Congratulations to Jerry Taylor

As many of you know, Jerry Taylor is retiring. While he's enjoyed helping private business owners with tax, accounting, and retirement planning for more than 46 years, he is looking forward to spending time with his seven grandchildren, photography, and woodworking. Jerry is also actively involved with various ministries in his church and serves as the church treasurer.

"It has been an honor and privilege to support so many small businesses and individuals over the years," says Jerry. "I can start this next chapter knowing all of these clients will be in good hands with Orcutt & Company.”

We'd like to thank Jerry for his dedication to clients, and for all the impact he has had on the community in West Chester and beyond!

Less Publicized Provisions With Our New Tax Law

Starting this calendar year, there are no longer income limitations as to who can itemize. For some people, that may benefit you if you want to give more of your income to charities.

In fact, the cap on charitable contributions as a percentage of adjusted gross income increased from 50% to 60% this year.

Want to know more about some of the less talked about provisions of our new tax law? Click here to keep reading.

Changes to 529 Education Savings Accounts

529 plans are designed to support families saving for future education expenses. Earnings on contributions are not subject to federal taxes when they are eventually withdrawn to pay for schooling and schooling-related expenses.

In our recent wave of tax changes, the definition of "qualified education expenses" has expanded, which can be great news for savers.

In the past, this was a tool that was for higher education only. Now, a 529 plan allows up to $10,000 in tax-advantaged withdrawals per year, per beneficiary, for qualified elementary or secondary public, private, or religious school. (This does differ by state and it also excludes home schooling.)

See other benefits of 529 plans, including how they can be used as an estate planning tool, free of federal gift tax, here.

Confused About the 2018 HSA Contribution Limits?

The IRS recently announced a clarification in a ruling it made regarding Health Savings Accounts (or HSAs). The contribution limit will stay with the original $6,900 limit for family coverage for 2018.

Previously, the IRS had announced that the limit would be reduced for this calendar year to $6,850.

That may not seem like a big deal, but people who had already contributed were going to face a penalty. Yes, a small penalty, but it still raised quite a few questions. The IRS has responded by going back to the limit of $6,900 for 2018.

Read more: find the source here.

Have a Tax Question?

Learn about new strategies your business—and you—can take advantage of this year. Give us a call to schedule an appointment: (513) 576-1989.