A ROTH IRA CONVERSION MIGHT BE RIGHT FOR YOU

If you are single, you must make less than $132,000 to contribute to a Roth IRA for the 2016 tax year. If you are married, your combined income must be less than $194,000 in 2016. However, you can convert a traditional IRA to a Roth IRA no matter how high your income. Roth IRAs are popular because qualifying distributions are tax-free and annual distributions are not required after age 70½. A conversion to a Roth is a taxable event, so factor that into your analysis. For more information, call us at (518) 798-3330.

GRANDPARENTS CAN HELP REDUCE THE COST OF COLLEGE

A growing number of grandparents are helping raise their grandchildren. Grandparents are giving their time and money, helping with the cost of toys, clothing, education and extracurricular activities. This can add up to thousands of dollars. Many millennials indicate they could not afford their lifestyle if it were not for the help their parents provide.

While helping to support grandchildren may improve the quality of life for the grandparents, it's critical they build their own financial security first. One way for grandparents to benefit their grandchildren while protecting their own finances is contributing to a college plan. This provides a potential tax break while preparing their grandchildren for an education their parents might not be able to afford on their own.

If you would like more information on tax breaks associated with education plans, give us a call at (518) 798-3330.

WAITING ON YOUR REFUND?

The IRS processes most tax returns in 21 days for electronic filings and 6 weeks for paper returns. You can use the "Where's My Refund?" tool on IRS.gov to track the status of your return. Consider direct deposit as an option to receive your tax refund.

2017 SECTION 179 DEDUCTION

In 2017, businesses can expense up to $510,000 of qualified new or used business equipment purchases, with a $2,030,000 annual purchase limit. In addition, new equipment purchased in 2017 may qualify for 50% bonus depreciation. This rate drops to 40% in 2018, so plan your purchasing accordingly.

DO YOU NEED TO THINK ABOUT THE ALTERNATIVE MINIMUM TAX?

You may not have thought much about the alternative minimum tax, or AMT, since Congress passed a law that permanently fixed the exemption. But the tax, which you calculate separately from your regular tax liability, is still around. Here's how the AMT might apply to your 2016 tax return.

COUPLES AND MONEY: FIVE RESOLUTIONS FOR 2017

Do you have a financial plan that works for both you and your spouse? Here are suggestions that can help.

TAX BRACKET, TAX RATE, WHAT'S THE DIFFERENCE?

The difference between your tax bracket and your tax rate is more than a trick question. For example, knowing your tax rate gives you an accurate reflection of your tax liability in relation to your total income. Knowing your tax bracket is useful for planning purposes.