As summer winds down, you might want to put serious tax planning on your agenda. Changes that have already taken place (the Supreme Court's decision on premium tax credits under the health insurance laws, for example) and those that are still in limbo (tax extenders) can affect what you'll pay this year.
The June Supreme Court decision upholding the premium tax credit means you'll want to schedule a review of your income to make sure the amount you're currently receiving is correct. The premium tax credit helps offset your health insurance policy premiums. If you requested that the credit be applied directly against what you're paying each month, this "advanceable" portion is based on your estimated income. Changes in your financial situation can affect how much you're eligible to receive, and could mean you will need to pay back part of the credit with your 2015 federal income tax return.
In addition, unless Congress acts before year-end, certain tax breaks called "extenders" may not be available for 2015. These breaks include the deduction for state and local sales taxes and the ability to make tax-free distributions from your IRA for charitable purposes.
To discuss your situation and find the strategies that are most beneficial for you, please call Dugan & Lopatka at (630) 665-4440.