very aggressive, especially once you reach over $12,500. A tax advisor can help you decide whether a penalty may actually work in your favor.

Introduction of the qualified business income deduction

The qualified business income deduction is newly available for business owners and is dependent on type of business and amount of taxable income shown on their return. In the Journal of Financial Planning, Julie advised, “this credit is subject to phaseouts based on taxable income. Any client with a business may be impacted, from the sole proprietor selling at home parties to the client who is a professional or owner of a startup.”

Taking the time to learn about these seismic changes in tax law with your tax advisor will help ensure you develop a solid strategy moving forward for your taxes in 2019. There are sunset provisions imbedded in these new laws so it’s very important to think ahead now to plan for your best future. For more information about Julie and her company, Phoenix Tax Consultants, visit https://taxtacklers.wpengine.com/ today!

Julie Brufke Wenger, owner of Phoenix Tax Consultants, has been working with clients in Phoenixville for over 25 years. Known as the “Tax Tacklers”, her company gets the job done under the premise of “we don’t just process – we plan.” As most taxpayers can attest, filing tax returns is typically an arduous and time-consuming endeavor and not one many look forward to but with tax professionals like Julie and her staff at Phoenix Tax Consultants, it doesn’t have to be that way. In this time of seismic tax changes under the Tax Cuts and Jobs Act signed into law this past year, getting top rate tax counsel and advice is imperative to getting the best return possible.

In Julie’s own words, Phoenix Tax Consultants is here for “helping clients be strategic to get the best results when we do their tax returns.” How, you may ask? Read on to learn why Phoenix Tax is best for filing your tax return.

• Use of their tried and tested tools to get you the best return. Phoenix Tax professionals will utilize their well-developed tools by asking first if you are self employed or employed by someone else. Determining that will provide the springboard to leap from there, in determining what tools are best to use. For example, one such tool is a retirement plan, such as a 401k or IRA, which can potentially have a big impact on your tax return.
• Work with you on stock options and deferred compensation. Julie notes, “The timing of making decisions of when to exercise a stock option or realize income can be very powerful.” Phoenix Tax takes the time to develop a strategy with you. Taxpayers are often not aware of their options, such as how adding the maximum to a health savings account can help reduce your taxable income now while also giving you peace of mind for possible healthcare needs later.
• Use of specific, highly honed tools designed to aid business owners. With these new laws come new possible deductions you can take advantage of “so it becomes extremely important to be strategic about what benefit plans you’re setting up for yourself and your employees.” Julie and her trained staff help with exactly that, such as by helping you figure out what’s the best salary to take for yourself and when to buy purchases. Phoenix Tax runs the numbers for you to give you a good idea how strategic purchases can affect your overall tax liability and how best to structure any debts.
• Phoenix Tax makes the promise to help individuals and small businesses make sound financial decisions to help minimize their taxes. With transparent pricing and personal service, they are there for you and it doesn’t stop after the return is filed. They’re experts with follow-up, setting them far apart from their competitors.

In the video above, Julie advises on the importance of speaking with a quality tax advisor before the end of the year to ensure you don’t miss out on opportunities that can significantly impact your overall tax return.

Call Phoenix Tax Consultants today to speak with a qualified tax expert to begin strategizing on how to minimize your taxes while maximizing your return.