Summer 2017 Newsletter
June 14, 2017
Dear Clients & Friends:
School is letting out and the tourists are arriving, a definite sign that summer is upon us. If you get a free moment between the hustle and bustle of kid’s activities and work, please take a few minutes to read the enclosed summer edition of our quarterly financial planner.
In this edition of our quarterly newsletter, you will find 5 tax planning strategies to keep in mind for 2017. Half-way through the year is a good time to consider any changes that you can make to your tax situation for the year. Some of the advice offered in our newsletter is to analyze your deductions and credits, study your investment portfolio, consider boosting your retirement plan contributions, study the education credits available and update your estate plan. Did you know that you can claim higher education credits even if you graduated this year?
On Page 2 of our newsletter, you will find important information on working while collecting Social Security benefits. There are important tax effects to consider if you choose to work while collecting Social Security.
Also on Page 2 are important reminders for parents who claim their kids as dependents. If you pay for childcare and claim the Dependent Care Credit, the credit is no longer available when your child turns 13. Once your child reaches the age of 17, the Child Tax Credit is also no longer available. Additionally, the Earned Income Tax Credit is no longer available for children over the age of 19 unless they are full-time students then the age for exemption is 24.
Be very careful when answering the phone or checking your email when you don’t recognize the number or the email address. On Page 3, the latest scams are discussed. One in particular is very worrisome. The Federal Communications Commission is calling it the “yes scam.” The scammer will ask you questions to get a voice-recorded “yes” with your voice signature. Have you been receiving a lot of phone calls from other states or telephone numbers you don’t recognize? Think twice before you answer and never give away your personal information or answer any questions.
Lastly, are you tempted to apply for and use credit cards that offer rewards? It’s important to read the fine print. While reward cards that offer points and miles seems impressive, you typically have to pay a sizeable annual fee for the credit cards with rewards. There are also important questions to ask, like, do the rewards expire?
Important dates to remember for the third quarter of the year are June 15, July 31 and September 15. June 15 is the due date for the second installment of 2017 individual estimated tax, July 31 is the due date for filing 2016 retirement or employee benefit plan returns and September 15 is the due date for extending Corporate and Partnership tax returns and the third installment of estimated individual tax for 2017.
We are working faithfully to complete the tax returns we have on extension. If you have not dropped off your 2016 information, please do so as soon as possible. During the busy tax season, we sometimes forget to tell our clients how much we appreciate their patronage. We enjoy interacting and assisting you with your individual and business tax and financial needs. We appreciate any comments you have on the services we provide and welcome any referrals. If you haven’t already, please check out our website. We have recently made changes and welcome your feedback.
Starkey & Company, CPA’s