2017 Year-End Tax Planning
As we approach the end of 2017, it’s the perfect time to reflect on this past year and plan for the year ahead. From the Illinois tax increase to the federal Tax Cuts and Jobs Act, 2017 was filled with tax implications that are still not too late to act on and potentially save you some money.
While the Illinois tax increased from 3.75% to 4.95% for 2017, the state provided a blended-rate option, as well as a specific accounting method, where income earned in the first and second half of the year can be taxed separately.
Although the Tax Cuts and Jobs Act passed by both houses of Congress takes effect in 2018, anticipated changes to standard and itemized deductions create potential saving opportunities through prepaying anticipated taxes, expenses, or contributions. Additionally, delaying billings and other sources of income to January 2018 can also result in greater tax savings than if they were incurred in December.
Give our tax planning team a call before the year ends to make sure you are set up to take advantage of all these tax changes!