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3 midyear tax planning strategies for individuals

In the quest to reduce your tax bill, year end planning can only go so far. Tax-saving strategies take time to implement, so review your options now. Here are three strategies that can be more effective if you begin executing them midyear: 1. Consider your bracket The top income tax rate is 39.6% for taxpayers with taxable income over $418,400 (singles), $444,550 (heads of households) and $470,700 (married filing jointly; half that amount for married filing separately). If you expect this year’s income to be near the threshold , consider strategies for reducing your taxable income and staying out of the top bracket.

Keep or Toss: What to Do with Papers After Tax Season

The 2014 tax season is finally over! Congratulations for making it through! Now is the time to put up your feet, relax, catch up on your favorite shows, and spend time with your family. Sure, your office desk may be buried in two inches of IRS forms, receipts, pay stubs, and W-2s, but you’ll just push that to the back of your mind until next April, right?

Not necessarily.

Regular IRAs vs. Inherited IRAs

According to the Supreme Court, in a recent case involving the Bankruptcy Code’s exemption for retirement funds, a retirement account is not a retirement account if it is an inherited IRA and the owner is bankrupt.

Typically, when a person files for bankruptcy, funds they set aside for retirement can be exempt from the estate.