Michael J Porro & Company

Financial Advisors, LLC

180 Old Tappan Road, Old Tappan, NJ 07675-7052

Phone: 201-768-0218

Fax: 201-768-6487

Website: porrofinancialadvisors.com

July/August 2018

Midyear Tax Checkup

Article Image

The halfway point of 2018 is a good time to examine how the Tax Cuts and Jobs Act of 2017 affects you. That way you can be better prepared come tax season. Here are some changes you might want to note:

Cap Gains Brackets Change
While the existing three capital gains tax rates remain the same, the income brackets (see below) on which capital gains and qualified dividends are levied were uncoupled from ordinary income tax rates and indexed to inflation.
Joint Filers
  • 0% - $77,200
  • 15% - $77,201 - $$479,000
  • 20% - $479,001 and up
Single Filers
  • 0% - $38,600
  • 15% - $38,601 - $$425,800
  • 20% - $425,801 and up

Long-term capital gains taxes are levied on investments held at least one year and one day. Shorter-term investment gains are still taxed at ordinary income tax rates.

Income Tax Brackets
You likely know by looking at your paycheck that federal income taxes have also changed. If you're like many taxpayers, you have seen an increase in your take-home pay. Talk to your employer to make sure your company is withholding the right amount of taxes from your pay. If your employer takes out too much, you'll get it back as a refund after filing your 2018 taxes. But why leave the money with the IRS earning zero interest?

Likewise, make sure your employer deducts enough to cover your 2018 federal tax bill. Also know that even if the correct amount of money is withheld for taxes on income from your employer, other tax considerations such as untaxed freelance income earned elsewhere might prompt you to work with your employer to deduct a little more money from your paycheck.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Michael J Porro & Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.